Fiserv (NASDAQ:FISV) executives used the company’s fourth-quarter 2025 earnings call to outline progress on a multi-quarter operational turnaround plan while acknowledging that headline results remain below the company’s “go-forward expectations,” particularly into the first half of 2026. CEO Mike Lyons said the quarter represented “a decisive and positive step” toward rebuilding consistency across client service, execution, technology, and innovation, and he emphasized that the company’s 2026 guidance is in line with the preliminary view shared in October.
Fourth-quarter and full-year results
CFO Paul Todd reported fourth-quarter adjusted revenue of $4.9 billion, which was flat year over year, and adjusted operating income of $1.7 billion, producing an adjusted operating margin of 34.9%. Organic revenue was “roughly flat,” down approximately 40 basis points in the quarter.
Adjusted EPS was $1.99 in the fourth quarter and $8.64 for the year, above the company’s guidance range of $8.50 to $8.60. Free cash flow was $1.6 billion in the quarter and $4.44 billion for the year, ahead of the company’s $4.25 billion target, with approximately 93% conversion.
Segment performance: Merchant Solutions and Clover trends
Merchant Solutions posted 1% organic revenue growth in the fourth quarter and 2% adjusted revenue growth, Todd said. Small business revenue grew 2% organically, with the company noting that the impact of its CCV acquisition was slightly greater than the foreign exchange headwind. Todd also reiterated that Clover fee eliminations discussed on the prior call created a two-point headwind to small business growth in the quarter.
Clover revenue grew 12% in Q4, which Todd said was two percentage points higher than guidance, despite a six-point headwind from the fee eliminations. Clover volume grew 6% on a reported basis and 9% excluding a previously discussed gateway conversion. Todd said Clover volume growth was below expectations due largely to softness in November in the U.S., particularly in restaurant and retail categories. He added that volumes reaccelerated in December and January to approximately 11% excluding the gateway conversion.
Value-added services represented 27% of Clover revenue in Q4, up five points from a year earlier, driven by “anticipation,” software attach, and Clover Capital, according to management. Clover revenue for 2025 finished at $3.3 billion, up 23%.
Looking ahead, Todd said that assuming stable macroeconomic conditions, the company expects Clover GPV growth of 10% to 15% in 2026 excluding the gateway conversion. Clover revenue is expected to grow in the low double digits in 2026, with the company maintaining its medium-term Clover revenue growth target of 15% to 20%.
Financial Solutions: pressure in banking and margin impacts
Financial Solutions declined 2% in both organic and adjusted revenue in the fourth quarter. In digital payments, revenue declined 1%, while the company cited good volume growth in debit processing and network volumes and noted that Zelle transactions grew 15% as growth slows with maturity. Todd said the company began ramping revenue from CashFlow Central during the quarter, and that ATM managed services created an approximate one-point headwind in digital payments revenue growth.
Issuing revenue declined 1% as global active accounts on file grew in the low single digits. Banking revenue decreased 4% organically, which Todd said reflected impacts from certain actions taken over the last several years. While banking improved sequentially, he said comparative headwinds will persist through the first half of 2026, after which the company expects a return to stability.
Fourth-quarter adjusted operating income in Financial Solutions fell 20% to $997 million, with margin dropping to 42.2% from 51.7% a year earlier. Todd attributed the quarter’s margin decline largely to incremental vendor spend and headcount investments aimed at improving client experience.
One Fiserv priorities, client wins, and innovation initiatives
Lyons said the company took “decisive actions” under the “One Fiserv” plan, which he described as the foundation of strategy and integrated into the 2026 plan. He outlined five pillars: client-first operations, building Clover as a small business operating platform, differentiated innovation across finance and commerce, operational excellence and efficiency enabled by AI, and disciplined capital allocation.
On the client-first pillar, management cited investments in client-facing resources and consultant engagement, product development progress tied to commitments made at the Fiserv Forum client event, and accelerated modernization of technology platforms. Lyons said the company is adding multi-site resiliency measures across most consumer-facing payment platforms and remains on track to complete this effort by mid-2026.
Lyons also highlighted several sales wins and expansions in the quarter, including Commerce Hub agreements with a medical device company, a specialty retail company, and AT&T, as well as Financial Solutions wins such as Mechanics Bancorp selecting Fiserv’s core and adding its XD digital platform, a new DNA core deal with Republic Bank & Trust Company, and an expansion with Robinhood to add debit processing.
On innovation, the company said Commerce Hub is progressing toward a cloud-native global omnichannel gateway, with a Q4 launch across the Americas and a ramp with a “leading video streaming service provider” client. Management said the platform processed over $200 billion in 2025, representing more than 200% growth year over year. In core banking modernization, Lyons reiterated there will be “no forced upgrades or conversions” as part of the effort. Management also said Finxact surpassed 30 million total accounts and positions, more than 80% growth in 2025.
Fiserv also discussed stablecoin work, including pilots explored with Huntington and other banks for use cases such as cross-border payments, digital escrow, and interbank money movement. Lyons said that with the closing of the StoneCastle acquisition, the company introduced stablecoin custody capabilities, which he characterized as a way to recycle reserves back to financial institutions. The company also discussed developing “agentic commerce” capabilities and said it is working with Google, Mastercard, and Visa to bring agentic commerce to mainstream use.
2026 guidance and near-term headwinds
For 2026, Todd guided to organic revenue growth of 1% to 3%, with Merchant Solutions growth in the mid-single digits and Financial Solutions flat to slightly down. He said the first half of 2026 will reflect difficult comparisons due to higher non-recurring revenue a year earlier, with adjusted revenue growth in the first half expected to decline to the low single digits and Q2 representing the trough. In Financial Solutions, Todd said the first-half decline could be at the high end of mid-single digits due to the “more pronounced growover trend.”
Fiserv guided to adjusted EPS of $8.00 to $8.30, an effective tax rate of about 19% to 19.5%, and weighted average share count of approximately 530 million. On profitability, Todd guided to full-year adjusted operating margin of about 34%, with 31% to 32% in the first half (Q1 just below 30%) and 35% to 36% in the second half, with Q4 as the high point.
Fiserv expects capital expenditures to remain approximately flat with 2025 and plans to end 2026 with leverage of about 3x. Free cash flow conversion is expected to be approximately 90% of adjusted net income, with Q1 again expected to be the trough.
On capital allocation, Todd said the company repurchased 3 million shares for approximately $200 million in the quarter and paid down more than $1 billion in debt after funding acquisitions including StoneCastle and a portfolio of TD merchant contracts. The company also disclosed $73 million of Project Elevate expenses in Q4 and said it expects additional one-time costs related to the program in 2026.
Lyons said the company has scheduled an investor day for May 14, where it plans to provide additional detail on its strategy, financial outlook, and leadership team.
About Fiserv (NASDAQ:FISV)
Fiserv, Inc, founded in 1984 and headquartered in Brookfield, Wisconsin, is a global provider of financial services technology. The company develops and delivers integrated solutions for payments, processing, risk and compliance, customer and channel management, and business insights and optimization. Serving thousands of clients, Fiserv supports banks, credit unions, securities broker-dealers, leasing and finance companies, and retailers.
Fiserv’s core offerings include account processing systems that automate deposit, lending and transaction processing for financial institutions, as well as digital banking platforms that enable mobile and online banking services.
