Fiserv’s Remarkable Financial Performance Shines in Q3 Earnings Report

Milwaukee, Wisconsin-based Fiserv, Inc. (FI), a leader in payments and financial technology, operates in sectors such as Merchant Acceptance, Financial Technology, and Payments and Network. With a market capitalization close to $120 billion, Fiserv’s reach extends across the Americas, Europe, Africa, the Middle East, and the Indo-Pacific.

Stock Performance Outshines Broader Market Trends

The fintech powerhouse has notably outperformed the broader market in the last year. Fiserv’s stock has jumped 58.7% year-to-date and 72.6% over the last year, significantly exceeding the gains of the S&P 500 Index ($SPX), which rose 24.7% in 2024 and 32.3% over the previous 52 weeks.

Furthermore, Fiserv surpassed the performance of the Global X FinTech ETF (FINX), which climbed 25.6% this year and 54.5% in the past year.

Impressive Q3 Earnings Boost Investor Confidence

Following the release of its strong Q3 earnings on October 22, shares of Fiserv climbed 1.3%. The company reported a robust 15% year-over-year increase in organic revenues, largely due to the solid performance in its merchant solutions segment. Overall, Fiserv’s revenues rose 7% from the previous year, reaching $5.2 billion, while product revenues surged by an exceptional 13.1% to $978 million.

Profitability also saw substantial growth, with adjusted earnings per share (EPS) increasing 17.3% year-over-year to $2.30, which exceeded analysts’ expectations by 2.2%. Such results have strengthened investor sentiment.

Positive Forecast for Future Earnings

Looking ahead to the current fiscal year ending in December, analysts anticipate a 16.6% increase in adjusted EPS to $8.77. Fiserv has a commendable track record, having beaten analysts’ expectations in each of the past four quarters.

The consensus rating on FI stock is “Strong Buy.” Of the 36 analysts following the stock, 26 recommend a “Strong Buy,” four advise a “Moderate Buy,” and six opt for a “Hold” rating.

Analysts Remain Optimistic

This outlook is more favorable than three months prior when 25 analysts were recommending “Strong Buy” ratings. On October 29, Tigress Financial analyst Ivan Feinseth reaffirmed a “Buy” rating on FI, raising the price target to $244, which is the highest target on the Street and suggests a potential upside of 15.7%.

Additionally, the mean price target for Fiserv stands at $216.18, indicating a modest premium of just 2.5% from current price levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.