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With a market cap of $110.9 billion, Fiserv, Inc. (FI) provides payments and fintech solutions in the United States and globally. Based in Milwaukee, Wisconsin, the company operates through the Merchant Solutions and Financial Solutions segments and serves banks, credit unions, leasing and finance companies, retailers, and more.
The fintech giant is expected to announce its Q1 earnings on Tuesday, Apr. 22. Ahead of the event, analysts expect FI to report a profit of $2.07 per share, up 10.1% from the year-ago quarter's earnings of $1.88 per share. Furthermore, the company has surpassed analysts' consensus estimates in each of the last four quarters. In the previous quarter, it reported an EPS of $2.51, which surpassed the consensus estimate by 1.2%.
For the current year, analysts expect FI to report an EPS of $10.24, up a staggering 16.4% from $8.80 in fiscal 2024. Looking ahead, analysts expect its EPS to surge 17.2% year-over-year to $12 in fiscal 2026.
Over the past year, FI shares have surged 26.1%, significantly outperforming the S&P 500 Index’s ($SPX) 2.7% fall and the Technology Select Sector SPDR Fund’s (XLK) 11.1% decline over the same time frame.
FI stock soared nearly 7.2% following its mixed Q4 earnings release on Feb. 5. The company reported a 6.8% year-over-year growth in its total revenue, which amounted to $5.3 billion but failed to meet Street's expectations. However, its adjusted operating margin expanded 180 basis points to 42.9% in the quarter, driving its EPS to surpass the consensus estimates. Additionally, FI stock closed up more than 2% on Mar. 31 after The Goldman Sachs Group, Inc. (GS) upgraded the stock to buy from neutral with a price target of $260.
Moreover, analysts' consensus opinion on FI stock is strongly optimistic, with a "Strong Buy" rating overall. Among 35 analysts covering the stock, opinions include 28 "Strong Buys," four "Moderate Buys,” and three "Holds." FI's mean price of $258.45 implies a premium of 30.2% from its prevailing price level.
