Sector: Technology|Industry: Information Technology Services|Market Cap: $116.43B|Employees: 42K
Fiserv, Inc. is a leading global provider of payments and financial services technology solutions, serving clients such as merchants, banks, credit unions, and other financial institutions. The company's primary revenue streams are processing and services revenue (82% of total revenue in 2023), primarily generated from account- and transaction-based fees, and product revenue (18% of total revenue in 2023), from sales of print and card production, software licenses, and hardware. Fiserv has a strong competitive position due to the non-discretionary nature of its products and services and operates globally.
Total revenue increased to $5.215 billion, a 7% increase compared to $4.873 billion in the same quarter last year, primarily driven by a 6% increase in processing and services revenue and a 13% increase in product revenue. This growth indicates a healthy demand for Fiserv's core offerings.
Net income attributable to Fiserv, Inc. decreased by 41% YoY to $564 million, down from $952 million in the prior year period. This decline is primarily due to a $570 million non-cash impairment charge related to an equity method investment and a decrease in the income tax provision.
Operating income increased 7% YoY to $1.602 billion, up from $1.503 billion in the prior year period. Despite this growth, operating margin decreased to 30.7% from 30.8%, indicating some pressure on profitability.