Fiserv (FI) AI Stock Analysis

• Market Cap: $75.11B
• Dividend Yield: N/A
• Average Volume (3M): 5.85M
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.52
• Revenue Growth: 6.73%
• EPS Growth: 3.93%
• Country: US
• Employees: 38,000
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): 2.47
• Shares Outstanding: 543,593,200
• 10 Day Avg. Volume: 4,010,328
• 30 Day Avg. Volume: 5,852,000
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 5.90
• Enterprise Value/Gross Profit: 9.65
• Enterprise Value/Ebitda: 13.39
• 1Y Price Target: $188.36
• Price Target Upside: 37.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 24

• Rating: 70 Outperform
• Price Target: $151.00 ▲(10.40% Upside)

Fiserv's overall stock score reflects its strong financial performance and strategic corporate actions, offset by mixed technical indicators and valuation concerns. The company's robust earnings growth and shareholder returns are significant strengths, while revised growth guidance and macroeconomic challenges pose risks.

Positive Factors

Clover Revenue Growth

Clover revenue growth accelerated to 30% (from 27% in 1Q25).

Earnings Growth

Still see FI as a mid-to-high teens EPS grower that can garner a better multiple.

Long-term Growth Potential

There is confidence in the long-term growth potential of Clover, with expectations for international growth, back-book conversion opportunities, and significant upside in VAS penetration.

Negative Factors

Investor Confidence

A string of consecutive quarterly surprises, coupled with its ongoing CEO transition, has left investors increasingly uneasy about execution and communication.

Organic Revenue Growth Deceleration

Merchant processing segment experienced sharp organic revenue growth deceleration, to 9% in the first half of 2025 from nearly 20% in the first half of 2024.

Revenue Guidance Reduction

FI lowered revenue guidance across the board.

Fiserv Business Overview & Revenue Model

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.

How the Company Makes Money

Fiserv generates revenue primarily through a subscription-based model and transaction-based fees. Key revenue streams include payment processing services, which account for a significant portion of its earnings by charging fees for each transaction processed. Additionally, Fiserv earns revenue from its software solutions and technology services, which are sold on a subscription basis to financial institutions. Partnerships with banks and credit unions enhance its market reach and provide a steady income stream through long-term contracts. The company's continuous innovation in digital banking and payments also contributes to revenue growth, as it attracts more clients looking for advanced technological solutions.

Fiserv Financial Statement Overview

Summary

Fiserv exhibits strong financial performance with consistent revenue growth, healthy profitability margins, and robust cash flow generation. The balance sheet reflects moderate leverage and strong equity returns, positioning the company well for future growth and stability.

Income Statement

Fiserv demonstrates strong revenue growth, with a TTM revenue of $21.11 billion, reflecting a 3.21% increase from the previous year. The gross profit margin stands at 61.13%, and the net profit margin is 16.01%, indicating healthy profitability. EBIT and EBITDA margins are solid at 30.13% and 44.04% respectively, showcasing efficient operational management.

Balance Sheet

The company maintains a stable balance sheet with a debt-to-equity ratio of 1.18, indicating moderate leverage. The equity ratio is 30.94%, reflecting a balanced capital structure. Return on equity (ROE) is robust at 13.40%, highlighting strong shareholder returns.

Cash Flow

Fiserv's cash flow position is strong, with a TTM free cash flow of $5.97 billion, showing a 17.97% growth from the previous year. The operating cash flow to net income ratio is 2.00, and the free cash flow to net income ratio is 1.77, indicating efficient cash generation relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.46B	19.09B	17.74B	16.23B	14.85B
Gross Profit	12.44B	11.43B	9.74B	8.10B	7.04B
EBITDA	8.84B	8.02B	6.83B	5.56B	5.10B
Net Income	3.13B	3.07B	2.53B	1.33B	958.00M
Balance Sheet
Total Assets	77.18B	90.89B	83.87B	76.25B	74.62B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.20B	902.00M	835.00M	906.00M
Total Debt	24.96B	23.90B	21.54B	21.24B	20.68B
Total Liabilities	49.49B	60.22B	52.18B	44.30B	41.29B
Stockholders Equity	27.07B	29.86B	30.83B	30.95B	32.33B
Cash Flow
Free Cash Flow	5.06B	3.77B	3.14B	2.87B	3.25B
Operating Cash Flow	6.63B	5.16B	4.62B	4.03B	4.15B
Investing Cash Flow	-2.40B	-1.07B	-2.11B	-1.63B	-341.00M
Financing Cash Flow	-4.17B	-4.36B	-2.48B	-761.00M	-3.84B

Fiserv Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 136.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FI, the sentiment is Negative. The current price of 136.77 is above the 20-day moving average (MA) of 136.42, below the 50-day MA of 150.26, and below the 200-day MA of 189.91, indicating a neutral trend. The MACD of -2.74 indicates Negative momentum. The RSI at 37.75 is Neutral, neither overbought nor oversold. The STOCH value of 44.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FI.

Fiserv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BR	76 Outperform	$29.94B	35.51	34.81%	1.41%	5.88%	20.69%
INFY	75 Outperform	$70.71B	21.84	30.46%	3.05%	4.52%	-0.22%
CTSH	74 Outperform	$35.29B	14.58	16.69%	1.71%	6.34%	12.16%
WIT	73 Outperform	$29.77B	20.78	16.50%	2.99%	-1.95%	35.65%
FI	70 Outperform	$75.11B	22.86	12.66%	―	6.73%	3.93%
JKHY	68 Neutral	$11.90B	25.77	22.94%	1.40%	7.21%	19.35%
Sector *	61 Neutral	$35.09B	8.26	-10.59%	1.90%	8.56%	-9.51%

Fiserv Corporate Events

Fiserv Announces Leadership Change in Financial Group

On August 25, 2025, Fiserv, Inc. announced a leadership change within its Financial Institutions Group, with John Gibbons transitioning from Co-Head to Senior Advisor, a role he will hold until February 28, 2026. Andrew Gelb, previously Co-Head alongside Gibbons, will take over as the Head of the Financial Institutions Group, signaling a strategic shift in leadership within the company.

Fiserv Enters New Credit Agreement with JPMorgan

On August 12, 2025, Fiserv, Inc. entered into a new Credit Agreement with JPMorgan Chase Bank, replacing its prior agreement from June 16, 2022. This move, involving Fiserv Funding Unlimited Company, signifies a strategic financial restructuring, as the previous $6 billion revolving credit facility was voluntarily terminated, reflecting Fiserv’s evolving financial strategy and operational adjustments.

Fiserv Completes $2 Billion Senior Notes Issuance

On August 11, 2025, Fiserv, Inc. completed the issuance of $2 billion in senior notes, divided equally between 4.550% notes due in 2031 and 5.250% notes due in 2035. This strategic financial move is likely to impact Fiserv’s operational capabilities and market positioning, offering flexibility in managing its debt and potentially enhancing its financial stability.

Fiserv Announces $2 Billion Senior Notes Offering

On August 4, 2025, Fiserv, Inc. entered into an Underwriting Agreement with several underwriters for the sale of $2 billion in senior notes, split between 4.550% Senior Notes due 2031 and 5.250% Senior Notes due 2035. This public offering, expected to close on August 11, 2025, is part of Fiserv’s strategic financial operations, potentially impacting its market position and stakeholder interests by enhancing its capital structure.