Fiserv CEO Sees Clearer Results Ahead as Company Targets $1 Billion in Savings

Key Points

• Fiserv expects financial results to become more predictable from the fourth quarter as one-time revenue fluctuations ease; the CEO says at least 85% of revenue is recurring.
• The company estimates $1 billion in savings over three years through Project Elevate, including closing or restructuring underperforming units and consolidating its debit networks. It has not changed its long-term guidance and plans to provide 2027 guidance with fourth-quarter results.
• Fiserv is pursuing growth through Clover’s value-added services and enterprise expansion, while addressing elevated bank-client attrition. It also plans $500 million in share repurchases in the fourth quarter.

Fiserv NASDAQ: FISV expects its financial results to become more predictable as it moves past the effects of elevated nonrecurring revenue, CEO Takis Georgakopoulos said during a discussion with Citi fintech analyst Bryan Keane.

Georgakopoulos said underlying recurring revenue and transaction-volume growth remained relatively stable while fluctuations in nonrecurring revenue created noise in recent quarters. He expects cleaner comparisons beginning in the fourth quarter, following signs of normalization in the financial segment during the third quarter.

“We should not be in a situation like the one that we were for the past several quarters,” he said, adding that Fiserv would be more transparent about one-time items. He said 85% or more of the company’s revenue is recurring.

Portfolio Review and Cost Savings

Fiserv plans to shut down more than a dozen smaller businesses or profit-and-loss units with little growth or profitability, Georgakopoulos said. The company is also exploring alternative ownership structures for several larger, nonstrategic assets, though he said it was too early to quantify potential sales.

Fiserv intends to move clients from its two debit networks onto one over the next few quarters. It will then seek a buyer for the emptied network or reduce its costs if a sale does not make sense. Georgakopoulos emphasized that retaining a debit network remains a competitive advantage.

The CEO described $1 billion as the company’s best estimate for three-year savings under Project Elevate, while noting that some initiatives, such as decommissioning legacy platforms, could take longer. He said portfolio rationalization accounts for much of the increase from the earlier $500 million figure and gave a rough breakdown of the $1 billion among artificial intelligence, organizational focus and process automation.

Fiserv did not revise its long-term guidance after increasing the savings estimate. Georgakopoulos said the company would balance cost reductions with technology investment as conditions change and plans to provide 2027 guidance with fourth-quarter results.

Clover and Enterprise Growth

Fiserv is counting on greater use of value-added services to help lift Clover revenue growth above processing revenue growth. Keane said third-quarter Clover processing revenue grew 12%, below the company’s 15% to 20% Clover revenue target.

Georgakopoulos pointed to Clover Capital, the newly launched Clover Savings product and opportunities in health care and retail. He also said Clover for Enterprise is scheduled to launch in 2027, allowing Fiserv to serve larger merchants and retain customers as their needs become more complex.

Internationally, Clover is in a pilot in Japan and is expected to go live in the first quarter of 2027 with a local banking partner. Georgakopoulos said Fiserv wants to replicate elements of its approach in markets including Europe and the U.K.

For enterprise merchants, Georgakopoulos said gross payment volume on Commerce Hub is doubling annually, although the platform remains a small part of the overall business. He cautioned that long sales cycles mean it will take time for new enterprise business to materially accelerate companywide growth.

Banking, Digital Payments and Capital Allocation

Georgakopoulos said banking-client attrition improved throughout 2026 and accelerated in the third quarter, though it remains elevated relative to the company’s long-term average. He attributed progress to investments in platform stability, customer service and more constructive client discussions. Platform incidents were down 75% year over year, he said.

In digital payments, the CEO said declining legacy bill-payment revenue remains a headwind. He expects growth from products including CashFlow Central, which he said has 60,000 small-business users and has seen double-digit growth in revenue per user.

Fiserv plans to buy back $500 million of shares in the fourth quarter and expects repurchases to remain an attractive use of free cash flow in 2027, Georgakopoulos said. The company continues to target leverage below three times and plans to announce its 2027 capital-allocation plan with fourth-quarter earnings.

About Fiserv (NASDAQ:FISV)

Fiserv is a financial technology company that provides payment and financial services technology to banks, credit unions, businesses and merchants. Its offerings include payment processing, digital banking, account processing, debit and credit card services, and tools that help financial institutions manage customer accounts and transactions. For merchants, Fiserv offers Clover, a platform that combines point-of-sale hardware and software with payment acceptance and business management tools. The company also provides services for processing digital and in-person payments and supporting commerce across multiple channels.

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