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Here's Why You Should Retain Fiserv Stock in Your Portfolio Now

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Fiserv, Inc. (FI - Free Report) has gained 6% in the past year compared with the industry’s 24.2% growth and the Zacks S&P 500 composite’s 10.8% rise.

FI’s revenues are anticipated to increase 10.2% and 8.4% year over year in 2025 and 2026, respectively. Earnings are estimated to rise 16.3% in 2025 and 16.8% in 2026.

Factors That Augur Well for Fiserv’s Success

FI’s merchant solutions segment generates recurring revenues through per-transaction fees. The company reported that peak processing volume exceeds 25,000 financial transactions per second, creating a consistent revenue stream from this transactional volume.

Additionally, subscription fees are required to operate Clover, which contributes to the steady revenue flow. Processing and service revenues account for nearly 81% of the top line, driven by account and transaction-based fees under multi-year contracts with high renewal rates.

Buyouts are the company’s means to expand its product portfolio. In March 2025, Fiserv completed the Payfare acquisition, which complements FI’s embedded financial solutions with card program management and white-label customer application.

In the same month, CCV was acquired by the company to boost the Clover platform and operating system’s deployment across Europe while facilitating improved capabilities and innovation to an expansive, combined merchant and partner base.

In April 2025, Fiserv acquired Pinch Payments, which provides FI with a platform to manage and optimize the entire payment process that supports flexible service options and speed to market for PayFacs, independent software vendors, business payment service providers, and independent sales organizations and enterprises.

FI also entered a definitive agreement to acquire Money Money in the same month. This buyout will expand the company’s services in Brazil, assisting small and medium-sized businesses to access capital to be invested in growth and business maturation.

Fiserv’s current ratio at the end of the first quarter of 2025 was 1.1, slightly below the industry average of 1.15. However, the metric increased 3.8% sequentially, driven by a rise in accounts receivable. Crucially, the metric is above 1, indicating an effective short-term liabilities coverage and reassuring investors regarding the company’s liquidity position.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

Risks Faced by FI

Fiserv operates in a highly competitive market with the industry getting more competitive due to the entry of multiple non-banking companies. This phenomenon puts pressure on FI to innovate and differentiate its offerings continually while maintaining cost efficacy. Therefore, a need to invest in tech and talent to stay ahead in the game is necessary, posing a threat to the company’s ability to balance growth and profitability.

The company has never declared dividends and does not have any plan to pay it. Hence, the only way to achieve a return on investment is share price appreciation, which is not guaranteed, given the 28.4% decline in the past six months. Hence, dividend-seeking investors may turn away from this stock and look for a better investment.

Fiserv’s Zacks Rank & Stocks to Consider

The company has a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks from the broader Zacks Business Services sector are Cintas (CTAS - Free Report) and Duolingo (DUOL - Free Report) ,each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cintas has a long-term earnings growth expectation of 13.2%. CTAS delivered a trailing four-quarter earnings surprise of 7.6%, on average.

Duolingo has a long-term earnings growth expectation of 44.9%. DUOL delivered a trailing four-quarter earnings surprise of 22.8%, on average.


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