Reasons Why You Should Retain Fiserv Stock in Your Portfolio

Fiserv, Inc.’s FISV growth is fueled by the rising adoption of Software-as-a-Service (SaaS) and payment solutions by business houses. Its new acquisitions and AI innovations aid it in gaining access to diverse markets. The company’s revenues are expected to grow 4.3% in 2025 and 3.1% in 2026.

Factors That Bode Well for FISV

FISV’s revenue growth is largely driven by its financial services and technology solutions for more than 12,000 clients worldwide in the banking, insurance, healthcare and investment industries. The increased use of cloud-based solutions offers a strong growth opportunity for the company’s SaaS products. Additionally, new cutting-edge payment systems are driving growth for its payment platforms.

Fiserv, Inc. Revenue (TTM)

Fiserv, Inc. revenue-ttm | Fiserv, Inc. Quote

Recently improved payment platforms such as Clover, Commerce Hub, Finxact, Optis, VisionNext and the Independent Software Vendor program are helping generate higher revenues and gain new clients. FISV recently agreed to partner with a local financial institution in Japan to drive digital payments transformation for the Japanese small and medium-sized business market.

FISV also expands its product portfolio through strategic acquisitions. The recent acquisition of Smith Consulting Group, an operational consulting service utilized by community banks and credit unions across the United States, enhanced Fiserv’s ability to deliver strategic value to customers by embedding deeper expertise directly into its service model.

Additionally, the company acquired CardFree, an all-in-one platform that empowers merchants with customized order, pay and loyalty solutions, enhancing Clover's (Fiserv’s point-of-sale system that serves small businesses) capabilities to support organizations growing into larger, multi-location merchants with complicated technical requirements.

A Risk

FISV has never declared and currently has no plans to pay out cash dividends, leaving shareholders to achieve a return on investment only through its share price appreciation. Since stock appreciation is not guaranteed, cash dividend-seeking investors may avoid investing in its stock.

Zacks Rank & Stocks to Consider

FISV currently carries a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the industry are Global Payments Inc. GPN and Fidelity National Information Services, Inc.  FDS.

Global Payments carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 11.5%.

GPN beat earnings estimates in three of the last four quarters and missed once, with an earnings surprise of 1.9% on average.

Fidelity National Information carries a Zacks Rank of 2 at present. FDS has a long-term earnings growth expectation of 10.7%.

The company beat earnings estimates in three of the last four quarters and matched once, with the earnings surprise being 1.6%, on average.

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

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