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FIS Hit With Target Cuts After EPS Miss and Soft Outlook, Cash-Flow Goals in Focus

Analysts responded to the guidance reset with lower price targets.

Overview

  • RBC Capital lowered its price target on Fidelity National Information Services to $69 from $86 and kept an Outperform rating, citing the earnings miss and below-consensus near-term guidance.
  • Susquehanna cut its target to $55 from $69 and maintained a Neutral rating, noting Q4 revenue outperformance in both Banking and Capital Markets.
  • FIS reported Q4 2025 revenue of about $2.81 billion, topping estimates, with adjusted EPS of $1.68 narrowly missing the $1.69 consensus.
  • Management guided Q1 2026 adjusted EPS to $1.26–$1.30 versus roughly $1.34 expected by analysts, pointing to near-term margin pressure.
  • The company highlighted recurring revenue momentum and set 2026 targets that include free cash flow above $2 billion with 27%–33% growth and double-digit gains in sales and EBITDA.