Fiserv Q4 Earnings Beat Estimates, Revenues Decline 7% Y/Y

Core Insights - Fiserv, Inc. (FISV) reported mixed fourth-quarter 2025 results, with earnings exceeding expectations while revenues fell short [1] Financial Performance - Adjusted earnings per share were $1.99, surpassing the Zacks Consensus Estimate by 4.7%, but down 20.7% year over year [1] - Adjusted revenues totaled $4.9 billion, missing the consensus estimate by 1% and declining 6.7% year over year [1] - Processing and services revenues were $4.3 billion, slightly down year over year but meeting the consensus estimate [3] - Product segment revenues reached $1 billion, up 3.6% from the previous year and beating the consensus estimate of $999.6 million [3] - Merchant solutions generated $2.5 billion in adjusted revenues, a 1.5% year-over-year increase, but missed the consensus mark of $2.6 billion [4] - Financial solutions segment reported adjusted revenues of $2.4 billion, a 1.6% decrease year over year, but met the Zacks Consensus Estimate [5] - Operating income was $816 million, down 1.6% year over year, missing the consensus estimate of $833.9 million [4] Balance Sheet & Cash Flow - Fiserv ended the fourth quarter with cash and cash equivalents of $798 million, down from $1.1 billion in the third quarter [6] - Long-term debt decreased to $27.8 billion from $28.9 billion in the previous quarter [6] - The company generated $1.9 billion in net cash from operating activities and reported free cash flow of $1.6 billion, with capital expenditure at $442 million [6] 2026 Guidance - For 2026, management anticipates organic revenue growth of 1-3% and expects EPS in the range of $8-$8.3, with the midpoint of $8.15 exceeding the consensus mark of $8.12 [7]