Company Reports

Reuters reports that activist investor Jana Partners has sent another letter to Fiserv, pushing for more cost cuts.

Fiserv’s merger with First Data in 2019 kicked off a string of three similar deals that took place in short order. While this deal clearly looked like a winner initially, the picture is now more cloudy.

Fiserv’s merger with First Data in 2019 kicked off a string of three similar deals that took place in short order. While this deal clearly looked like a winner initially, the picture is now more cloudy.

This has been a reset year for Fiserv, as new management tries to put the company back on a stable path. Management now expects that reset to be more difficult than expected because of some macro headwinds and additional investments.

Fiserv announced that CEO Mike Lyons has departed to become CEO of Truist. He has been replaced as CEO by Takis Georgakopoulos, who previously served as co-president leading the merchant segment.

2026 will be a reset year, with the company likely seeing only marginal top-line growth and some margin compression. At its investor day, management laid out expectations for what comes after 2026.

2026 will be a reset year for Fiserv, and management had warned that the first half would be the most difficult. We think the market may have expected better in the first quarter, but the company does appear to be tracking within its guidance.

Fiserv’s merger with First Data in 2019 kicked off a string of three similar deals that took place in short order. While this deal clearly looked like a winner initially, the picture is now more cloudy.

Fiserv’s merger with First Data in 2019 kicked off a string of three similar deals that took place in short order. While this deal clearly looked like a winner in recent years, the picture is now more cloudy.

Fiserv's shares rose at a mid-single-digit level based on a report that activist investor Jana Partners had built a stake in the company.

Fiserv's fourth-quarter results were weak in an absolute sense but came in about as expected. With 2026 poised to be a reset year for the company, management's guidance for the year was roughly in line with our projections.

Fiserv’s merger with First Data in 2019 kicked off a string of three similar deals that took place in short order. While this deal clearly looked like a winner in recent years, the picture is now more cloudy.

Fiserv's third-quarter numbers were weak and management pointed to a much more difficult future, sending the shares into a spiral on Oct. 29.

Fiserv’s merger with First Data in 2019 kicked off a string of three similar deals that took place in short order. Over time, it has proven to be the most successful, with First Data moving form laggard to outperformer under Fiserv's watch.

The market had a strong negative reaction to continued softness in growth at Fiserv, especially with management deciding to pull revenue guidance down to the bottom end of its previous range.

Fiserv's stock dropped significantly on May 15 in reaction to comments that the company's CFO made about near-term volume growth in the Clover business.

While management had previously communicated that Fiserv would see a somewhat slow start to the year, the falloff in growth was a little worse than expected, sparking a strong negative reaction from the market.

Fiserv’s merger with First Data in 2019 kicked off a string of three similar deals that took place in short order. Over time, it has proven to be the most successful, with First Data moving form laggard to outperformer under Fiserv's watch.

We are increasing our fair value estimate for narrow-moat Fiserv to $198 from $168 per share after reassessing and raising our long-term growth and margin assumptions in light of the recent performance of the company. Our fair value estimate equates to 19.1 times our 2025 adjusted earnings estimate. We still see shares as a bit overvalued at the moment.

2024 was a good year for narrow-moat Fiserv, and the company finished it on a strong note. We think Fiserv has the wind at its back at the moment and that could continue into 2025. In the quarter, overall revenue grew 7% on a reported basis, or 13% on an organic basis, and the company continued to achieve strong margin improvement. We will maintain our $168 fair value estimate and see shares as overvalued. We think that Fiserv is an attractive company but that the market is overly focused on its recent strength.