Fiserv(FI) - 2025 Q1 - Quarterly Results

Financial Performance - GAAP revenue increased by 5% to $5.13 billion in Q1 2025, with Merchant Solutions segment growing by 5% and Financial Solutions segment by 6%[2] - GAAP EPS rose by 22% to$ 1.51 in Q1 2025, with an operating margin of 27.2%, up from 24.2% in Q1 2024[3] - Adjusted revenue increased by 5% to $4.79 billion, with organic revenue growth of 7%, driven by 8% growth in Merchant Solutions and 6% in Financial Solutions[8] - Adjusted EPS grew by 14% to$ 2.14, with an adjusted operating margin of 37.8%, an increase of 200 basis points year-over-year[8] - Total revenue for Q1 2025 was $5,130 million, an increase from$ 4,883 million in Q1 2024, representing a growth of 5.05%[27] - Adjusted revenue for Q1 2025 was $4,789 million, up from$ 4,543 million in Q1 2024, reflecting a growth of 5.43%[27] - Operating income for Q1 2025 was $1,395 million, compared to$ 1,181 million in Q1 2024, marking an increase of 18.14%[27] - Adjusted operating income for Q1 2025 was $1,808 million, up from$ 1,629 million in Q1 2024, indicating a growth of 10.98%[27] - Net income for Q1 2025 was $848 million, an increase from$ 752 million in Q1 2024, representing a growth of 12.79%[30] Cash Flow and Shareholder Returns - Free cash flow was $371 million in Q1 2025, down from$ 454 million in the prior year period[8] - The company repurchased 9.7 million shares for $2.2 billion in Q1 2025[8] Future Outlook - Fiserv expects organic revenue growth of 10% to 12% and adjusted EPS of$ 10.10 to $10.30 for 2025, representing growth of 15% to 17%[6] - The company maintains its guidance for 2025, anticipating acceleration in the second half of the year[7] - The company's organic revenue growth outlook for 2025 is projected to be between 10% and 12%[45] - Adjusted earnings per share for 2025 is estimated to be in the range of$ 10.10 to $10.30, reflecting a growth of 15% to 17% compared to 2024[49] Strategic Initiatives - Four strategic acquisitions were completed in Q1 2025, including Payfare Inc. and CCV Group B.V.[8] - A new 2,000-employee fintech hub is planned to open in Overland Park, Kansas[8] Assets and Liabilities - Total assets as of March 31, 2025, were$ 80,402 million, an increase from $77,176 million as of December 31, 2024[33] - Total liabilities increased to$ 53,881 million as of March 31, 2025, compared to $49,490 million as of December 31, 2024[33] Costs and Adjustments - The company incurred$ 52 million in incremental executive compensation related to the transition of the CEO in Q1 2025[27] - The company incurred merger and integration costs of $81 million and severance costs of$ 157 million in 2024[49] - The impact of postage reimbursements on revenue is expected to be a decrease of 0.5% for 2025[45] - Currency fluctuations are anticipated to positively impact adjusted revenue by 1.5% for 2025[45] - Acquisition adjustments are expected to reduce revenue growth by 1.0% in 2025[45] - The company estimates a 5% decrease in amortization expense related to acquired intangible assets for 2025 compared to 2024[49] - The tax impact of adjustments is calculated using a tax rate of 20%, reflecting the company's effective tax rate[51]