Milwaukee, Wisconsin-based Fiserv, Inc. (FI) is a leading provider of payments and fintech services. The company operates through three main segments: Merchant Acceptance, Financial Technology, and Payments and Network. With a market cap of $72.4 billion, Fiserv has a global presence spanning the Americas, Europe, the Middle East, Africa, and the Indo-Pacific.
Despite its strong market presence, Fiserv has underperformed the broader market in the past year. The company’s stock prices have dropped 35.1% on a year-to-date basis and 16.8% over the past year, lagging behind major indices like the S&P 500 Index and the Global X FinTech ETF.
In the second quarter of 2025, Fiserv reported a solid 8% year-over-year increase in total revenue to $5.5 billion, driven by growth in product sales and processing & service revenues. The company also saw a 16% surge in adjusted EPS to $2.47, surpassing analyst estimates. However, Fiserv narrowed its full-year organic revenue growth guidance to 10%, down from the previous range of 10% to 12%, leading to a significant drop in its stock prices.
Analysts expect Fiserv to deliver an adjusted EPS of $10.22 for the full fiscal year 2025, representing a 16.1% year-over-year increase. The company has a history of outperforming earnings estimates and currently holds a consensus “Strong Buy” rating with 27 analysts rating it as a “Strong Buy,” four as a “Moderate Buy,” four as a “Hold,” and one as a “Strong Sell.”
On Jul. 29, Mizuho analyst Dan Dolev maintained an “Outperform” rating on FI but lowered the price target from $194 to $165. Fiserv’s mean price target of $187.18 suggests a 40.5% premium to current price levels, while the street-high target of $250 indicates a potential upside of 87.6%.
In conclusion, while Fiserv has faced some challenges in the market, the company continues to be a strong player in the fintech industry with significant growth potential. Investors and analysts remain optimistic about its future performance, despite recent setbacks.
