Fiserv(FI) - 2025 Q4 - Annual Results

Financial Performance - GAAP revenue increased 1% to $5.28 billion in Q4 2025, with full year revenue up 4% to $21.19 billion[2] - GAAP EPS was $1.51 in Q4 2025, a decrease of 8%, while full year EPS increased 18% to $6.34[2] - Organic revenue growth was flat in Q4 2025, with a 4% increase for the full year, driven by 6% growth in the Merchant Solutions segment[6] - Adjusted EPS decreased 21% to $1.99 in Q4 2025, and decreased 2% to $8.64 for the full year[6] - Fiserv's GAAP net income for Q4 2025 was $811 million, a decrease of 13.6% from $938 million in Q4 2024[23] - Adjusted net income for Q4 2025 was $1,066 million, down 25.8% from $1,437 million in Q4 2024[23] - Total revenue for Q4 2025 was $5,284 million, a slight increase of 0.6% compared to $5,251 million in Q4 2024[28] - Adjusted revenue for Q4 2025 was $4,900 million, remaining relatively stable compared to $4,902 million in Q4 2024[28] - Operating income for Q4 2025 was $1,291 million, down 22.5% from $1,668 million in Q4 2024[28] - Adjusted operating income for Q4 2025 was $1,709 million, a decrease of 18.8% from $2,105 million in Q4 2024[28] - Net income for the year ended December 31, 2025, increased to $3,490 million from $3,180 million in 2024, representing a growth of 9.7%[34] - Adjusted revenue for the year ended December 31, 2025, was $19,804 million, up from $19,123 million in 2024, reflecting a growth of 3.5%[38] - Organic revenue growth for the year ended December 31, 2025, was 4% compared to the previous year[38] Margins and Cash Flow - GAAP operating margin was 24.4% in Q4 2025, down from 31.8% in Q4 2024, while full year margin was 27.5% compared to 28.7% in 2024[3] - Free cash flow for the full year 2025 was $4.44 billion, down from $5.23 billion in the prior year[6] - Free cash flow for the year ended December 31, 2025, was $4,435 million, down from $5,233 million in 2024[44] - Cash and cash equivalents at the end of 2025 were $2,802 million, down from $2,993 million at the end of 2024[34] Shareholder Actions - The company repurchased 3.1 million shares for $200 million in Q4 2025 and 32.2 million shares for $5.6 billion for the full year[6] Future Outlook - Fiserv expects organic revenue growth of 1% to 3% and adjusted EPS of $8.00 to $8.30 for 2026[5] - The company projects organic revenue growth for 2026 to be between 1% and 3%[49] - Adjusted earnings per share outlook for 2026 excludes non-cash intangible asset amortization and other specific costs[49] Acquisitions and Events - The acquisition of StoneCastle Cash Management was completed in December 2025, enhancing access to deposit funding[6] - The company will hold its Investor Day on May 14, 2026, in New York City[6] Assets and Liabilities - Total assets as of December 31, 2025, increased to $80,133 million from $77,176 million in 2024[36] - Total liabilities rose to $54,324 million in 2025, compared to $49,490 million in 2024, marking an increase of 9.3%[36] Capital Expenditures - Capital expenditures for the year ended December 31, 2025, were $1,763 million, compared to $1,569 million in 2024[44] Amortization - The company incurred $310 million in amortization of acquisition-related intangible assets in Q4 2025[28]