RBC Capital Downgrades Clearwater Analytics Holdings, Inc. (CWAN) to Sector Perform and Lowers its Price Target to $24.55

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is among the 10 Fastest Growing NYSE Stocks to Buy.

On February 26, 2026, RBC Capital downgraded Clearwater Analytics Holdings, Inc. (NYSE:CWAN) to Sector Perform from Outperform and lowered the price target to $24.55 from $36 after the company agreed to be acquired by an investor group led by Permira and Warburg Pincus for $24.55 per share in cash. RBC said that given the growing bearish narratives around artificial intelligence within the software sector and the comprehensive sale process conducted by Clearwater, the firm believes the deal likely represents fair value for the company.

On February 18, 2026, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) reported Q4 adjusted EPS of 15c, in line with consensus estimates. The company reported Q4 revenue of $217.5M, above the $216.71M consensus estimate. CEO Sandeep Sahai said the company delivered a strong finish to 2025, with revenue increasing 72% year over year. Sahai added that GenAI investments helped drive internal efficiencies, lifting Non-GAAP gross margin to a record 79.2%, while adjusted EBITDA rose 77.7% year over year to $74.1M. He also highlighted sequential ARR growth of more than $33M, describing the quarter as transformative for advancing the company’s vision of institutional investment management.

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) develops and provides a software-as-a-service solution for automated investment data aggregation, reconciliation, accounting, and reporting services in the United States and internationally.

While we acknowledge the potential of CWAN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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