BlackBird Financial, a hedge fund that follows the Buffett Partnership model, disclosed a substantial ownership position in Fiserv, Inc. on January 6 2026. The move comes after a detailed review of Fiserv’s competitive position, business economics, and leadership, and it represents a new material event for the payments‑technology company.
Fiserv’s recent financial performance has been mixed. In the third quarter of 2025, the company reported GAAP revenue of $5.26 billion, up 1% year‑over‑year, and an adjusted earnings‑per‑share of $2.04, a decline of 11% from the same quarter a year earlier. The fourth quarter of 2024 saw GAAP revenue of $5.25 billion, up 7% YoY, with GAAP EPS of $1.64 and an adjusted EPS of $2.51, up 15% from the prior year. For the full year 2024, Fiserv posted GAAP revenue of $20.46 billion, up 7% YoY, and GAAP EPS of $5.38, up 8% from 2023.
The company’s guidance has been revised downward in light of recent challenges. In October 2025, Fiserv cut its full‑year 2025 organic revenue growth forecast to 3.5%‑4% from a prior estimate of about 10%, and adjusted EPS guidance to $8.50‑$8.60 from $10.15‑$10.30. Management cited slowing cyclical growth in Argentina, deferred investments, and broader softness in the fintech market as the primary reasons for the cut. The company also reported a 3% decline in its Financial Solutions segment and a 5% growth in Merchant Solutions during Q3 2025, highlighting a shift in segment mix that contributed to the overall revenue trend.
Fiserv’s business is organized into two main segments. Merchant Solutions, which includes payment processing and merchant‑acquiring services, grew 5% in Q3 2025 and 11% in Q4 2024. Financial Solutions, covering account processing, digital banking, and card processing, declined 3% in Q3 2025 but grew 3% in Q4 2024. The contrasting performance of these segments explains the overall revenue stability and the pressure on operating margins, which fell to 37.0% in Q3 2025 from 40.2% a year earlier.
CEO Mike Lyons acknowledged that the company’s recent performance fell short of expectations. In an October 2025 statement, he said, “Our current performance is not where we want it to be nor where our stakeholders expect it to be.” He added that 2026 would be a “critical investment and transition year” with low single‑digit organic revenue growth and a modest decline in adjusted EPS, but that double‑digit EPS growth is expected to resume in 2027. BlackBird spokesperson Judah Spinner praised Lyons’ leadership, noting that the company’s embeddedness in the global financial system and its role in moving billions of dollars daily provide a durable moat. Spinner said BlackBird is “fully supportive of management and the direction of the company” and that the investment reflects confidence in the long‑term trajectory of Fiserv.
The investment signals that BlackBird believes Fiserv’s underlying strengths—its deep integration with banks, merchants, and consumers, and its “One Fiserv” strategic plan—outweigh the short‑term headwinds. Investors reacted negatively to Fiserv’s Q3 2025 earnings miss and guidance cut, reflecting concerns about near‑term growth and profitability. However, the company’s cost discipline, segment mix, and strategic investments in high‑return verticals suggest that the long‑term outlook remains positive.
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