Raymond James cuts Fidelity National stock price target on weak outlook

Raymond James has reduced its price target for Fidelity National Information Services (FIS) stock to $35 from $50, while keeping an Outperform rating. The firm highlighted disappointing third-quarter results and cuts to 2026 and early 2027 revenue growth expectations. Third-quarter performance was close to estimates, but recurring revenue growth slowed in both segments. FIS currently trades at a P/E ratio of 4.6, and appears significantly undervalued based on InvestingPro data.

The company lowered its 2026 adjusted earnings per share outlook by about 6%, and the 2027 outlook anticipates flat revenue growth and a moderate decline in adjusted EPS. This is well below market expectations of 4% revenue growth and 7% EPS growth. The departure of the CFO adds uncertainty to the outlook. FIS shares fell about 24%, from $40.15 to $29.75, nearing its 52-week low of $32.09.

Investors may need patience as management aims to rebuild credibility by meeting near-term targets. FIS reported third-quarter results that slightly beat expectations, with adjusted earnings of $1.61 per share on $3.45 billion in revenue. However, the company warned of weaker margins and earnings for 2027, prompting doubts about future growth.

Fidelity National Information Services also received a downgrade from William Blair, who shifted its rating from Outperform to Market Perform due to concerns over decelerating revenue growth and limited improvement prospects.