Fiserv looks to AI, BNPL to spur its recovery

Core Insights - Fiserv is focusing on artificial intelligence to enhance its relevance with banks and merchants while managing costs [1][2] - The company is undergoing a strategic review to address an earnings slump, which includes simplifying its business operations [1] Earnings Performance - For Q4, Fiserv reported adjusted earnings per share (EPS) of $1.99, a decrease of 21% from Q4 2024, while full-year EPS for 2025 was $8.64, down 2% from 2024 [3] - Adjusted revenue for Q4 was $4.90 billion, unchanged from the previous year, and full-year adjusted revenue was $19.80 billion, reflecting a 4% increase from 2024 [3] Future Projections - Fiserv anticipates organic revenue growth of 1% to 3% for 2026, with projected EPS ranging from $8.00 to $8.30 [4] - The company's performance is expected to be below expectations in the first half of 2026, with improvements anticipated later in the year [6] Strategic Changes - Following a significant earnings miss in Q3, Fiserv initiated a restructuring plan called One Fiserv, which included leadership changes [5] - The company is particularly focused on developing agentic AI tools for small to mid-sized businesses, addressing the challenges these organizations face in adopting new technologies [2][7]