Fiserv's Earnings Analysis: Stagnant Growth and Rising Costs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 19 2026
0mins
Should l Buy FISV?
Source: Fool
- Performance Overview: Fiserv's Q4 revenue grew only 1% year-over-year, with a full-year increase of 4%, indicating stagnant growth; however, at a P/E ratio of 9, it still warrants investor attention.
- Declining Earnings Forecast: The expected earnings per share (EPS) for 2026 is projected to be between $8 and $8.30, down from $8.64 in 2025, reflecting a weakening profitability outlook for the company.
- Stagnant Business Segments: Neither of Fiserv's two business segments showed meaningful growth in Q4, with processing and services revenue remaining flat and product growth plummeting from 13% to 3.6%, suggesting little chance for recovery.
- Rising Cost Pressure: Fiserv's costs increased by 5.4% year-over-year in 2025, with Q4 costs surging by 11.4%, indicating a persistent trend that will likely continue into 2026, exacerbating profitability challenges.
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Analyst Views on FISV
Wall Street analysts forecast FISV stock price to rise
28 Analyst Rating
8 Buy
20 Hold
0 Sell
Moderate Buy
Current: 62.290
Low
62.00
Averages
95.61
High
180.00
Current: 62.290
Low
62.00
Averages
95.61
High
180.00
About FISV
Fiserv, Inc. is a global provider of payments and financial services technology solutions. Its segments include Merchant Solutions (Merchant) and Financial Solutions (Financial). The businesses in its Merchant segment provide commerce-enabling products and services to companies of all sizes around the world. These products and services include merchant acquiring and digital commerce services; mobile payment services; security and fraud protection solutions; stored-value solutions; software-as-a-service; POS devices; and pay-by-bank solutions. The business lines in its Merchant segment consist of small business, enterprise, and processing. The businesses in its Financial segment provide products and services to financial institutions, corporate and public sector clients across the world, enabling the processing of customer loan and deposit accounts, digital payments and card transactions. The business lines in its Financial segment consist of digital payments, issuing, and banking.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Outlook Decline: The analyst predicts that Fiserv will face several quarters of year-over-year declines in earnings per share, and while a recovery is expected next year, short-term profitability remains under pressure, affecting investor confidence.
- Weak Revenue Growth: Fiserv reported only 1% year-over-year revenue growth in Q4 and anticipates a maximum expansion of just 3% for 2026, highlighting limited growth potential in the traditional fintech space, which may impact its long-term investment appeal.
- Activist Investor Involvement: Notable activist investor Jana Partners recently disclosed a stake of under 1% in Fiserv and is reportedly urging management to change its business practices, which could influence the company's strategic direction.
See More
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- Performance Decline: Fiserv's stock has plummeted 73% over the past year, primarily due to missing earnings expectations by $0.61 in its third-quarter report, indicating a loss of market share to more agile competitors and a pressing need for business revitalization.
- New Leadership Strategy: Newly appointed CEO Mike Lyons has launched the 'One Fiserv' plan aimed at leveraging artificial intelligence and new technologies to meet customer needs while resetting company benchmarks for progress, although he cautioned that results will take time to materialize.
- Market Position: Despite challenges, Fiserv remains a dominant player in multiple sectors, particularly with its robust digital platform that powers 70% of financial institutions partnering with Zelle, underscoring its significance and potential in the market.
- Partnerships: The company's collaborations with Microsoft and Mastercard are set to enhance its technological advancements, particularly by integrating Copilot and agentic AI into its development and merchant base, which is expected to boost customer engagement and drive future revenue growth.
See More
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Stock Performance: Trade Desk's stock is experiencing a decline early Thursday, continuing a negative trend.
Revenue Outlook: The drop in stock price is attributed to a disappointing revenue outlook from the company.
See More
Surge in Options Trading Volume for Trade Desk and Fiserv
- Trade Desk Options Volume: Trade Desk Inc saw options trading volume of 73,596 contracts, equating to approximately 7.4 million shares, which represents about 47.4% of its average daily trading volume over the past month, indicating strong market interest in its future performance.
- High Strike Call Options: Notably, the $24 strike call option expiring on February 27, 2026, has seen 5,980 contracts traded today, representing around 598,000 underlying shares of TTD, suggesting bullish sentiment among investors regarding its stock price.
- Fiserv Options Activity: Concurrently, Fiserv Inc's options trading volume reached 46,286 contracts, translating to approximately 4.6 million shares, which is about 46.9% of its average daily trading volume over the past month, reflecting active trading in its stock.
- Bullish Call Options: Particularly, the $59.50 strike call option expiring on February 27, 2026, has recorded 14,526 contracts traded today, representing approximately 1.5 million underlying shares of FISV, indicating investor confidence in its future growth prospects.
See More
Fiserv Partners with Peoples Group to Advance Payments Platform
- Strategic Partnership: Fiserv has formed a significant partnership with Peoples Group to develop Canada's next-generation payments platform, highlighting its commitment to innovation in financial technology and potentially enhancing its competitive position in the Canadian market.
- Stock Performance: Despite the positive partnership news, Fiserv's stock is under technical pressure, currently trading at $61.25, which is 0.8% below the 20-day moving average, indicating a cautious overall market sentiment.
- Analyst Ratings: The stock carries a Hold rating with an average price target of $77.43, with recent downgrades from B. Riley Securities, UBS, and Citigroup, reflecting a cautious outlook on its future performance.
- Market Outlook: Fiserv generates about 10% of its revenue internationally, and while its value rank is moderate, the absence of scores in growth, quality, and momentum suggests potential risks that investors should monitor.
See More
Fiserv Shares Drop Following Analyst's Price Target Cut
- Stock Decline: Fiserv's shares fell nearly 5% after analyst Hal Goetsch cut the price target from $72 to $69, indicating investor concerns about the company's future profitability.
- Earnings Outlook: Goetsch anticipates that Fiserv will face several quarters of year-over-year declines in earnings per share (EPS), although he projects a compound annual growth rate (CAGR) of nearly 5% from 2023 to 2027, providing some relief for patient investors.
- Market Dynamics Shift: Activist investor Jana Partners recently disclosed a small stake (under 1%) in Fiserv and is reportedly urging management to implement changes in its business operations, which could impact the company's strategic direction.
- Weak Revenue Growth: Fiserv reported only 1% revenue growth in Q4 2025 and expects a maximum expansion of 3% for 2026, down from 4% in 2025, highlighting its reliability in the traditional fintech space but lack of innovative potential.
See More
Analyst Cuts Fiserv Price Target to $69
- Price Target Reduction: Analyst Hal Goetsch from B. Riley lowered Fiserv's price target from $72 to $69, resulting in a nearly 5% drop in the stock during the trading session, indicating market concerns about the company's future profitability.
- Earnings Outlook Decline: The analyst predicts that Fiserv will face several quarters of year-over-year declines in earnings per share, and while a recovery is expected next year, short-term profitability remains under pressure, affecting investor confidence.
- Weak Revenue Growth: Fiserv reported only 1% year-over-year revenue growth in Q4 and anticipates a maximum expansion of just 3% for 2026, highlighting limited growth potential in the traditional fintech space, which may impact its long-term investment appeal.
- Activist Investor Involvement: Notable activist investor Jana Partners recently disclosed a stake of under 1% in Fiserv and is reportedly urging management to change its business practices, which could influence the company's strategic direction.
See More
Fiserv Faces Challenges but Poised for Recovery
- Performance Decline: Fiserv's stock has plummeted 73% over the past year, primarily due to missing earnings expectations by $0.61 in its third-quarter report, indicating a loss of market share to more agile competitors and a pressing need for business revitalization.
- New Leadership Strategy: Newly appointed CEO Mike Lyons has launched the 'One Fiserv' plan aimed at leveraging artificial intelligence and new technologies to meet customer needs while resetting company benchmarks for progress, although he cautioned that results will take time to materialize.
- Market Position: Despite challenges, Fiserv remains a dominant player in multiple sectors, particularly with its robust digital platform that powers 70% of financial institutions partnering with Zelle, underscoring its significance and potential in the market.
- Partnerships: The company's collaborations with Microsoft and Mastercard are set to enhance its technological advancements, particularly by integrating Copilot and agentic AI into its development and merchant base, which is expected to boost customer engagement and drive future revenue growth.
See More
