Fiserv Inc (FI) Stock Forecast & Price Target

Fiserv has demonstrated a solid performance with a 9% year-over-year increase in small business volume, largely propelled by its Clover platform, indicating strong demand in the small and midsize banking sector. The company's organic revenue growth stood at 7%, supported by a significant EBIT margin expansion of 280 basis points, highlighting improved operational efficiency. Additionally, the Merchant Solutions segment exhibited a robust 9% year-over-year organic revenue growth, driven by increases in both enterprise and small business transactions, underscoring Fiserv's competitive position in the payment processing market.

Fiserv's outlook has been negatively impacted by a reduction in its FY25 adjusted operating margin expansion guidance, which has been lowered to 100 basis points from greater than 125 basis points due to slower organic revenue growth and recent acquisitions. The company's FY25 organic revenue growth forecast has also been decreased from a range of 10-12% to a flat 10%, driven by stagnant banking revenue attributable to pricing pressure and delayed implementations. These factors, combined with a challenging macroeconomic environment and increased investment in product development, suggest continued operational and financial headwinds for the company.