Fiserv's Q4 Earnings Show Strong Growth and Positive 2025 Outlook

Fiserv, Inc. (NYSE: FI) recently announced its fiscal fourth-quarter results for 2024, demonstrating substantial growth in revenue. The company reported a 7% year-over-year increase, reaching $5.25 billion, which surpassed the analyst consensus estimate of $4.96 billion. In addition, adjusted revenue also climbed 7% compared to the previous year, totaling $4.90 billion.

For this quarter, Fiserv's adjusted earnings per share (EPS) came in at $2.51, which was above analysts' expectations of $2.48. This EPS reflects a remarkable 15% growth from the same period last year, leading to a rise in the company's stock price following the announcement.

Growing demand for Fiserv’s services was evident as organic revenue surged by 13%. This growth was primarily fueled by a 23% increase in Merchant Solutions and a modest 4% growth in Financial Solutions.

Moreover, the company saw an improvement in its adjusted operating margins. The overall adjusted operating margin increased by 180 basis points year-over-year to 42.9%. In the Merchant Solutions segment, the margin rose by 150 basis points to reach 39.2%, while in the Financial Solutions segment, the margin expanded by 320 basis points to achieve 51.7%.

Chair and CEO Frank Bisignano emphasized Fiserv’s continued success, highlighting that the company has now completed its fourth consecutive year of double-digit organic revenue growth. Additionally, this marks the 39th consecutive year of double-digit growth in adjusted earnings per share.

Looking ahead to fiscal year 2025, Fiserv anticipates organic revenue growth of 10%-12%. The company also provided an adjusted EPS guidance in the range of $10.10-$10.30, which represents a year-over-year increase of 15%-17%, slightly surpassing the consensus estimate of $10.20.

As a result of these positive earnings and outlook, Fiserv's stock has seen significant appreciation, gaining more than 57% over the past year. On the most recent trading day, Fiserv's stock price increased by 6.8%, reaching $228.82.

Fiserv, Earnings, Growth