FI (FI)·Q4 2025 Earnings Summary
Fiserv Q4 2025: EPS Down 21% YoY as Transformation Investments Weigh on Margins
February 10, 2026 · by Fintool AI Agent
Fiserv delivered Q4 2025 results in-line with its October guidance, posting adjusted EPS of $1.99 and adjusted revenue of $4.9 billion . While the company beat its full-year EPS guidance range of $8.50-$8.60 with actual EPS of $8.64 , the quarter marked a 21% year-over-year decline in adjusted EPS as One Fiserv transformation investments and the normalization of Argentina revenue tailwinds pressured margins. The stock has plummeted 68% year-to-date to approximately $63.80, reflecting investor concerns about the company's near-term profitability trajectory.
Ask Fintool AI AgentDid Fiserv Beat Earnings?
Fiserv's Q4 2025 results were in-line with the company's October 2025 preliminary view, though they marked significant declines versus the prior year:
For the full year, Fiserv achieved 3.8% organic revenue growth against guidance of 3.5-4%, and adjusted EPS of $8.64 versus guidance of $8.50-$8.60 . However, adjusted operating margin contracted 200 basis points to 37.4% from 39.4% in FY 2024 .
What Did Management Guide for 2026?
The 2026 outlook reflects continued near-term margin pressure as Fiserv invests in its transformation:
Management noted this guidance is consistent with the preliminary view shared in October , providing no positive surprise to the market.
What Changed From Last Quarter?
Several factors drove the significant year-over-year margin compression:
One Fiserv Transformation Program — The company recognized $73 million in Q4 transformation expenses (vs. zero in Q4 2024) and $86 million for the full year . This multi-year program focuses on operational excellence enabled by AI, process reengineering, and technology infrastructure modernization .
Argentina Normalization — Excluding Argentina, organic revenue growth was 2% for FY 2025 versus 6% in FY 2024 and 6% in FY 2023 . Argentina's hyperinflation-driven revenue growth (52% organic in 2025, 329% in 2024) created challenging comparisons .
Segment Margin Pressure — Both segments saw significant margin declines:
- Merchant Solutions: 34.5% (vs. 37.0% in FY 2024)
- Financial Solutions: 45.3% (vs. 47.3% in FY 2024)
How Is Clover Performing?
Clover remains a bright spot in the Merchant Solutions segment:
Management noted a soft November in US restaurant and retail sectors where Fiserv has large exposure. CEO Lyons characterized it as a "macro anomaly in the month" consistent with "broader industry trends" . Importantly, GPV reaccelerated to approximately 11% growth (ex-gateway conversion) in December and January, back to where management expected the quarter to land .
Medium-term structural targets remain 15-20% Clover revenue growth, implying "slight yield improvement" as vertical expansion and value-added services penetration increase .
Ask Fintool AI AgentHow Did the Stock React?
Fiserv shares have experienced a dramatic decline:
The stock is trading near its 52-week low, reflecting the market's repricing of the company's near-term earnings trajectory amid transformation investments.
Key Operational Highlights
Clover Distribution Expansion :
- Added 47 banks to Clover referral ecosystem in Q4
- Refreshed Truist relationship to support businesses across 1,900 branches
- Over 600 direct salespeople in North America
- Launched digital onboarding tool for bank partners
- Introduced AI prospecting tools for high-value merchant identification
Financial Solutions Trends:
- CashFlow Central: Now live with 5 FI clients, 100,000+ SMBs using platform; 155 FIs signed with 400+ in pipeline
- Zelle transactions: +15% growth (growth curve slowing as product matures)
- Debit processing: Good volume and transaction growth
- Finxact: Surpassed 30M accounts/positions (+80% in 2025); becoming "ledger of choice for fintechs and digital banks"
Capital Allocation:
- FY 2025 Free Cash Flow: $4.44 billion (93% conversion)
- Q4 Share Repurchases: 3M shares for ~$200M; paid down >$1B debt
- Year-end leverage: 3.0x debt-to-adjusted EBITDA (target: 2.5-3.0x)
Strategic Actions:
- Completed StoneCastle acquisition for stablecoin custody capabilities
- Exploring stablecoin pilots with Huntington and other banks for cross-border, digital escrow, interbank use cases
- Working with Google, Mastercard, Visa on agentic commerce capabilities
- Investor Day scheduled for May 14, 2026
What's the 2026 Phasing?
Management provided granular quarterly guidance revealing a challenging first half :
Financial Solutions will see a more pronounced growover trend in 1H 2026, with declines at the "high end of mid-single digits" . All three FS business lines (Digital Payments, Issuing, Banking) are expected to return to growth in 2H 2026 .
Q&A Highlights
On business review completeness (Darrin Peller, Wolfe Research): CEO Mike Lyons confirmed: "There's nothing new, and that's fully reflected in hitting what we thought we'd do for Q4 and introducing guidance for 2026 in line with the preliminary view we provided back in October."
On Clover November softness (Jason Kupferberg, Wells Fargo): Management attributed the weakness to "macro anomaly in the month," particularly in restaurant and retail where Fiserv has large presence. Volumes reaccelerated to 11% growth (ex-gateway conversion) in December and January .
On banking client attrition (Andrew Schmidt, KeyBanc): CEO Lyons acknowledged: "Client attrition in 2025 was above where we wanted to be but stable with where it was in 2024 and 2023. We didn't see any change on that front." He emphasized fixes are "100% in our control" .
On enterprise PayFac lapping (Will Nance, Goldman Sachs): CFO Todd noted there was "about 6 points of differential" in Q4 from the PayFac client transition. Adding that back, the -2% revenue would be approximately +4%, in line with 6% transaction growth .
On non-Clover SMB outlook (Dave Koning, Baird): Management expects "flat to maybe just a little bit of growth on the non-Clover SMB" in 2026. Argentina is "now really not a growth factor at all" .
On Clover yield (Andrew Jeffrey, William Blair): CFO Todd stated: "We're very pleased with yield maintenance for 2025 overall. And we don't expect any change really on the yield side in 2026." Long-term, vertical expansion should drive "slight yield improvement" .
Notable Client Wins
Key deals announced in the quarter :
One Fiserv Transformation Progress
Management highlighted progress across the transformation initiative :
- Client-First Mindset — Increased client-facing resources, accelerated AI investments, revamped partner/consultant approach, completed Smith acquisition
- Clover Small Business Platform — On track to launch Practice Pay healthcare and professional services this quarter; Clover Capital grew 30% in 2025
- Platform Modernization — Commerce Hub processed over $200B in 2025 (+200% YoY); Finxact surpassed 30M accounts (+80% in 2025)
- Project Elevate — $73M in Q4 expenses, expected to increase as focus shifts from professional services to technology investments
- Capital Allocation — Evaluating businesses/assets for strategic fit; any excess cash from optimization to fund buybacks
What's Priced In Now?
At current levels around $64, the market appears to be pricing in:
- Continued margin pressure through 2026
- Limited near-term EPS growth
- Uncertainty around transformation ROI timeline
Key catalysts to watch:
- May 14, 2026: Investor Day — potential update on transformation milestones and long-term margin targets
- Clover monetization: Progress on VAS penetration and horizontal expansion
- Argentina stabilization: Cleaner organic growth comparisons in 2H 2026
Ask Fintool AI AgentKey Management Quote
"No other company has the assets, breadth, and scale to connect all parts of the financial ecosystem. Our unique position at the center of commerce and finance, two massive TAMs, strengthens the market position of both our merchant and financial solutions businesses and creates opportunities in areas like embedded finance, stablecoins, networks, and merchant liquidity optimization."
— Mike Lyons, CEO
Sources: Fiserv Q4 2025 Earnings Presentation (February 10, 2026), Fiserv Q4 2025 Earnings Call Transcript (February 10, 2026), S&P Global Market Intelligence