Fiserv, Inc. FI has had a remarkable run over the past year. The company’s shares have jumped 40.5% in that period compared with its industry and the Zacks S&P 500 composite’s growth of 16.3% and 7.9%, respectively.

FI’s revenues are expected to rise 9.3% year over year in 2025 and 8.9% in 2026. Its earnings are estimated to increase 16.4% in 2025 and 17.2% in 2026.

Fiserv’s Earnings Surprise Positive

FI registered an impressive earnings surprise in the trailing four quarters. The company delivered a trailing four-quarter average earnings surprise of 2.9%, which outpaced the Zacks Consensus Estimate.

FI’s Estimates Trend Northward

Two estimates for 2025 have moved north in the past 60 days against no southward revision, reflecting analysts’ confidence in the company. At the same time, the Zacks Consensus Estimate for 2025 earnings has increased from $10.23 per share to $10.24.

Fiserv Gains From Recurring Revenues Business Model

FI’s recurring-based business model boosts the Merchant Solutions segment’s revenues. Per the company, more than 25,000 financial transactions per second take place during peak processing volumes. This transactional volume creates a consistent revenue stream. Clients pay subscription fees to operate Clover, which adds to the top line. In 2024, processing and service revenues contributed 81% to the top line, driven by account-and-transaction-based fees under multi-year contracts that have high renewal rates.

Buyouts Expand FI’s Product Portfolio

The company acquired Skytef and Sled in 2023 for $17 million, which facilitated the expansion of Fiserv’s distribution network, point-of-sale (POS) and direct payment services. The April 2022 buyout of Finxact boosts FI’s digital banking strategy by helping it offer smooth and bespoke digital banking experiences to its clients. In 2022, the company acquired OrangeData (Yacaré), NexTable and City POS, which boosted the acceptance segment.

Share Repurchases Boost Fiserv Investors’ Morale

In 2021, 2022, 2023 and 2024, FI repurchased shares worth $2.6 billion, $2.5 billion, $4.7 billion and $5.5 billion, respectively. Such moves have a positive impact on earnings per share, instilling investors’ confidence.

FI’s Zacks Rank & Other Stocks to Consider

Fiserv carries a Zacks Rank #2 (Buy) at present.

Investors interested in the Zacks Business Services sector may look at some other top-ranked stocks like Amadeus IT Group, S.A. AMADY and AppLovin APP, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Amadeus IT Group has a long-term earnings growth expectation of 6.8%. AMADY delivered a trailing four-quarter earnings surprise of 9.4%, on average.

AppLovin has a long-term earnings growth expectation of 20%. APP delivered a trailing four-quarter earnings surprise of 23.5%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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