Despite disappointing earnings, Fiserv (FI) is still a leader in the payment processing industry. 

Its systems handle more than $2 trillion in payments volume each quarter, giving it one of the largest market shares in financial technology infrastructure worldwide.

Despite generating returns comfortably in excess of corporate averages, the market is pricing this business at a deep discount compared to industry peers, suggesting there is an opportunity for investors able to overlook recent performance and understand this company’s long-term outlook.

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Markets can be impatient—especially with great companies that hit a temporary slowdown.

That happened to Fiserv (FI) this quarter. The company posted admittedly bad guidance, cutting its full-year 2025 growth targets to 8% to 9% revenue growth from its prior 12% range.

At the same time, the company announced a leadership transition that will see longtime CEO Frank Bisignano stepping back from day-to-day operations, to which shares plunged nearly 30%.

The sell-off followed news that Fiserv will focus on integrating its merchant and banking technology divisions under new President and COO Guy Chiarello, a veteran executive who previously led technology at JPMorgan Chase.

The reaction was severe considering how dominant this business remains, Fiserv processes more than one in every five U.S. debit and credit card transactions and serves over 10,000 financial institutions globally.

Its systems handle more than $2 trillion in payments volume each quarter, giving it one of the largest market shares in financial technology infrastructure worldwide.

Through its Clover platform, Fiserv provides point-of-sale and payment solutions to roughly 1.5 million small and mid-sized merchants.

The unit’s payment volume surpassed $330 billion in 2024. In short, Fiserv remains one of the cornerstones of the “piping” that makes financial transactions work. 

Digital payments continue to surge globally, with total transaction value projected to grow 11% annually through 2028.

Fiserv sits at the center of this shift. Its business provides the infrastructure that enables real-time transfers and card payments.

The recent sell-off came after Fiserv trimmed near-term guidance to focus on integration of its merchant services with its banking technology platforms.

The company made a number of acquisitions in the past several years, so this reorganization should help all of those businesses work better together.

And in the meantime, Fiserv is hardly a struggling business.

The company generated a 57% Uniform return on assets (“ROA”) last year, far above the 12% corporate average. At the same time, asset growth remains strong at 13%, led by merchant acceptance and real-time payments solutions.

Yet the stock trades at only 8 times Uniform price-to-earnings (P/E), a deep discount to fintech peers like Adyen at nearly 50 times or Fidelity National Information Systems at 19 times.

That combination of high profitability, solid growth, and discounted valuation rarely lasts long.

While markets focus on a quarter’s guidance revision, Fiserv continues to operate the backbone of modern finance. Its unmatched scale in payments processing and deep client integration make it one of the most indispensable players in the digital economy.

Fiserv’s fundamentals remain among the best in fintech. The company’s temporary stumble has created an opportunity for investors willing to look past short-term volatility.

Best regards,

Joel Litman & Rob Spivey
Chief Investment Officer &
Director of Research
at Valens Research