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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 Q3 Earnings: A Mixed Bag with Growth Reset

Fiserv's third-quarter 2025 earnings report presented a mixed picture, with the company posting total organic revenue growth of 1% and adjusted EPS of $2.04, which fell short of analyst estimates of $2.64. The company's adjusted revenue grew 1% to $4.9 billion, while adjusted operating income decreased 7% to $1.8 billion. The adjusted operating margin was 37%, a decrease of 320 basis points. The company's EPS was impacted by a $53 million foreign currency expense and a $31 million increase in interest expense.

Publication Date: Oct -30

📋 Highlights
  • Q3 2025 Organic Revenue Growth:: Total organic revenue rose 1% to $4.9 billion, with adjusted EPS at $2.04, down 11% YoY.
  • Clover GPV Growth:: Clover’s GPV grew 8% (reported) and 11% (ex-gateway conversion), but 2025 revenue guidance cut to $3.3B from $3.5B.
  • 2025 Guidance Revision:: Organic revenue growth now 3.5–4% (vs. prior 9–12% target), adjusted EPS $8.50–$8.60 (modest YoY decline).
  • 2026 Transition Year:: Expected low single-digit revenue growth, adjusted EPS down modestly vs. 2025, with margin trough in H1 2026 due to AI/tech investments.
  • Leadership & Strategic Shifts:: New Co-Presidents (Georgakopoulos, Suryadevara), CFO Paul Todd, and $1B in share buybacks announced, alongside $1B acquisitions in Q3.

Segment Performance

The Merchant Solutions segment reported organic revenue growth of 5% in the quarter and 7% year-to-date, driven by the Clover platform, which saw GPV grow 8% on a reported basis and 11% excluding the 2023-2024 gateway conversion. In contrast, the Financial Solutions segment reported an organic revenue decline of 3% in the quarter and growth of 3% year-to-date, with the growth rate dropping to negative 1% due to factors such as consolidating cores and comparisons to last year's strong performance.

Guidance Revision and Outlook

Fiserv revised its 2025 guidance, expecting 3.5% to 4% organic revenue growth and adjusted EPS of $8.50 to $8.60, representing a modest decline year-on-year. The company expects to return to mid-single-digit revenue growth and achieve double-digit adjusted EPS growth starting in 2027. Fiserv has a long-term growth outlook and aims to deliver compelling, innovative solutions to its clients.

Valuation and Growth Prospects

With a P/E Ratio of 10.6 and an EV/EBITDA of 8.14, Fiserv's valuation appears reasonable. The company's ROE is 13.97%, indicating a decent return on equity. Analysts estimate next year's revenue growth at 7.7%, which is higher than the company's current guidance. Fiserv's Clover revenue is expected to grow around 10% in the fourth quarter, and the company aims to expand its margins over time.

Leadership Changes and Strategic Focus

Fiserv has made significant leadership changes, including the appointment of new Co-Presidents, Takis Georgakopoulos and Dhivya Suryadevara, and a new CFO, Paul Todd. The company is focused on executing its One Fiserv action plan, which centers on investments in strategic areas such as operating with a client-first mindset, building the preeminent small business operating platform through Clover, and delivering operational excellence enabled by AI.

3. NewsRoom

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Fiserv execs bet $1.5 million on a turnaround, and the stock pops

Dec -03

Source: marketwatch.com

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Strong Black Friday Sales Highlight an Otherwise Flat November, According to Fiserv Small Business Index

Dec -03

Source: businesswire.com

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CLASS ACTION NOTICE: Berger Montague Advises Fiserv, Inc. (NYSE: FI) Investors to Inquire About a Securities Fraud Class Action

Dec -02

Source: prnewswire.com

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BAFS Announces Integration with Portico from Fiserv

Dec -02

Source: businesswire.com

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Fiserv, Inc. (FISV) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -02

Source: seekingalpha.com

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Fiserv Appoints Walter Pritchard as Senior Vice President, Head of Investor Relations

Dec -01

Source: businesswire.com

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2 Reasons to Load Up on Fiserv, 1 to Stay Away

Nov -28

Source: marketbeat.com

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Fiserv: The Guidance Cut Masks A Turnaround Opportunity

Nov -26

Source: seekingalpha.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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IBM

A-Score: 5.5/10

Value: 1.5

Growth: 3.0

Quality: 6.3

Yield: 6.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

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Cognizant

A-Score: 5.5/10

Value: 5.5

Growth: 4.8

Quality: 7.5

Yield: 3.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Gartner

A-Score: 4.3/10

Value: 4.1

Growth: 8.1

Quality: 7.7

Yield: 0.0

Momentum: 0.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
FIS

A-Score: 4.3/10

Value: 2.7

Growth: 3.6

Quality: 4.4

Yield: 5.0

Momentum: 2.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Fiserv

A-Score: 4.2/10

Value: 6.6

Growth: 8.1

Quality: 6.4

Yield: 0.0

Momentum: 1.0

Volatility: 3.3

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