Earnings Roundup: Fiserv, FIS, and Jack Henry

Earnings Roundup: Fiserv, FIS, and Jack Henry

May 14, 2025

In Q1 2025, the industry’s core banking giants Fiserv, FIS, and Jack Henry demonstrated strategic focus on recurring revenue, modernizing their core banking platforms, and expanding cloud-based service delivery. However, Fiserv is distinct in its aggressive merchant services expansion and global embedded finance positioning, driven by Clover and Finxact. FIS, in contrast, is returning its scope to banking and capital markets. Jack Henry remained grounded in community banking, although it has started to push upmarket with some of its solutions.

In the last quarterly earnings cycle for core providers:

Fiserv

In Q1, Fiserv’s organic revenue increased 7% to $4.9 billion. Net income of $851 million rose nearly 16% from the prior year. Fiserv has leaned into its Merchant Solutions business via Clover and Carat, making acquisitions globally, and has started framing bundles of issuing, payment processing, and account processing products and services as embedded finance solutions, further integrating its businesses.

Most relevant to financial institutions (FIs) are merchant services partnerships, Fiserv’s small-business banking push with CashFlow Central and XD, and its focus on strategic cores, including CoreAdvance, Finxact, and DNA.

Fiserv plans to sign more FIs as merchant referral partners, introduce new products across Merchant Solutions, expand that business internationally, and add more enterprise clients to Carat. Currently, it has merchant referral partnerships with 40 of the top 100 financial institutions.
It is advancing “embedded finance” by bundling merchant acquiring, card issuing, and Finxact. It noted that its “marquee win” is DoorDash.
Fiserv’s acquisition of Payfare augments the company’s embedded finance offerings with card program management, a cloud-native orchestration platform, and a white-label mobile app.
It closed the acquisition of CCV Group to expand its footprint in Europe and deployment of Clover. The company also acquired Pinch Payments, a payment facilitator headquartered in Australia, to expand its merchant services business in the Asia-Pacific region.
Fiserv added the Target Circle card portfolio to its credit card account processing platform, Optus. It also renewed several relationships including Fred Financial and CardWorks. Its issuing business now has over 1.7 billion accounts on file, which it says makes it nearly twice as large as its closest competitor.
It introduced CoreAdvance for community financial institutions, consolidating Premier, Precision, and Cleartouch.
Outside the US, it is expanding the footprints for Finxact and Signature Next.
The company is pushing CashFlow Central and XD for small business banking, integrations with Clover, and merchant acquiring on the backend.
Fiserv affirmed its 2025 organic revenue growth outlook of 10% to 12% and adjusted EPS outlook of $10.10 to $10.30, or growth of 15% to 17%.

FIS

In Q1, FIS reported a 3% increase in revenue to $2.5 billion, driven by new sales and higher transaction volumes, with net income of $77 million. Growth in Banking Solutions was led by demand for core and digital banking, while Capital Markets growth came from recurring revenue and new client expansion.

The company is returning to its core competencies of banking and capital markets, selling its remaining stake in Worldpay and acquiring Global Payments’ Issuer Solutions business. This shift better aligns with FIS’ business in card issuing and processing, where it serves banks and select retailers, rather than competing with Fiserv in the merchant services space.

FIS announced that it would acquire Global Payments’ Issuer Solutions business for $12 billion, including a $1.5 billion tax benefit, and sell its 45% stake in WorldPay to Global Payments for $6.6 billion pre-tax. Those will close in the first half of 2026.
It said FIS continues to see strong demand for its core solutions and expects another year of solid sales. To that end, recent wins include a $15 billion East Coast commercial bank selecting IBS as part of an evaluation following an acquisition.
On the digital side, a $15 billion Midwest community bank selected Digital One to help the bank improve its branch teller technology.
In the quarter, the company also signed a large multinational corporation for its FIS treasury management solution.
Management says it is keeping an eye on tariffs and economic activity, but because of its products’ stickiness and recurring revenue, any impact should be muted.
FIS has said that it is strategically investing in “cloud-native cores” but has yet to start talking about a public cloud-native product.
The company reiterated its outlook of revenue growth of 4.6% to 5.2% for 2025 and adjusted EPS growth of 9% to 11%.

Jack Henry (Fiscal Q3)

Jack Henry’s revenue increased nearly 9% to $585 million in its fiscal Q3 (ended March 31, 2025). Net income was $111 million, up almost 28%. The company emphasized its high mix of recurring revenue and strong growth in its cloud (predominantly ASP) offerings to 33% of total revenue. The company identified a trend upmarket as it successfully sells cores to larger institutions.

The company is seeing continued migrations of existing customers from in-house processing to ASP, with 76% now using that delivery model.
Jack Henry says it is on track for an H1 2026 launch of its public cloud-native consumer and commercial deposit-only core, ahead of schedule. 15 core components are live, and many are used internally and externally.
The company signed 29 new platform clients in Q3 for Banno Digital, which now totals over 1,000 clients, including 270 that are live with Banno Business.
Jack Henry Rapid Transfers, an instant account-to-account money movement product, is expanding from beta with three customers to all Banno customers.
An SMB merchant acquiring beta with Moov is planned for June 2025, with a broader rollout planned for FY 2026. Jack Henry said the solution delivers many distinguishing features for merchants, including instant decisioning, tap-to-pay for both iOS and Android devices, the option to receive settlement funds up to eight times per day, and continuous account reconciliation.
An enterprise deposit and loan origination product is in closed beta with early adopter clients and has seen some interest from non-Jack Henry clients.
Real-time payments adoption among Jack Henry clients is rising, with RTP clients up 37% to 384 and FedNow clients up 96% to 370.
Management says that Jack Henry has limited direct exposure to tariffs and is watching the health of commercial banking and businesses for any effects.
The company expects revenue for the full fiscal year to come in north of $2.3 billion, with EPS of $6.00 to $6.09.

Some common themes across vendors include:

“Cloud” is a trend, but it doesn’t mean the same thing to everyone. All three vendors often mention private “cloud” in the sense of the ASP model, reframing old services with a newer term. However, with Finxact, Fiserv has made the leap to the public cloud, and Jack Henry is rolling out public cloud-native products, namely the core banking solution mentioned above.
The largest vendors are focused on strategic cores. FIS and Fiserv, while they continue to support over a dozen cores acquired over the years, are each focusing on a handful with new sales and may in the future nudge customers to convert. Jack Henry’s list of cores is already short.
Embedded finance is a priority. Both FIS and Fiserv are active in embedded finance, at Fiserv with a major enterprise embedded finance partnership and synergies between Finxact and First Data. FIS has a dedicated BaaS platform, and Jack Henry several years ago announced a partnership with MVB Bank’s Victor for Payments-as-a-Service.
Vendor M&A may normalize. Big acquisitions and divestitures have marked the industry over the last 6 years, with Fiserv’s acquisition of First Data in 2019, FIS’ pending divestiture of Worldpay, and its pending acquisition of Global Payments’ Issuer Solutions. However, the tide might be shifting — chatter across all three vendors now seems to be centering on smaller strategic acquisitions.

Earnings Roundup: Fiserv, FIS, and Jack Henry

Earnings Roundup: Fiserv, FIS, and Jack Henry

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