Fiserv Q4 Earnings: Merchant and Financial Solutions Drive Growth with Promising Outlook for 2025

Fiserv, Inc. (FI) recently announced its results for the fiscal fourth quarter of 2024, showing a significant increase in revenue. The company reported a revenue up by 7% year-over-year, reaching $5.25 billion, which surpassed the analysts' consensus estimate of $4.96 billion. When adjusted, the revenue also rose by 7% to $4.90 billion.

The adjusted earnings per share (EPS) for Fiserv was $2.51, exceeding the expected $2.48 from analysts. This adjusted EPS reflects a 15% increase compared to the same period last year, contributing to a positive market reaction with a rise in the stock price.

Organic revenue saw robust growth of 13%, which was primarily fueled by a remarkable 23% increase in Merchant Solutions, along with a 4% rise in Financial Solutions. The company's efficiency also improved, with an adjusted operating margin rising by 180 basis points year-over-year, reaching 42.9%. The Merchant Solutions segment saw its operating margin increase by 150 basis points year-over-year to 39.2%, while the Financial Solutions segment’s margin increased by 320 basis points to 51.7%.

Chair and CEO Frank Bisignano emphasized that Fiserv has maintained a strong performance trajectory, marking four consecutive years of double-digit organic revenue growth and the 39th continuous year of double-digit growth in adjusted earnings per share.

Outlook for FY25

Looking ahead to fiscal year 2025, Fiserv is projecting organic revenue growth of 10% to 12%. The company also expects its adjusted EPS to be between $10.10 and $10.30, which would represent a growth of 15% to 17% year-over-year, slightly above the $10.20 consensus estimate from analysts.

In the past year, Fiserv's stock has performed exceptionally well, witnessing an increase of over 57%. As of the latest update, the stock is trading at $228.82, reflecting an increase of 6.8%.

Fiserv, Earnings, Growth