Fiserv Q4 Earnings Beat Expectations with $1.99 EPS
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy FISV?
Source: seekingalpha
- Earnings Beat: Fiserv reported a Q4 non-GAAP EPS of $1.99, exceeding expectations by $0.09, while total revenue remained flat at $4.9 billion year-over-year, indicating stable profitability amidst challenging market conditions.
- Stagnant Revenue Growth: The organic revenue growth for Q4 2025 was flat, with a 1% increase in the Merchant Solutions segment and a 2% decline in the Financial Solutions segment, reflecting intensified market competition and weak demand.
- Annual Performance Review: For the full year 2025, organic revenue growth was 4%, with 6% growth in Merchant Solutions and 2% in Financial Solutions, showing improvement but still falling short of market expectations, highlighting the complexities within the industry.
- Declining Profitability: Adjusted EPS decreased by 21% year-over-year, with adjusted operating margins at 34.9% and 37.4% for Q4 and the full year, respectively, down from 42.9% and 39.4% in 2024, indicating cost pressures and challenges to profitability.
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Analyst Views on FISV
Wall Street analysts forecast FISV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FISV is 95.61 USD with a low forecast of 62.00 USD and a high forecast of 180.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Analyst Rating
8 Buy
20 Hold
0 Sell
Moderate Buy
Current: 60.140
Low
62.00
Averages
95.61
High
180.00
Current: 60.140
Low
62.00
Averages
95.61
High
180.00
About FISV
Fiserv, Inc. is a global provider of payments and financial services technology solutions. Its segments include Merchant Solutions (Merchant) and Financial Solutions (Financial). The businesses in its Merchant segment provide commerce-enabling products and services to companies of all sizes around the world. These products and services include merchant acquiring and digital commerce services; mobile payment services; security and fraud protection solutions; stored-value solutions; software-as-a-service; POS devices; and pay-by-bank solutions. The business lines in its Merchant segment consist of small business, enterprise, and processing. The businesses in its Financial segment provide products and services to financial institutions, corporate and public sector clients across the world, enabling the processing of customer loan and deposit accounts, digital payments and card transactions. The business lines in its Financial segment consist of digital payments, issuing, and banking.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Fiserv Set to Announce Q4 Earnings on February 10th
- Earnings Announcement Date: Fiserv is scheduled to release its Q4 earnings on February 10th before market open, with consensus EPS estimate at $1.90, reflecting a significant year-over-year decline of 24.3%, indicating potential profitability challenges.
- Flat Revenue Expectations: The revenue estimate stands at $4.9 billion, flat year-over-year, highlighting the company's struggle with revenue growth, which may impact investor confidence regarding its future growth potential.
- Historical Performance Review: Over the past two years, Fiserv has beaten EPS estimates 88% of the time, but only 50% for revenue estimates, suggesting a relatively stable performance in earnings but volatility in revenue growth.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 3 upward revisions and 6 downward, while revenue estimates have experienced 2 upward revisions and 8 downward, reflecting analysts' cautious outlook and divergence regarding the company's future performance.
See More
Fiserv Q4 Earnings Beat Expectations with $1.99 EPS
- Earnings Beat: Fiserv reported a Q4 non-GAAP EPS of $1.99, exceeding expectations by $0.09, while total revenue remained flat at $4.9 billion year-over-year, indicating stable profitability amidst challenging market conditions.
- Stagnant Revenue Growth: The organic revenue growth for Q4 2025 was flat, with a 1% increase in the Merchant Solutions segment and a 2% decline in the Financial Solutions segment, reflecting intensified market competition and weak demand.
- Annual Performance Review: For the full year 2025, organic revenue growth was 4%, with 6% growth in Merchant Solutions and 2% in Financial Solutions, showing improvement but still falling short of market expectations, highlighting the complexities within the industry.
- Declining Profitability: Adjusted EPS decreased by 21% year-over-year, with adjusted operating margins at 34.9% and 37.4% for Q4 and the full year, respectively, down from 42.9% and 39.4% in 2024, indicating cost pressures and challenges to profitability.
See More
Fiserv Issues Weaker-Than-Expected 2026 Guidance, Stock Drops
- Guidance Downgrade: Fiserv's 2026 EPS guidance of $8.00-$8.30 (midpoint $8.15) falls short of the $8.20 analyst consensus, indicating a cautious outlook that may undermine investor confidence in the company's growth trajectory.
- Q4 Financial Performance: The company reported Q4 adjusted EPS of $1.99, exceeding the $1.90 consensus, yet down from $2.04 in Q3 and $2.51 in Q4 2024, reflecting a decline in profitability that raises concerns about future earnings stability.
- Revenue Growth Slowdown: Q4 adjusted revenue of $4.90 billion matched expectations but decreased from $4.92 billion in the previous quarter, highlighting increased competitive pressure, particularly with a 2% decline in Financial Solutions revenue.
- Rising Costs Impacting Margins: Total expenses reached $3.99 billion, surpassing the $3.93 billion estimate, leading to an adjusted operating margin of 34.9%, down from 37.0% in Q3 and 42.9% a year ago, indicating challenges in cost management and operational efficiency.
See More
Fiserv's 2026 Earnings Guidance Falls Short of Expectations
- Guidance Downgrade: Fiserv forecasts its 2026 adjusted earnings per share (EPS) to be between $8 and $8.3, with a midpoint of $8.15, which falls short of Wall Street's expectation of $8.2, indicating potential pressure on future profitability.
- Stable Q4 Performance: The company reported an adjusted EPS of $1.99 on revenue of $4.9 billion in Q4, aligning with Wall Street's estimates of $1.9 EPS and $4.9 billion revenue, demonstrating stability in the current market environment.
- Strong Market Sentiment: Despite the disappointing guidance, retail sentiment around Fiserv remains in the 'extremely bullish' territory, with message volumes at 'extremely high' levels, indicating strong investor confidence in the company's future.
- Executive Commentary: CFO Paul Todd noted that the fourth-quarter results and 2026 guidance are consistent with what was outlined in October, emphasizing the company's transparency and consistency in facing market challenges.
See More
Fiserv Reports Decline in Q4 Profit
- Profit Decline: Fiserv reported a fourth-quarter profit of $811 million, or $1.51 per share, down from $938 million and $1.64 per share last year, indicating a weakening in profitability that may affect investor confidence.
- Adjusted Earnings: Excluding items, Fiserv's adjusted earnings were $1.066 billion, or $1.99 per share, showing relative stability in adjusted performance, yet the overall profit decline raises concerns about future growth prospects.
- Revenue Growth: The company's revenue for the fourth quarter rose by 0.6% to $5.284 billion from $5.251 billion last year, suggesting that while revenue is increasing, the profit drop may indicate issues with cost control or intensified market competition.
- Market Reaction Outlook: Given the profit decline and lackluster revenue growth, the market may adopt a cautious stance towards Fiserv's future performance, prompting investors to closely monitor how the company addresses the challenges of declining profitability.
See More
Fiserv Reports Q4 Profit Exceeding Expectations Amidst Leadership Changes
- Profit Exceeds Expectations: Fiserv reported an adjusted earnings per share of $1.99 for Q4, surpassing the market expectation of $1.90, demonstrating effective expense management despite muted revenue growth, indicating resilience in challenging times.
- Stock Price Recovery: Following the earnings report, Fiserv's shares rose 3% in premarket trading, reflecting a positive market reaction to its financial performance, although the stock has plummeted 74% over the past year, suggesting cautious optimism among investors regarding future recovery.
- Strategic Transition: The company anticipates 2026 to be a transitional year, planning investments in key strategic areas to address service gaps, with full-year adjusted earnings per share forecasted between $8 and $8.30, showcasing management's confidence in future growth.
- Share Buyback: Fiserv repurchased $200 million worth of shares in Q4, indicating its commitment to enhancing shareholder value while striving to improve financial performance and bolster market confidence.
See More
Fiserv Set to Announce Q4 Earnings on February 10th
- Earnings Announcement Date: Fiserv is scheduled to release its Q4 earnings on February 10th before market open, with consensus EPS estimate at $1.90, reflecting a significant year-over-year decline of 24.3%, indicating potential profitability challenges.
- Flat Revenue Expectations: The revenue estimate stands at $4.9 billion, flat year-over-year, highlighting the company's struggle with revenue growth, which may impact investor confidence regarding its future growth potential.
- Historical Performance Review: Over the past two years, Fiserv has beaten EPS estimates 88% of the time, but only 50% for revenue estimates, suggesting a relatively stable performance in earnings but volatility in revenue growth.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 3 upward revisions and 6 downward, while revenue estimates have experienced 2 upward revisions and 8 downward, reflecting analysts' cautious outlook and divergence regarding the company's future performance.
See More
Fiserv Q4 Earnings Beat Expectations with $1.99 EPS
- Earnings Beat: Fiserv reported a Q4 non-GAAP EPS of $1.99, exceeding expectations by $0.09, while total revenue remained flat at $4.9 billion year-over-year, indicating stable profitability amidst challenging market conditions.
- Stagnant Revenue Growth: The organic revenue growth for Q4 2025 was flat, with a 1% increase in the Merchant Solutions segment and a 2% decline in the Financial Solutions segment, reflecting intensified market competition and weak demand.
- Annual Performance Review: For the full year 2025, organic revenue growth was 4%, with 6% growth in Merchant Solutions and 2% in Financial Solutions, showing improvement but still falling short of market expectations, highlighting the complexities within the industry.
- Declining Profitability: Adjusted EPS decreased by 21% year-over-year, with adjusted operating margins at 34.9% and 37.4% for Q4 and the full year, respectively, down from 42.9% and 39.4% in 2024, indicating cost pressures and challenges to profitability.
See More
Fiserv Issues Weaker-Than-Expected 2026 Guidance, Stock Drops
- Guidance Downgrade: Fiserv's 2026 EPS guidance of $8.00-$8.30 (midpoint $8.15) falls short of the $8.20 analyst consensus, indicating a cautious outlook that may undermine investor confidence in the company's growth trajectory.
- Q4 Financial Performance: The company reported Q4 adjusted EPS of $1.99, exceeding the $1.90 consensus, yet down from $2.04 in Q3 and $2.51 in Q4 2024, reflecting a decline in profitability that raises concerns about future earnings stability.
- Revenue Growth Slowdown: Q4 adjusted revenue of $4.90 billion matched expectations but decreased from $4.92 billion in the previous quarter, highlighting increased competitive pressure, particularly with a 2% decline in Financial Solutions revenue.
- Rising Costs Impacting Margins: Total expenses reached $3.99 billion, surpassing the $3.93 billion estimate, leading to an adjusted operating margin of 34.9%, down from 37.0% in Q3 and 42.9% a year ago, indicating challenges in cost management and operational efficiency.
See More
Fiserv's 2026 Earnings Guidance Falls Short of Expectations
- Guidance Downgrade: Fiserv forecasts its 2026 adjusted earnings per share (EPS) to be between $8 and $8.3, with a midpoint of $8.15, which falls short of Wall Street's expectation of $8.2, indicating potential pressure on future profitability.
- Stable Q4 Performance: The company reported an adjusted EPS of $1.99 on revenue of $4.9 billion in Q4, aligning with Wall Street's estimates of $1.9 EPS and $4.9 billion revenue, demonstrating stability in the current market environment.
- Strong Market Sentiment: Despite the disappointing guidance, retail sentiment around Fiserv remains in the 'extremely bullish' territory, with message volumes at 'extremely high' levels, indicating strong investor confidence in the company's future.
- Executive Commentary: CFO Paul Todd noted that the fourth-quarter results and 2026 guidance are consistent with what was outlined in October, emphasizing the company's transparency and consistency in facing market challenges.
See More
Fiserv Reports Decline in Q4 Profit
- Profit Decline: Fiserv reported a fourth-quarter profit of $811 million, or $1.51 per share, down from $938 million and $1.64 per share last year, indicating a weakening in profitability that may affect investor confidence.
- Adjusted Earnings: Excluding items, Fiserv's adjusted earnings were $1.066 billion, or $1.99 per share, showing relative stability in adjusted performance, yet the overall profit decline raises concerns about future growth prospects.
- Revenue Growth: The company's revenue for the fourth quarter rose by 0.6% to $5.284 billion from $5.251 billion last year, suggesting that while revenue is increasing, the profit drop may indicate issues with cost control or intensified market competition.
- Market Reaction Outlook: Given the profit decline and lackluster revenue growth, the market may adopt a cautious stance towards Fiserv's future performance, prompting investors to closely monitor how the company addresses the challenges of declining profitability.
See More
Fiserv Reports Q4 Profit Exceeding Expectations Amidst Leadership Changes
- Profit Exceeds Expectations: Fiserv reported an adjusted earnings per share of $1.99 for Q4, surpassing the market expectation of $1.90, demonstrating effective expense management despite muted revenue growth, indicating resilience in challenging times.
- Stock Price Recovery: Following the earnings report, Fiserv's shares rose 3% in premarket trading, reflecting a positive market reaction to its financial performance, although the stock has plummeted 74% over the past year, suggesting cautious optimism among investors regarding future recovery.
- Strategic Transition: The company anticipates 2026 to be a transitional year, planning investments in key strategic areas to address service gaps, with full-year adjusted earnings per share forecasted between $8 and $8.30, showcasing management's confidence in future growth.
- Share Buyback: Fiserv repurchased $200 million worth of shares in Q4, indicating its commitment to enhancing shareholder value while striving to improve financial performance and bolster market confidence.
See More
