Fiserv (FISV)
NASDAQ:FISV
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Fiserv
(NASDAQ:FISV)
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Rating:68Neutral
Price Target:
$59.00
▲(5.19% Upside)
Action:ReiteratedDate:02/22/26
The score is driven by strong underlying financial performance (revenue growth, solid margins, and strong free cash flow) and a low P/E valuation, partially offset by clearly bearish technicals and earnings-call guidance that suggests near-term revenue/margin pressure and continued transformation costs.
Positive Factors
Free Cash Flow Strength
Consistent, large free cash flow gives Fiserv durable financial flexibility: it funds buybacks, debt paydown, capex and transformation without relying on external financing. Strong conversion of earnings to cash supports investment in platforms and cushions near-term margin pressures.
Negative Factors
Increasing Leverage
Rising absolute debt and weaker equity reduce financial flexibility and increase sensitivity to higher interest rates. Higher leverage can constrain strategic optionality, elevate refinancing risk over multiple quarters, and limit capacity for opportunistic M&A or sustained buybacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Consistent, large free cash flow gives Fiserv durable financial flexibility: it funds buybacks, debt paydown, capex and transformation without relying on external financing. Strong conversion of earnings to cash supports investment in platforms and cushions near-term margin pressures.
Read all positive factors
Fiserv (FISV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.00B
Dividend YieldN/A
Average Volume (3M)6.14M
Price to Earnings (P/E)10.6
Beta (1Y)0.49
Revenue Growth5.16%
EPS Growth24.92%
CountryUS
Employees38,000
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.99
Shares Outstanding534,777,500
10 Day Avg. Volume5,835,976
30 Day Avg. Volume6,136,512
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)1.43
Price to Sales (P/S)1.74
P/FCF Ratio8.49
Enterprise Value/Market Cap1.99
Enterprise Value/Revenue2.81
Enterprise Value/Gross Profit4.74
Enterprise Value/Ebitda6.64
Forecast
1Y Price Target
$73.12Price Target Upside30.36% Upside
Rating ConsensusHold
Number of Analyst Covering22
EPS Forecast (FY)8.11
Revenue Forecast (FY)$20.11B
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 a...
How the Company Makes Money
Fiserv primarily generates revenue by charging customers for payment processing and financial-technology services across its two reportable segments: Merchant Solutions and Financial Solutions. In Merchant Solutions, the company earns money from c...
Fiserv Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call presented a mix of constructive operational progress and product/innovation milestones (notably strong Clover momentum, Commerce Hub and Finxact growth, cash flow and EPS outperformance, strategic client wins and acquisitions) alongside meaningful near-term challenges (Financial Solutions revenue and margin declines, banking client attrition, Project Elevate one-time costs, and expected margin pressure in H1 2026). Management reiterated a clear multi-quarter plan, provided 2026 guidance in line with prior expectations, and emphasized investments to stabilize and modernize core businesses while pursuing growth opportunities.Positive Updates
Total Company Revenue and Profitability
Q4 adjusted revenue of $4.9B (flat YoY) and Q4 adjusted operating income of $1.7B (adjusted operating margin 34.9%). Full-year adjusted revenue $19.8B, up 4% YoY, with full-year adjusted operating income $7.4B and adjusted operating margin of 37.4% (down 200 bps YoY).
Negative Updates
Financial Solutions Revenue and Margin Pressure
Financial Solutions organic and adjusted revenue declined 2% in Q4. Q4 adjusted operating income for Financial Solutions declined 20% to $997M and adjusted operating margin dropped to 42.2% from 51.7% a year ago, driven largely by incremental vendor spend and headcount investments.
Read all updates
Q4-2025 Updates
Positive
Negative
Total Company Revenue and Profitability
Q4 adjusted revenue of $4.9B (flat YoY) and Q4 adjusted operating income of $1.7B (adjusted operating margin 34.9%). Full-year adjusted revenue $19.8B, up 4% YoY, with full-year adjusted operating income $7.4B and adjusted operating margin of 37.4% (down 200 bps YoY).
Read all positive updates
Company Guidance
Fiserv guided 2026 organic revenue growth of 1%–3% (adjusted revenue also guided ~1%–3% after expected FX and M&A offsets), with Merchant Solutions growing mid‑single digits and Financial Solutions flat to slightly down; they expect adjusted revenue in 1H to decline to low single digits (Q2 the trough) and note Q1 is the last quarter of CCV impact (~1 point difference between organic and adjusted). Full‑year adjusted EPS is $8.00–$8.30 on ~530 million weighted average shares, with an adjusted operating margin of ~34% for the year (1H: 31%–32% with Q1 just below 30%; 2H: 35%–36% with Q4 the high point), an effective tax rate of ~19%–19.5%, year‑end leverage of ~3.0x (long‑term target 2.5–3x), capex roughly flat to 2025, and free‑cash‑flow conversion ~90% of adjusted net income (Q1 is the trough). They also flagged continued one‑time Project Elevate costs, expect Argentina to be modestly positive to organic but slightly negative to adjusted revenue, and gave Clover targets of 10%–15% GPV growth in 2026 ex gateway conversion (Clover revenue in the low double‑digits for 2026; medium‑term Clover revenue growth target 15%–20%).Fiserv Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
68
Positive
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 21.19B | 20.46B | 19.09B | 17.74B | 16.23B |
| Gross Profit | 12.58B | 12.44B | 11.43B | 9.74B | 8.10B |
| EBITDA | 8.96B | 8.84B | 8.02B | 6.83B | 5.56B |
| Net Income | 3.48B | 3.13B | 3.07B | 2.53B | 1.33B |
Balance Sheet | |||||
| Total Assets | 80.13B | 77.18B | 90.89B | 83.87B | 76.25B |
| Cash, Cash Equivalents and Short-Term Investments | 798.00M | 1.24B | 1.20B | 902.00M | 835.00M |
| Total Debt | 29.00B | 24.96B | 23.90B | 21.54B | 21.24B |
| Total Liabilities | 54.32B | 49.49B | 60.22B | 52.18B | 44.30B |
| Stockholders Equity | 25.79B | 27.07B | 29.86B | 30.83B | 30.95B |
Cash Flow | |||||
| Free Cash Flow | 4.34B | 5.06B | 3.77B | 3.14B | 2.87B |
| Operating Cash Flow | 6.10B | 6.63B | 5.16B | 4.62B | 4.03B |
| Investing Cash Flow | -3.00B | -2.40B | -1.07B | -2.11B | -1.63B |
| Financing Cash Flow | -3.40B | -4.17B | -4.36B | -2.48B | -761.00M |
Fiserv Technical Analysis
Negative
56.09
Price Trends
59.17
Negative
62.55
Negative
96.91
Negative
Market Momentum
-1.08
Negative
44.14
Neutral
63.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FISV, the sentiment is Negative. The current price of 56.09 is below the 20-day moving average (MA) of 56.33, below the 50-day MA of 59.17, and below the 200-day MA of 96.91, indicating a bearish trend. The MACD of -1.08 indicates Negative momentum. The RSI at 44.14 is Neutral, neither overbought nor oversold. The STOCH value of 63.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FISV.
Fiserv Risk Analysis
Fiserv disclosed 36 risk factors in its most recent earnings report. Fiserv reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The One Fiserv action plan may not generate the benefits that we anticipate. Q4, 2025
2.
We make significant investments in emerging, innovative areas of financial services and technology that may not achieve expected returns. Q4, 2025
3.
We use artificial intelligence in our business, and challenges with properly managing its use could result in legal liability or reputational harm. Q4, 2025
Fiserv Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $10.62B | 26.50 | 23.75% | 1.25% | 7.75% | 20.42% | |
73 Outperform | $55.27B | 24.55 | 29.68% | 2.58% | 4.62% | 1.06% | |
72 Outperform | $17.64B | 22.90 | 41.06% | 1.63% | 8.57% | 35.02% | |
68 Neutral | $30.00B | 10.60 | 13.64% | ― | 5.16% | 24.92% | |
68 Neutral | $27.70B | 17.90 | 14.84% | 1.46% | 7.44% | -4.57% | |
67 Neutral | $22.64B | 21.25 | 15.49% | 2.78% | -1.97% | 48.61% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
FISV
Fiserv
56.09
-156.15
-73.57%
BR
Broadridge Financial Solutions
151.12
-81.36
-35.00%
CTSH
Cognizant
57.92
-11.65
-16.74%
INFY
Infosys
13.29
-3.30
-19.91%
JKHY
Jack Henry & Associates
147.20
-24.28
-14.16%
WIT
Wipro
2.17
-0.57
-20.72%
Fiserv Corporate Events
Business Operations and StrategyExecutive/Board Changes
Fiserv Grants CEO Supplemental Equity to Drive Transformation
Positive
Feb 20, 2026
On February 18, 2026, the independent directors of Fiserv awarded Chief Executive Officer Michael P. Lyons a supplemental equity package of performance share units and restricted stock units, underscoring the board’s view of his central role...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.