Here's Why You Should Retain Fiserv Stock in Your Portfolio Now

Fiserv, Inc. FI has gained 3.2% in the past 30 days compared with the industry’s 2.1% growth and the Zacks S&P 500 composite’s 2.5% rise.

FI’s revenues are anticipated to increase 9.1% and 8.3% year over year in 2025 and 2026, respectively. Earnings are estimated to rise 16% in 2025 and 15.9% in 2026.

Factors That Augur Well for Fiserv’s Success

Fiserv's acquisition of the remaining 49.9% stake in AIB Merchant Services marks a significant step in strengthening its European presence. With full ownership, Fiserv gains greater flexibility to scale its Clover POS system and expand merchant services across the region. The exclusive referral partnership with AIB Group further ensures a strong flow of new business opportunities, supporting both growth and customer acquisition. This move highlights Fiserv’s commitment to accelerating international expansion while enhancing its competitive edge in the payments and financial technology market.

Fiserv's decision to acquire CardFree significantly enhances the capabilities of its Clover platform (Fiserv’s cloud-based point-of-sale (POS) and business management platform), allowing it to better serve the hospitality, restaurant and lodging industries. By integrating CardFree’s advanced order, payment and loyalty solutions, Clover can now meet the needs of larger, multi-location businesses with complex operations. Features like drive-through software, kiosk enablement and third-party delivery integration expand Clover’s functionality, making it more scalable and attractive to enterprise merchants. This not only strengthens Fiserv’s competitive edge in the hospitality sector but also deepens customer engagement, driving growth opportunities and recurring revenue.

Fiserv’s Small Business Index for July and August 2025 highlights a resilient outlook despite shifting consumer behavior. In July 2025, gains came from higher ticket sizes due to inflation, while in August 2025, improved foot traffic coincided with smaller average tickets as shoppers leaned toward value-driven choices. Growth in quick-service restaurants and essentials reflects continued consumer engagement even as discretionary spending softened. For Fiserv, this resilience in small business activity signals steady transaction flows, reinforcing the relevance of its Clover and payment solutions in supporting merchants through evolving spending trends.

Moreover, Fiserv’s announcement of a strategic relationship with TD Bank Group in July 2025 marks a significant step in strengthening its Canadian footprint and scaling Clover across North America. The deal brings 3,400 merchants and 30,000 locations onto Fiserv’s platform, expanding recurring revenue opportunities and deepening ties with a major Canadian bank. By combining Clover’s capabilities with TD’s business banking solutions, the partnership enhances value for merchants while positioning Fiserv to accelerate platform adoption and capture greater market share in Canada.

Risks Faced by FI

Fiserv's lack of dividend payments, with no plans to introduce them, leaves investors reliant solely on share price appreciation for returns. Given the 36% decline in the past six months, this path carries significant risk, making the stock less attractive to dividend-seeking investors who may prefer more stable, income-generating alternatives.

Moreover, highly competitive market dynamics, intensified by the entry of multiple non-banking companies, pressure Fiserv to continually innovate and differentiate its offerings while keeping costs under control. To stay ahead, the company must actively invest in technology and talent, which could threaten its ability to strike a balance between growth and profitability.

Zacks Rank & Stocks to Consider

Currently, Fiserv carries a Zacks Rank #3 (Hold).

Some better-ranked stocks to consider from the broader Zacks Business Services sector are Maximus MMS and AppLovin APP. 

Maximus sports a Zacks Rank of 1 (Strong Buy) at present. You can see  the complete list of today’s Zacks #1 Rank stocks here.

MMS has an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missing once. The average beat is 29.3%. 

AppLovin also sports a Zacks Rank of 1.

APP has an encouraging earnings surprise history, topping the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 22.36%.

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This article originally published on Zacks Investment Research (zacks.com).

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