Fiserv (FI) Margins Rise to 17%, Reinforcing Value Narrative Despite Slower Profit Growth

Fiserv (FI) delivered continued margin progress, reporting a net profit margin of 17%, up from last year’s 15.2%, and EPS growth of 17.8%. This is a step down from its impressive 25.4% annual rate over the past five years. Shares currently trade at $65.19, reflecting a valuation well below the estimated fair value of $147.95 and industry peers. With forecasted earnings and revenue growth moderating to 7.2% and 3% per year respectively, the numbers highlight a shift from rapid expansion toward steady, resilient profitability.

See our full analysis for Fiserv.

Next up, we’ll weigh these latest earnings figures against the market’s key narratives to see what’s holding up and where expectations might need a rethink.

See what the community is saying about FiservNYSE:FI Earnings & Revenue History as at Oct 2025

Analysts Predict Margins Climbing Toward 24%

Forecasts call for profit margins to rise from 16.0% today to an ambitious 24.0% within three years, moving Fiserv well above the sector’s average. According to the analysts' consensus view, this margin expansion hinges on strong growth from global digital platforms and underpenetrated value-added services,

With the Clover platform rolling out in more international markets and increased adoption of next-generation offerings like Commerce Hub and Finxact, bulls see recurring software revenue as the catalyst for expanding recurring margins beyond most peers. Unexpectedly, despite this optimism, management now cites execution delays and higher spending on new initiatives. As a result, Fiserv lowered its full-year margin guidance, which could make reaching future 24% margins more challenging. Curious how analysts set ambitious targets, yet the path to higher margins has new hurdles? See how the narratives stack up: 📊 Read the full Fiserv Consensus Narrative.

Share Count Set to Shrink by Over 4%

Fiserv is projected to reduce its shares outstanding by around 4.45% per year over the next three years, a pace that can enhance EPS even if top-line growth slows. Analysts' consensus narrative points out this capital return move should accelerate per-share earnings growth,

Buybacks at current valuations may be especially accretive, since Fiserv trades at a 9.8x P/E, well below its peers at 14.6x, giving upside if investor demand rebounds. However, while the strategy adds EPS tailwinds, bears argue execution around buybacks is no substitute for sustained organic revenue and margin expansion, especially if integration costs from acquisitions linger.

Trading at a 9.8x P/E, Steep Discount to Fair Value

The current share price of $65.19 means Fiserv is valued at just 9.8x trailing earnings, a discount not only to industry peers (14.6x to 14.8x) but also to the DCF fair value of $147.95. Per the analysts' consensus view, this steep discount heavily supports the idea that Fiserv provides strong value for investors who are focused on resilient, high-quality earnings,

The market appears to be pricing in execution and competitive risks more than the company's solid profitability track record, despite ongoing analyst price targets giving meaningful upside from current levels. The narrative presents a tension: the valuation gap offers upside for patient investors, but also signals a market wariness until more tangible progress on growth initiatives shines through.

Story Continues

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Fiserv on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your Fiserv research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

See What Else Is Out There

While Fiserv’s profit margins and valuation are appealing, uncertainty around execution delays and slowing revenue growth signal challenges ahead for sustained expansion.

If you’d prefer to focus on businesses consistently growing without these setbacks, check out stable growth stocks screener (2108 results) for companies delivering reliable results year after year.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include FI.

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