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1. Company Snapshot

1.a. Company Description

Fiserv, Inc., together with its subsidiaries, provides payment and financial services technology worldwide.The company operates through Acceptance, Fintech, and Payments segments.The Acceptance segment provides point-of-sale merchant acquiring and digital commerce services; mobile payment services; security and fraud protection products; Carat, an omnichannel commerce solution; Clover, a cloud-based point-of-sale and business management platform; and Clover Connect, an independent software vendors platform.


This segment distributes through various channels, including direct sales teams, strategic partnerships with agent sales forces, independent software vendors, financial institutions, and other strategic partners.The Fintech segment offers customer deposit and loan accounts, as well as manages an institution's general ledger and central information files.This segment also provides digital banking, financial and risk management, professional services and consulting, item processing and source capture, and other products and services.


The Payments segment offers card transactions, such as debit, credit, and prepaid card processing and services; security and fraud protection products; card production; print services; and various network services, as well as non-card digital payment software and services, including bill payment, account-to-account transfers, person-to-person payments, electronic billing, and security and fraud protection products.It serves business, banks, credit unions, other financial institutions, merchants, and corporate clients.Fiserv, Inc.


was incorporated in 1984 and is headquartered in Brookfield, Wisconsin.

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1.b. Last Insights on FI

Fiserv, Inc.'s recent performance was negatively impacted by disappointing Q3 2025 financial results, with earnings and revenue missing estimates. The company's guidance was drastically reduced, triggering concerns about its financial performance and investor confidence. Severe margin compression and weakness in Merchant and Financial Solutions segments were notable issues. Additionally, Fiserv's heavy debt, rising to $30 billion, and poor communication have raised red flags. An investigation into potential misled investors has been opened by Hagens Berman.

1.c. Company Highlights

2. Fiserv's Q4 2025 Earnings: A Review of Financial Performance

Fiserv reported a total company adjusted revenue of $4.9 billion, flat compared to the prior year, and adjusted operating income of $1.7 billion, resulting in an adjusted operating margin of 34.9%. The company's earnings per share (EPS) came in at $2.04, missing analyst estimates of $2.64. The company's free cash flow for the quarter was $1.6 billion and $4.44 billion for the year, ahead of its guidance of $4.25 billion.

Publication Date: Feb -11

📋 Highlights
  • Financial Solutions Adjusted Operating Income Drop:: Fell 20% to $997M in Q4, down 2% Y/Y to $4.4B, driven by higher vendor spend and headcount investments.
  • Clover Revenue Growth:: Surged 12% in Q4, but GPV growth lagged expectations due to U.S. restaurant/retail sector weakness in November 2025.
  • Free Cash Flow Performance:: $1.6B in Q4 and $4.44B for 2025, exceeding guidance of $4.25B, with 90% conversion of adjusted net income expected by year-end.
  • 2026 Revenue Guidance:: Organic growth projected at 1-3% (up mid-single digits for Merchant Solutions, flat-to-slight decline for Financial Solutions).
  • Zelle Transactions Momentum:: Grew 15% in Q4 2025, reflecting product maturity, while debit processing and network volumes showed strong growth.

Segment Performance

The Merchant Solutions segment grew 6% organically for the year, with Clover revenue growing 12% in Q4. However, Clover volume growth was below expectations, driven by softness in the U.S. in November. The Financial Solutions segment saw a decline in revenue, with adjusted operating income down 20% to $997 million in Q4. The segment's adjusted operating margin was 42.2% in Q4, down from 51.7% in the prior year.

Guidance and Outlook

Fiserv expects 2026 organic revenue growth in the range of 1% to 3%, with Merchant Solutions revenue growth in the mid-single digits and Financial Solutions flat to slightly down. The company also expects adjusted EPS of $8 to $8.30. As per Paul Todd, CFO, "We expect to exit the year with a leverage ratio of approximately 3x and free cash flow conversion of approximately 90% of adjusted net income for the year."

Valuation

With a P/E Ratio of 9.66 and an EV/EBITDA of 6.98, Fiserv's valuation appears reasonable. The company's ROE of 13.64% and ROIC of 8.04% indicate a decent return on equity and invested capital. However, the Net Debt / EBITDA ratio of 3.16x suggests a relatively high debt burden. Analysts estimate next year's revenue growth at 3.3%, which is within the company's guided range.

3. NewsRoom

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Fiserv to Present at Upcoming Investor Conferences

Mar -06

Source: globenewswire.com

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What's Behind The Rise In Fiserv Stock?

Feb -25

Source: benzinga.com

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Fiserv: A Great Turnaround Story In The Making

Feb -25

Source: seekingalpha.com

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Why Fiserv Stock Flopped Today

Feb -24

Source: fool.com

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Sell Fiserv Stock At $60?

Feb -23

Source: forbes.com

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Here's How Fiserv Stock Beats the Market From Here

Feb -23

Source: fool.com

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Is Fiserv an Underrated Financial Stock Investment Play?

Feb -19

Source: fool.com

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What I'm Watching With Fiserv to See if It Beats the Market

Feb -18

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.71%)

6. Segments

Merchant Solutions (Merchant)

Expected Growth: 8.1%

Growing demand for digital payments, increasing adoption of omnichannel payment solutions, and Fiserv’s strong market presence drive the growth of Fiserv Merchant Solutions’ payment processing segment.

Financial Solutions (Financial)

Expected Growth: 7.2%

Fiserv’s growth is driven by increasing adoption of digital payments, rising demand for omnichannel banking, and growing need for fraud prevention and risk management solutions.

Corporate and Other

Expected Growth: 8.5%

Fiserv's Corporate and Other segment is expected to grow driven by increasing demand for digital payment solutions, strategic partnerships, and expansion into new markets.

7. Detailed Products

First Data Merchant Services

Payment processing solutions for merchants, including credit/debit card processing, online payment gateways, and point-of-sale solutions.

Fiserv Account Processing

Core banking and account processing solutions for financial institutions, including deposit, loan, and credit card processing.

Fiserv Bill Pay

Electronic bill payment solutions for financial institutions and billers, enabling customers to pay bills online or through mobile devices.

Fiserv Card Services

Card issuance and management solutions for financial institutions, including credit, debit, and prepaid card programs.

Fiserv Digital Channels

Digital banking and online banking solutions for financial institutions, enabling customers to manage accounts, pay bills, and transfer funds online.

Fiserv Lending Solutions

Loan origination and servicing solutions for financial institutions, including auto, mortgage, and consumer lending.

Fiserv Payment Solutions

Payment processing and settlement solutions for financial institutions, including ACH, wire transfer, and card processing.

Fiserv Risk and Compliance

Risk management and compliance solutions for financial institutions, including fraud detection, anti-money laundering, and know-your-customer solutions.

8. Fiserv, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Fiserv, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

Fiserv, Inc. has a large customer base, but the bargaining power of customers is high due to the availability of alternative financial technology solutions.

Bargaining Power Of Suppliers

Fiserv, Inc. has a diversified supplier base, which reduces the bargaining power of suppliers, and the company's scale of operations also gives it negotiating power.

Threat Of New Entrants

The threat of new entrants in the financial technology industry is moderate, as there are barriers to entry such as regulatory hurdles and the need for significant investment in technology and infrastructure.

Intensity Of Rivalry

The financial technology industry is highly competitive, with many established players and new entrants vying for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.31%
Debt Cost 5.13%
Equity Weight 56.69%
Equity Cost 8.56%
WACC 7.08%
Leverage 76.38%

11. Quality Control: Fiserv, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Broadridge Financial Solutions

A-Score: 5.9/10

Value: 2.0

Growth: 7.0

Quality: 6.4

Yield: 4.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Cognizant

A-Score: 5.7/10

Value: 4.9

Growth: 4.7

Quality: 7.6

Yield: 3.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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IBM

A-Score: 5.7/10

Value: 1.8

Growth: 3.0

Quality: 6.0

Yield: 6.0

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
FIS

A-Score: 4.4/10

Value: 2.8

Growth: 3.6

Quality: 4.4

Yield: 5.0

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Fiserv

A-Score: 4.3/10

Value: 7.5

Growth: 8.1

Quality: 6.4

Yield: 0.0

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Gartner

A-Score: 4.2/10

Value: 3.5

Growth: 8.1

Quality: 8.0

Yield: 0.0

Momentum: 0.5

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

63.8$

Current Price

63.8$

Potential

-0.00%

Expected Cash-Flows