Fiserv (FI) Q4 2024 earnings summary

Executive summary

• Adjusted EPS for 2024 was $8.80, up 17% year-over-year, with adjusted revenue growth of 7% and operating margin expansion of 170 basis points to 39.4%.

• Free cash flow reached $5.2 billion, and $5.5 billion was returned to shareholders via share repurchases, reducing average shares outstanding by nearly 5%.

• Major leadership transition: Mike Lyons named President and next CEO, ensuring continuity and focus on strategic growth.

• Strong execution on product innovation, partnerships (notably with ADP and DoorDash), and international expansion.

• Merchant Solutions led growth with 23% organic revenue increase in Q4 and 27% for the year.

Financial highlights

• Q4 adjusted revenue grew 7%, organic growth 13%; full-year adjusted revenue $19.1 billion, organic growth 16%.

• Adjusted operating margin for Q4 reached 42.9%, up 180 basis points; full-year margin 39.4%.

• Adjusted EPS for Q4 was $2.51, up 15% year-over-year.

• Free cash flow for the year was $5.2 billion, aided by working capital improvements.

• GAAP net income attributable to Fiserv was $3.1 billion for FY24.

Outlook and guidance

• 2025 guidance: 10%-12% organic revenue growth, >125 basis points operating margin expansion, 15%-17% adjusted EPS growth, ~$5.5 billion free cash flow.

• Adjusted EPS guidance for 2025 is $10.10–$10.30.

• Merchant Solutions expected to grow 12%-15% organically, driven by Clover and VAS penetration reaching 25%.

• Financial Solutions segment guidance: 6%-8% organic revenue growth, with new client wins (Target, Verizon) contributing in late 2025.

• Growth expected to be weighted toward the second half of 2025 due to new product rollouts and client implementations.