Fiserv, Inc (NYSE:FISV) stock gained on Tuesday after its mixed fiscal fourth-quarter 2025 results and guidance.
The company reported adjusted quarterly revenue of $4.90 billion, missing the analyst consensus estimate of $4.96 billion.
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Adjusted revenue remained flat year-over-year. The quarterly GAAP revenue rose 1% Y/Y to $5.28 billion.
The financial technology and services provider’s adjusted EPS of $1.99 beat the analyst consensus estimate of $1.90. The quarterly adjusted EPS decreased by 21% over the same period last year.
Growth was 2% in the Merchant Solutions segment and 2% decline in the Financial Solutions segment. Organic revenue was flat in the quarter, with 1% growth in the Merchant Solutions segment and a 2% decline in the Financial Solutions segment.
Profit Margins Contract
Fiserv is facing margin pressure due to slowing organic revenue growth, especially in its Merchant Solutions and Financial Solutions segments, as well as the increased investment needed for technology and strategic restructuring.
The adjusted operating margin decreased by 800 bps Y/Y to 34.9%. Adjusted operating margin decreased 710 basis points Y/Y to 32.1% in the Merchant Solutions segment. The margin declined 950 bps Y/Y to 42.2% in the Financial Solutions segment.
The company generated $1.94 billion in operating cash flow for the quarter. It produced $1.56 billion in free cash flow for the quarter.
The company repurchased 3.1 million shares of common stock for $200 million in the quarter.
CEO Mike Lyons emphasized strengthening forecasting and moving away from the previous leadership’s focus on short-term growth strategies, according to Reuters.
Fiserv had previously increased its debit transaction pricing, boosting short-term earnings but hindering long-term client acquisition; it has since rolled back some of those changes.
Outlook
Fiserv expects organic revenue growth of 1% to 3% and adjusted EPS of $8-$8.30 against an analyst consensus estimate of $8.19 for 2026.
FISV Price Action: Fiserv stock is up 5% to $63.15 at publication on Tuesday.
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