Fiserv's quarterly profit beats estimates to close out turbulent 2025

Feb 10 (Reuters) - Payments firm Fiserv reported fourth-quarter profit above Wall Street expectations on Tuesday, as expense discipline offset muted revenue ​growth.

For Fiserv, the results cap off a rocky 2025, which ‌was marked by abrupt senior leadership changes at the firm and a major reset to ‌its growth expectations. Its stock has plunged 74% in the past 12 months.

The firm conducted an extensive review of the business last year and CEO Mike Lyons has since emphasized the need to strengthen forecasting rigor and reduce ⁠the prior leadership's reliance ‌on short-term growth initiatives.

Fiserv had indicated it went above the market in pricing its debit transactions, which boosted short-term ‍earnings but impacted its longer-term ability to attract new clients. It has since reversed some of the pricing changes.

Adjusted profit per share was $1.99 in the fourth quarter, ​topping expectations of $1.90, according to estimates compiled by LSEG. Adjusted quarterly ‌revenue was flat at $4.90 billion.

Interest expense was $375 million during the quarter, below expectations of $419.8 million. Adjusted operating income of $1.71 billion beat estimates of $1.67 billion.

Analysts had expected the fourth quarter to mark the beginning of Fiserv's recovery, with the next several quarters serving as a transition period with muted near-term ⁠growth.

TRANSITION YEAR

Fiserv expects 2026 to be a ​transitional year, as it invests in key ​strategic areas to fix gaps and improve client service.

The firm forecast full-year adjusted profit per share of $8 to $8.30, compared with ‍expectations of $8.19. Annual ⁠organic revenue growth is projected between 1% and 3%.

"Our focus on disciplined investment and efficiency supports our outlook for improving financial performance ⁠as we progress through 2026," CFO Paul Todd said in a statement.

Fiserv repurchased $200 million worth ‌of shares in the fourth quarter.

(Reporting by Arasu Kannagi Basil ‌in Bengaluru; Editing by Shreya Biswas)