Fiserv, Inc. (FI – Free Report) stock has had an impressive run over the past year. Shares of the company have rallied 39.2% compared with the 18% growth of the industry it belongs to and the 10.7% rise of the Zacks S&P 500 Composite.
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The company’s revenues are anticipated to increase 9.3% and 8.8% year over year in 2025 and 2026, respectively. Earnings are estimated to rise 16.3% in 2025 and 17% in 2026. FI has an estimated long-term (three to five years) earnings per share growth rate of 15.1%.
Factors That Auger Well for FI
Fiserv’s acquisition of CCV boosts its growth in Europe, enhancing its ability to deploy the Clover platform across the region. By integrating CCV’s expertise in omnichannel payments, Fiserv can offer more seamless and innovative solutions to businesses in the Netherlands, Belgium and Germany. This acquisition strengthens Fiserv’s presence in Europe and provides clients with secure, reliable and advanced payment technology, ensuring continued success and growth.
Moreover, Fiserv’s acquisition of Payfare enhances its embedded finance solutions by adding Payfare’s expertise in card program management and white-label consumer apps. This integration strengthens Fiserv’s ability to offer comprehensive banking, payments and lending solutions, particularly for the growing gig economy and new workforce models.
Further, the partnership with “Shark Tank” and the Clover x Shark Tank Summit benefits Fiserv, the parent company of Clover, by boosting its visibility and credibility among small businesses. It aligns Fiserv with a trusted brand, providing access to a large pool of potential customers. The initiative reinforces Fiserv’s commitment to empowering small businesses, helping solidify its reputation as a leading provider of payment solutions while expanding its reach in the entrepreneurial market.
FI’s current ratio (a measure of liquidity) at the end of 2024 was pegged at 1.06, higher than 0.87 of its industry. The company has a brief history of stable liquidity. In 2021, 2022 and 2023, Fiserv’s liquidity measure was pegged at 1.03, 1.04 and 1.04, respectively. A current ratio of more than 1 indicates that the company will pay off short-term obligations efficiently.
Fiserv’s recognition as one of Fortune’s “World’s Most Admired Companies” for 2025 highlights its strong reputation in financial services technology. Ranking second in the Financial Data Services category, Fiserv is praised for its innovation, quality and management. This achievement, earned 10 times in the last 11 years, reflects the company’s consistent leadership and commitment to delivering value to clients, employees and communities.
Fiserv has been consistent with share repurchases. In 2023, 2022 and 2021, Fiserv repurchased 40 million, 25.4 million and 23.3 million shares for $4.7 billion, $2.50 billion and $2.57 billion, respectively. In 2024, FI repurchased $5.5 billion shares. Moreover, FI’s board of directors authorized the purchase of up to 60.0 million shares of its common stock on Feb. 19, 2025. As of Dec. 31, 2024, approximately 18.0 million shares remained under the existing repurchase authorization.
FI: Key Risks to Watch
FI faces fierce competition in its core banking products and services. The industry has become increasingly competitive with the entry of numerous non-banking entities, including internal data processing departments, data processing affiliates of large companies, major computer hardware manufacturers, independent computer service firms and processing centers. As a result, maintaining strong, long-term client relationships has become a challenging task amid this stiff competition.
FI’s Zacks Rank
FI currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks from the broader Zacks Business Services sector are Maximus (MMS – Free Report) and AppLovin (APP – Free Report) .
Maximus carries a Zacks Rank of 2 (Buy) at present.
MMS has an encouraging earnings surprise history, having outpaced the Zacks Consensus estimate in three of the trailing four quarters and missed once. The average beat was 13.3%.
AppLovin currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
APP has an encouraging earnings surprise history, having outpaced the Zacks Consensus estimate in each of the trailing four quarters. The average beat was 23.5%.
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