Fiserv (1FISV) AI Stock Analysis

Company Guidance

Fiserv reaffirmed adjusted revenue for 2026 of down 1.5% to down 0.5% and organic revenue of minus 1% to flat; for Q4, Merchant expects adjusted and organic revenue growth in the 6% to 8% range, while Financial Solutions adjusted revenue is expected to decline in the low single digits due to divestitures, with organic revenue growth roughly consistent with the 2% reported in Q3, including an approximate 400 basis point impact to issuing and an approximate 500 basis point impact to digital payments. The company continues to expect adjusted operating margin of approximately 31% to 31.5%, adjusted EPS between $7.20 and $7.40, a 19% adjusted tax rate for the year and an approximate 23% adjusted tax rate for Q4, capital expenditures of high single-digit percent of adjusted revenues, approximately 90% free cash flow conversion, and a year-end gross leverage ratio of approximately 3x; it also expects Clover revenue growth in the mid-single digits for the year and Clover GPV growth of 10% to 15% ex the gateway conversion, with the banking segment expected to return to low single-digit adjusted revenue growth and Financial Solutions’ medium-term growth range of 2% to 4%.