Snapshot
Fiserv Inc reported $5.28B of revenue in Q4 2025, up 0.6% year over year, with diluted EPS of $1.51 and an operating margin of 24.4%.
- Revenue
- $5.28B
- YoY growth
- +0.6%
- Diluted EPS
- $1.51
- Operating margin
- 24.4%
What management said
- •Our earnings release and supplemental materials for the quarter are available on the Investor Relations section of Fiserv.com.
- •You should refer to our earnings release for a discussion of these risk factors.
- •Over time, we expect this shift to enhance client satisfaction and ultimately drive sustainable growth in average revenue per customer, which has been a hallmark of Fiserv.
- •On Optis, we signed a multi-year extension with our client, Atlanticus, a leading issuer, which includes converting the accounts they recently added with their Mercury Financial acquisition to Fiserv.
- •In December, we integrated CashFlow Central, our transformative AR/AP product, directly into RUN Powered by ADP, allowing small businesses to manage their cash flow more effectively.
- •Canada grew strongly in 2025 and should further accelerate as we ramp up our new strategic relationship with TD.
- •I will cover details on total company and segment performance in the fourth quarter and full year and then review our guidance for 2026.
- •Beginning on slide six, total company Q4 adjusted revenue of $4.9 billion was flat, and adjusted operating income was $1.7 billion, resulting in adjusted operating margin of 34.9%.
- •Turning to slide seven, Merchant Solutions grew 6% organically for the year, while Financial Solutions grew 2%.
- •Fourth quarter adjusted earnings per share was $1.99, resulting in annual adjusted earnings per share of $8.64, above our guidance range of $8.50-$8.60.
- •Free cash flow for the quarter was $1.6 billion and $4.44 billion for the year, ahead of our guidance of $4.25 billion, representing approximately 93% conversion.
- •Now I will turn to the performance by segment for Q4 starting on slide eight on Merchant Solutions.
What went well
- •Full-year 2025 adjusted revenue was $19.8 billion, up 4%, with adjusted earnings per share of $8.64 finishing above the $8.50-$8.60 guidance range and annual organic revenue growth of 3.8% landing in the upper half of the prior 3.5%-4% range.
- •Free cash flow was $4.44 billion for the year, ahead of the $4.25 billion guidance and representing roughly 93% conversion, while Q4 free cash flow was $1.6 billion.
- •Clover revenue grew 12% in Q4 (two points above guidance) and finished the year at $3.3 billion, up 23%, with value-added services contributing 27% of Clover revenue, up five points year over year, and Clover Capital growing 30% in North America at only mid-single-digit penetration.
- •Corporate sales rose solidly in Q4 versus both last year and the prior quarter across Merchant and Financial Solutions, with notable wins including Commerce Hub agreements with AT&T and a large medical device company, Mechanics Bancorp selecting the core plus XD digital platform, a new DNA core deal with Republic Bank & Trust, and adding debit processing for Robinhood.
- •The new leadership team is largely in place with added senior leaders in technology, Clover, and merchant product/sales, and overall employee retention rose with top-talent retention reaching a multi-year high in 2025.
- •Clover volume reaccelerated to roughly 11% on a combined basis in December and January (ex the gateway conversion) after a soft November, and international momentum was strong with Brazil tracking ahead of plan, Canada growing on the new TD relationship, and a new SMCC partnership launching in Japan later this year.
What went wrong
- •Q4 total adjusted revenue was flat at $4.9 billion and organic revenue was roughly flat (down about 40 basis points), with full-year adjusted operating margin down 200 basis points to 37.4%.
- •Financial Solutions revenue declined 2% on both organic and adjusted bases in Q4, with banking down 4% organically from actions taken over prior years and segment operating margin falling to 42.2% from 51.7% on incremental vendor spend and headcount investment; Merchant adjusted operating income fell 17% in the quarter.
- •Clover volume grew only 6% reported (9% ex gateway conversion), below expectations, driven by U.S. softness in November particularly in restaurant and retail where Fiserv has large exposure, consistent with broader industry trends.
- •Core client attrition in 2025 was above where management wanted, though stable with 2024 and 2023 levels, with share loss especially on the smaller credit-union side tied to the prior core-conversion approach.
- •Management reiterated that headline results are below go-forward expectations and will remain so through the first half of 2026 as the company invests in the franchise and laps a higher mix of non-recurring revenue.
Guidance changes
| Metric | Period | Previous | Current | Change |
|---|---|---|---|---|
| 2026 overall guidance | FY2026 | preliminary view given in October (Q3) | In line with that preliminary view | confirmed |
| Clover GPV growth (ex gateway conversion) | FY2026 | — | 10%-15% (low end = core growth; high end = more non-Clover merchant conversion) | issued |
| Clover revenue growth | FY2026 | — | Low double digits | issued |
| Clover medium-term revenue growth target | medium-term | 15%-20% | 15%-20% | reaffirmed |
| Merchant Solutions organic growth | FY2026 | — | Mid-single digits (consistent with Q3/Q4 adjusted run rate) | issued |
| Financial Solutions growth | FY2026 / go-forward | — | Low single digits go-forward; growth across all three areas expected in back half of 2026 after first-half comparative headwinds | issued |
| Non-Clover SMB growth | FY2026 | — | Flat to slight growth (Argentina no longer a growth factor) | issued |
| Enterprise transaction growth go-forward | FY2026 | — | Mid-single digits once the large PayFac comparison fully laps in Q1 | issued |
Performance breakdown
| Metric | YoY change | Reason |
|---|---|---|
| Q4 total adjusted revenue | flat at $4.9B | Stable, broad-based business activity offset by tough comparisons |
| FY adjusted revenue | +4% to $19.8B | Merchant organic growth of 6% and Financial Solutions growth of 2% |
| FY adjusted EPS | to $8.64 (above guidance) | Operating performance ahead of expectations |
| FY adjusted operating margin | -200 bps to 37.4% | In line with guidance; investment in franchise |
| Clover revenue (Q4) | +12% (FY +23% to $3.3B) | Value-added services, software attach, Clover Capital; six-point Q4 headwind from fee eliminations |
| Clover volume (Q4) | +6% reported / +9% ex gateway | Below plan on November U.S. softness in restaurant and retail |
| Merchant Solutions Q4 operating income | -17% to $816M (margin 32.1%) | PayFac network-fee timing lap and mix |
| Financial Solutions Q4 revenue | -2% organic and adjusted | Banking down 4% on prior actions; digital payments down 1%; issuing down 1% |
| Financial Solutions Q4 operating income | -20% to $997M (margin 42.2% vs 51.7%) | Incremental vendor spend and headcount to improve client experience |
| Free cash flow | $4.44B for the year (~93% conversion) | Ahead of $4.25B guidance |
| Zelle transactions | +15% | Maturing product with a slowing growth curve |
Earnings call themes & trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| One Fiserv transformation plan | Outlined in Q3 with strategy pivot toward recurring revenue | Firmly in execution mode across five pillars; no new negative developments versus Q3 conclusions | on track |
| Clover as small business operating platform | Core focus area | Vertical builds (healthcare Practice Pay, professional services launching this quarter), horizontal partnerships (Homebase, ADP, CashFlow Central), 47 banks added to referral ecosystem | expanding |
| Banking segment turnaround | Disappointing results from prior-year actions | Core modernization continues with no forced conversions; investments in service and people aim to return banking to low-single-digit growth; fixes described as fully in Fiserv control | improving but still pressured |
| Project Elevate / cost transformation | — | $73M of expenses incurred in Q4; one-time costs continue into 2026, shifting from professional-services to technology-related as the project broadens to process efficiencies | ongoing investment |
| First-half 2026 comparative headwinds | Flagged in October | Results remain below go-forward expectations through first half of 2026 as the company laps non-recurring revenue; recovery expected in back half | transitional headwind |
| Capital allocation | — | 3x debt-to-EBITDA (target 2.5x-3x); repurchased 3M shares for ~$200M and paid down over $1B of debt after StoneCastle and TD merchant-contract acquisitions | disciplined |
Q&A summary
Has the review of the business accomplished everything needed, and are the forward numbers still solid?
Yes; nothing new versus the Q3 conclusions, which is reflected in hitting Q4 and introducing 2026 guidance in line with the October preliminary view. It is a multi-quarter path focused on execution, with a difficult first-half compare after the Q3 pivot toward recurring revenue.
Any update on the debit-network (Star/Accel) pricing actions and their market impact?
No new developments in Q4; management was pleased with sequential improvement in digital payments and growth in network volumes and debit processing, with comparative headwinds continuing into the first half of next year.
How much of the One Fiserv expense is structural versus one-time, and how clean is the ~36% exit margin?
No material expense ramp-up is expected; One Fiserv costs are largely baked in and the margin guide is in line. Project Elevate cost cadence will increase somewhat and shift from professional services toward technology-related spend as efficiency work broadens.
What drove the December/January Clover reacceleration and the path to the 2026 guide?
November was a macro anomaly especially in restaurants; volumes reaccelerated to about 11% (ex gateway) where the quarter was expected. Core growth has run high single to low double digits; the gateway conversion is a runoff (not a clean lap) whose ~3-point drag declines in 2026.
What needs to change for Financial Solutions to reaccelerate, and what should investors watch?
Underlying volume growth across most of the business remains in long-standing trend ranges; the issue is non-recurring comparative headwinds. Growth is expected across all three FS areas in the back half of 2026, returning to a low-single-digit growth business thereafter.
What drives the high end of the 10%-15% Clover GPV range, and what are banking clients saying?
Core organic Clover growth forms the ~10% floor; reaching the high end requires significantly more deliberate, value-proposition-led back-book conversion than currently contemplated. Banking clients like the early investments and commitments but want to see them sustained over multiple quarters.