Fiserv (FI) Q4 2025 earnings summary

Executive summary

• Q4 2025 results were stable, with business activity in Merchant and Financial Solutions segments aligning with prior outlook and 2026 guidance.

• Strategic focus on the One Fiserv plan, emphasizing client-first service, Clover platform expansion, innovation, operational efficiency via AI, and disciplined capital allocation.

• Completed acquisitions of StoneCastle, Smith, and TD Merchant portfolio, enhancing stablecoin custody and cash management capabilities.

• Significant investments in talent, technology modernization, and client-facing resources, with early positive client feedback and improved employee retention.

• Maintained a strong balance sheet and disciplined capital allocation.

Financial highlights

• Q4 adjusted revenue was $4.9B (flat YoY); full-year adjusted revenue reached $19.8B, up 4%; Q4 GAAP revenue was $5.28B (+1% YoY), full year $21.19B (+4% YoY).

• Q4 adjusted EPS was $1.99 (-21% YoY); full-year adjusted EPS was $8.64 (-2% YoY), above guidance.

• Adjusted operating margin was 34.9% in Q4 and 37.4% for the year (down 200 bps YoY).

• Free cash flow for 2025 was $4.44B, with a 93% conversion rate.

• Capital expenditures for 2025 totaled $1.76B.

Outlook and guidance

• 2026 organic revenue growth expected at 1%–3%; adjusted EPS guidance is $8.00–$8.30; adjusted operating margin projected at ~34%.

• Merchant Solutions to grow mid-single digits; Financial Solutions flat to slightly down.

• Free cash flow conversion expected near 90% for 2026; capital expenditures to remain flat or in high single digits as a percentage of revenue.

• Leverage ratio to end 2026 at ~3x.

• First half of 2026 will see lower growth due to tough comps and investments; improvement expected in the second half.