Fiserv Raises Revenue Outlook Following 108% Surge in Q3 EPS

<p>The payments and financial services technology firm
Fiserv has reported impressive results for the third quarter of 2023,
highlighting an increase of 8% year-over-year in revenue to $4.87 billion.</p><p>This growth was especially notable in Fiserv's
Acceptance segment, which reported a 12% increase. The firm's <a href="https://www.financemagnates.com/terms/f/fintech/">Fintech</a> and
Payments segments grew by 4% and 5%, respectively.</p><p><a href="https://www.financemagnates.com/tag/fiserv/" target="_blank" rel="follow">Fiserv</a>'s growth trend extends throughout the year, with
GAAP revenue for the first nine months of 2023 increasing by 8% to $14.18
billion compared to the prior year. The Acceptance segment was the major
contributor, with an 11% increase, while the Fintech segment recorded a 1%
growth, and the Payments segment had an 8% growth.</p><p>Fiserv Reports Growth in EPS</p><p>Furthermore, the company's GAAP earnings per share
soared to $1.56 in Q3 2023 and $3.54 in the first nine months of 2023, marking
an increase of 108% and 32%, respectively, compared to the same period in the
previous year. </p><p>Frank Bisignano, the Chairman, President, and Chief
Executive Officer at Fiserv, said: "Fiserv again delivered very strong
financial results across the board, demonstrating our superior business model.
We continued our leadership in <a href="https://www.financemagnates.com/terms/p/payments/">payments</a> through a broad portfolio of solutions,
which is essential to the flow of commerce and money movement for our diverse
client base around the world."</p><p>Fiserv's GAAP operating margin also showed
substantial growth, with a figure of 30.8% in the third quarter and 25.2% in the
first nine months of 2023, compared to 18.9% and 19.5% in <a href="https://www.financemagnates.com/fintech/fiserv-upbeat-as-revenue-jumps-10-to-859b-in-first-half-of-2022/" target="_blank" rel="follow">2022</a>. Notably, the Q3 and first nine months of 2023 results included a pre-tax
gain of $177 million related to selling the company's financial reconciliation
business.</p><p>Cash Flow, Earnings, and Strategic Moves</p><p>The company's strong performance extended to its
cash flow, with net cash provided by operating activities surging by 19% to
$3.57 billion in the first nine months of 2023, compared to $2.99 billion in
the prior year.</p><p>The company's adjusted <a href="https://www.financemagnates.com/forex/education-centre/earnings-per-share-eps-a-comprehensive-guide/" target="_blank" rel="follow">earnings per share</a> witnessed a significant boost, increasing by 20% to $1.96 in Q3 and by 16% to
$5.34 in the first nine months of 2023 compared to the previous year. The adjusted
operating margin showed strong growth, with a 290 basis point increase to 38.1%
in Q3 and a 250 basis point increase to 36.1% in the first nine months of 2023.</p><p>In September 2023, Fiserv acquired the remaining 49%
ownership interest in European Merchant Services B.V., a Netherlands-based
merchant acceptance business. </p><p>Fiserv has raised its full-year 2023 outlook, now
expecting a growth of 11% in revenue and a growth of 15% to 16% in the adjusted
earnings per share, with a range of $7.47 to $7.52 per share.</p>

This article was written by Jared Kirui at www.financemagnates.com.