Feb 10 (Reuters) – Payments firm Fiserv reported fourth-quarter profit above Wall Street expectations on Tuesday, as expense discipline offset muted revenue growth.
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. Its stock has plunged 74% in the past 12 months.
The firm conducted an extensive review of the business last year and CEO Mike Lyons has since emphasized the need to strengthen forecasting rigor and reduce the prior leadership’s reliance on short-term growth initiatives.
Fiserv had indicated it went above the market in pricing its debit transactions, which boosted short-term earnings but impacted its longer-term ability to attract new clients. It has since reversed some of the pricing changes.
Adjusted profit per share was $1.99 in the fourth quarter, topping expectations of $1.90, according to estimates compiled by LSEG. Adjusted quarterly revenue was flat at $4.90 billion.
Interest expense was $375 million during the quarter, below expectations of $419.8 million. Adjusted operating income of $1.71 billion beat estimates of $1.67 billion.
Analysts had expected the fourth quarter to mark the beginning of Fiserv’s recovery, with the next several quarters serving as a transition period with muted near-term growth.
TRANSITION YEAR
Fiserv expects 2026 to be a transitional year, as it invests in key strategic areas to fix gaps and improve client service.
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%.
“Our focus on disciplined investment and efficiency supports our outlook for improving financial performance as we progress through 2026,” CFO Paul Todd said in a statement.
Fiserv repurchased $200 million worth of shares in the fourth quarter.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shreya Biswas)
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