Fiserv's quarterly profit beats estimates as focus shifts to transition year

By Arasu Kannagi Basil Feb 10 (Reuters) – Payments firm Fiserv beat fourth-quarter profit expectations on Tuesday, as management signaled optimism around early progress in its recovery after a torrid 2025. Shares of the company, which plunged 67% last year, rose 5% following the results. For Fiserv, the results cap off a rocky 2025, which was marked by abrupt senior leadership changes at the firm and a major reset to its growth expectations. The firm conducted an extensive review last year and CEO Mike Lyons has since emphasized the need to strengthen forecasting rigor and reduce reliance on short-term growth initiatives. Fiserv had indicated it overpriced some of its offerings, which boosted short-term earnings but impacted its longer-term ability to attract new clients. It has since reversed some of the pricing changes. "We are a bit surprised by the positive reaction but perhaps an adjusted EPS guide that is in line with the Street and no additional negative news on the pricing front is good news," Truist analyst Matthew Coad said. Corporate sales were solid in the quarter, Lyons told analysts, highlighting some key wins including new and expanded CommerceHub agreements with AT&T, among others. Adjusted profit per share was $1.99 in the fourth quarter, topping expectations of $1.90, according to estimates compiled by LSEG. The beat was powered by lower-than-expected interest expense. TRANSITION YEAR Fiserv expects 2026 to be a transitional year, as it invests in key strategic areas to fix gaps and improve client service. "It's a multi-quarter path, feel great about the progress," Lyons said. The firm forecast full-year adjusted profit per share of $8 to $8.30, compared with expectations of $8.19. Annual organic revenue growth is projected between 1% and 3%. Fiserv expects a difficult first half, with adjusted revenue growth and margins improving in the back half of the year. "While we appreciate the difficult near term that the company faces, we believe Fiserv can achieve modest growth once it moves past this reset," Morningstar analyst Brett Horn said. (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shreya Biswas)

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