RBC Capital lowers target, holds rating
RBC Capital reduced its price target for Fidelity National Information Services Inc. (FIS) to $69 from $86 but kept an Outperform recommendation on the shares. Analyst Daniel Perlin made the change in response to FIS’s quarterly results and the company’s fiscal year 2026 guidance.
Analyst rationale and company signals
Perlin said the reported quarter and the FY26 outlook lay the groundwork for what he describes as a cleaner total return profile, supported by improved free cash flow generation. That view underpins RBC’s continued Outperform stance even after trimming the firm’s price objective.
RBC also highlighted the strategic value of the combined Issuer and Core Banking data assets, noting they form a meaningful proposition for financial institutions that want to partner with outsourced providers for AI solutions.
Market performance and valuation context
The stock is trading at $48.23, close to its 52-week low of $46.16, after a roughly 33% decline over the past six months. Independent analysis on the InvestingPro platform indicates FIS appears undervalued at current levels, with the service’s Fair Value assessment implying substantial upside potential versus the market price.
Investors should also note the company pays a 3.71% dividend yield and has a 24-year record of consecutive dividend payments.
Recent financial results and guidance
Fidelity National Information Services reported fourth-quarter and full-year 2025 results showing robust revenue growth. Adjusted revenue and adjusted earnings per share met the company’s expectations, while Q4 revenue exceeded forecasts. Management provided guidance for the coming quarters that signals an expectation of ongoing growth.
The recent disclosures did not include any information on mergers or acquisitions, and there were no reported analyst upgrades or downgrades in the update made available alongside the earnings and guidance.
Where to find deeper research
RBC’s maintained Outperform rating and the revised price target are part of the firm’s research work. Investors seeking further detail can consult FIS’s Pro Research Report, one of more than 1,400 reports available on the InvestingPro platform, which the platform positions as offering expert insights and actionable intelligence.
Given the mix of updated guidance, recent revenue outperformance in Q4, and the company’s dividend history, market participants will be watching upcoming quarters for confirmation that the free cash flow trajectory and revenue growth continue to align with the constructive elements cited by RBC.