Fiserv’s Q4 results were met positively by the market as management emphasized stable, broad-based business activity and highlighted execution on its strategic initiatives. CEO Michael Lyons noted that “Q4 results demonstrated stable broad-based business activity trends,” with particular focus on investment in client service and technology modernization. Management attributed the flat sales performance to a mix of industry-wide softness in segments like U.S. restaurant and retail, as well as deliberate decisions to invest in long-term growth and customer retention. Despite these near-term headwinds, Fiserv saw notable contributions from both its Merchant and Financial Solutions segments and continued to win new and expanded client agreements.
Is now the time to buy FISV? Find out in our full research report (it’s free for active Edge members).
Fiserv (FISV) Q4 CY2025 Highlights:
- Revenue: $4.9 billion vs analyst estimates of $4.91 billion (flat year on year, in line)
- Adjusted EPS: $1.99 vs analyst estimates of $1.90 (4.6% beat)
- Adjusted EBITDA: $2.20 billion vs analyst estimates of $2.14 billion (44.9% margin, 2.8% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $8.15 at the midpoint, missing analyst estimates by 0.6%
- Operating Margin: 26.3%, down from 34% in the same quarter last year
- Organic Revenue was flat year on year (miss)
- Market Capitalization: $31.93 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Fiserv’s Q4 Earnings Call
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Darrin Peller (Wolfe Research) asked whether Fiserv’s business review had revealed any new risks. CEO Michael Lyons replied there were no new surprises and reiterated that current guidance reflects a clear understanding of challenges and required execution steps.
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Timothy Chiodo (UBS) inquired about digital payments pricing actions and their impact on volume. CFO Paul Todd responded that no new changes occurred in Q4 but highlighted sequential improvement in network volumes, particularly in debit processing, despite ongoing headwinds.
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David Koning (Baird) questioned expectations for non-Clover small business growth and Argentina’s impact. CFO Paul Todd explained that non-Clover SMB is expected to be roughly flat or slightly up in 2026, with Argentina no longer a significant growth factor.
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Andrew Jeffrey (William Blair) sought clarity on Clover’s yield progression and value-added services contribution. CEO Michael Lyons emphasized that expanding vertical solutions and embedding more services in Clover should drive higher yields over time.
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Jason Kupferberg (Wells Fargo) asked what drove the improvement in Clover volumes in December and January. CEO Michael Lyons attributed it to the normalization of macro trends and the impact of new vertical initiatives, noting that volumes rebounded after November softness.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the pace of adoption and yield improvement in Clover’s new vertical and value-added services, (2) the stabilization and recovery of Financial Solutions growth as core modernization efforts take effect, and (3) the realization of operational efficiencies and expense containment under Project Elevate. Execution in these areas will be key to Fiserv’s ability to achieve its multi-quarter growth and margin goals.
Fiserv currently trades at $59.70, in line with $60.14 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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