Fiserv Earnings Surpass Estimates in Q1, Revenues Increase Y/Y

Fiserv, Inc. FI has reported mixed first-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, while revenues missed the mark.

FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but gained 5.5% on a year-over-year basis.

The FI stock has gained 41.6% in a year, outperforming the 17.5% rally of the industry it belongs to and the 8.5% rise of the Zacks S&P 500 composite.

Fiserv, Inc. Price, Consensus and EPS Surprise

Fiserv's Quarterly Details

Processing and services’ revenues of $4 billion declined marginally on a year-over-year basis and missed our estimate of $4.3 billion. Revenues in the Product segment were $1.1 billion, rising 22.9% from the year-ago quarter’s actual and outpacing our expectation of $988.5 million.

Revenues from Merchant Solutions were $2.4 billion, rising 5.3% year over year and missing our estimate of $2.5 billion. The Financial Solutions segment reported revenues of $2.4 billion, marking a 5.8% increase from the year-ago quarter and meeting our projection.

The operating margin for the Merchant Solutions segment was 34.2%, up 10 basis points (bps) on a year-over-year basis. The operating margin for the Financial Solutions segment was 47.5%, increasing 340 bps from the year-ago quarter.

Balance Sheet & Cash Flow of FI

Fiserv exited the first quarter of 2025 with cash and cash equivalents of $1.2 billion, flat with the fourth quarter of 2024. The long-term debt was $27 billion in the first quarter of 2025 compared with $23.7 billion in the preceding quarter.

FI generated $648 million in net cash from operating activities, whereas its free cash flow was $371 million. Capital expenditure was $335 million. The company repurchased 9.7 million shares for $2.2 billion in the quarter.

Fiserv's 2025 Guidance

The company expects adjusted earnings per share of $10.1-$10.3. The guided range is higher than the Zacks Consensus Estimate for earnings of $2.07. Fiserv anticipates year-over-year earnings growth of 15-17%. FI expects year-over-year organic revenue growth of 10-12%.

Fiserv carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshots

Equifax Inc. EFX reported impressive first-quarter 2025 results.

EFX’s adjusted earnings were $1.53 per share, outpacing the Zacks Consensus Estimate by 9.3% and increasing 2% from the year ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Total revenues of $1.4 billion surpassed the consensus estimate by 1.9% and grew 3.6% on a year-over-year basis.

Accenture plc ACN posted mixed second-quarter fiscal 2025 results.

ACN’s earnings were $2.82 per share, missing the Zacks Consensus Estimate by a slight margin. The metric increased 1.8% from the year-ago quarter. Total revenues of $16.7 billion beat the consensus estimate by a slight margin but gained 5.4% on a year-over-year basis.

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

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