Since February 2025, Fiserv (FI) has traded at lower highs at every rebound attempt. This is a bearish downtrend that FI stock could not shake off. When Fiserv posted second-quarter results on July 23, investors sold the stock. FI stock traded at around $130 that day.
In Q2, Fiserv posted an 8% Y/Y increase in revenue, to $5.52 billion. For 2025, adjusted EPS is $10.15-$10.30. The firm said it refined its guidance to reflect YTD performance and to reflect current business activity levels.
Fiserv has a strong pipeline, achieved recent client wins, and has strategic initiatives.
Risks
FI stock is cheap on a price-to-earnings multiple basis of below 14 times (forward) for a reason. Its debt-to-adjusted EBITDA ratio is 2.9 times. This is at the high end of its 2.5x to 3.0x target. Instead of paying down debt, Fiserv spent $2.2 billion to buy back 12 million shares. Still, this helps limit the selling pressure.
In the last 12 months, Fiserv spent $6.9 billion in total cash returns to shareholders.
Clover is an opportunity to grow. It is on pace for $3.5 billion in annual revenue. Rectangle expands Fiserv in the healthcare space. More recently, it added a health care vertical through a TD Bank (TD) partnership. On July 24, it announced that TD Merchant Solutions would use Fiserve technology. This included Clover, a point-of-sale.
