Fiserv Reports Strong Q4 and Full Year 2024 Financial Results: Growth Across Merchant and Financial Solutions Segments
Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology solutions, has released its financial results for the fourth quarter and full year of 2024. The company demonstrated consistent growth, driven by robust performance in both its Merchant Solutions and Financial Solutions segments. With double-digit organic revenue growth and impressive adjusted earnings per share, Fiserv continues to solidify its position as a leader in the financial technology space.
Q4 and Full Year 2024 GAAP Highlights
For the fourth quarter of 2024, Fiserv reported GAAP revenue of $5.25 billion, reflecting a 7% increase compared to the prior year period. The Merchant Solutions segment grew by 11%, while the Financial Solutions segment saw a 3% increase. For the full year 2024, GAAP revenue reached $20.46 billion, up 7% year-over-year, with 10% growth in Merchant Solutions and 4% growth in Financial Solutions.
The company’s GAAP earnings per share (EPS) were $1.64 in Q4 2024, representing a 13% increase from the prior year. For the full year, EPS rose to $5.38, an 8% improvement over 2023. These results include notable one-time charges, such as a $595 million non-cash impairment charge related to an equity method investment and a $147 million non-cash settlement charge for terminated pension plans. In contrast, 2023 included a $172 million gain from the sale of Fiserv’s financial reconciliation business.
Operating margins also showed significant improvement. The company’s GAAP operating margin was 31.8% in Q4 2024 and 28.7% for the full year, compared to 29.4% and 26.3% in the respective periods of 2023. Segment-specific margins were particularly strong, with Merchant Solutions achieving a GAAP operating margin of 39.2% in Q4 and 37.0% for the full year, while Financial Solutions reached 51.7% and 47.3%, respectively.
Net cash provided by operating activities for the full year 2024 was $6.63 billion, underscoring the company’s strong cash generation capabilities.
Non-GAAP Metrics and Organic Growth
On a non-GAAP basis, Fiserv delivered equally impressive results. Adjusted revenue increased by 7% to $4.90 billion in Q4 2024 and by 7% to $19.12 billion for the full year. Organic revenue growth was even more robust, reaching 13% in Q4 and 16% for the full year. This growth was fueled by a 23% increase in Merchant Solutions and a 4% rise in Financial Solutions during Q4, with full-year growth rates of 27% and 6%, respectively.
Adjusted earnings per share (EPS) surged by 15% to $2.51 in Q4 and by 17% to $8.80 for the full year. Adjusted operating margins expanded significantly, rising by 180 basis points to 42.9% in Q4 and by 170 basis points to 39.4% for the full year. Both segments contributed to this margin expansion, with Merchant Solutions improving by 150 basis points to 39.2% in Q4 and Financial Solutions increasing by 320 basis points to 51.7%.
Share Repurchases and Corporate Recognition
Fiserv continued to return value to shareholders through share repurchases. In Q4 2024, the company repurchased 6.1 million shares for $1.3 billion, bringing the total for the year to 33.9 million shares at a cost of $5.5 billion. Additionally, Fiserv was named one of Fortune® World’s Most Admired Companies™ for the tenth time in 11 years, highlighting its reputation for excellence and innovation.
Outlook for 2025
Looking ahead, Fiserv remains confident in its ability to deliver sustained growth. The company expects organic revenue growth of 10% to 12% and adjusted EPS of $10.10 to $10.30 for 2025, representing a 15% to 17% increase over 2024. According to Frank Bisignano, Chairman and CEO of Fiserv, these projections reflect the early success of ongoing initiatives in both the Merchant and Financial Solutions segments.
“Our 2025 guidance reflects a continuation of our product, client, and distribution strategies and our commitment to operational excellence to drive outperformance,” said Bisignano. “We are confident in our ability to meet or beat the medium-term outlook provided at our November 2023 investor conference.”
Segment Realignment and Strategic Focus
In 2024, Fiserv realigned its reportable segments to better align with its integrated portfolio of products and solutions. The new structure includes two primary segments: Merchant Solutions and Financial Solutions. This change reflects the company’s focus on enhancing operational performance and delivering tailored solutions to its financial institution clients. Historical data for 2023 has been recast to reflect this realignment.
Earnings Conference Call Details
Fiserv will host an earnings conference call on Wednesday, February 5, 2025, at 7 a.m. CT to discuss its Q4 and full-year 2024 results. The webcast, along with supplemental financial information, can be accessed on the investor relations section of the Fiserv website at investors.fiserv.com. A replay of the webcast will be available approximately one hour after the conclusion of the live event.
About Fiserv
Fiserv, Inc. (NYSE: FI), a Fortune 500™ company, is a global leader in payments and financial technology. The company’s mission is to move money and information in ways that move the world. Through innovative solutions in account processing, digital banking, card issuer processing, e-commerce, merchant acquiring, and the Clover® cloud-based point-of-sale platform, Fiserv empowers businesses to achieve best-in-class results.
As a member of the S&P 500® Index and consistently recognized as one of Fortune’s Most Admired Companies, Fiserv continues to drive innovation and excellence in the financial services industry. For more information, visit fiserv.com and follow Fiserv on social media for the latest news and updates.
