Are FI's earnings surprises a sign of strength?

**Fiserv's (FI) earnings surprises are a sign of strength**, and here's why: 1. **Consistent Performance**: Fiserv has a history of beating earnings estimates, with an average surprise of 2.07% over the last two quarters. This consistency indicates a strong financial performance and suggests that the company is exceeding market expectations. 2. **Strategic Positioning**: Fiserv's strategic positioning at the intersection of merchant and financial institution ecosystems has allowed it to capitalize on increased consumer spending and digital transformation trends. This strategic approach has reinforced its solid market momentum and leadership, contributing to its strong earnings performance. 3. **Financial Growth**: The company's financial statements show robust growth in organic revenues and profitability. For instance, the Financial Technology segment reported a 15% year-over-year growth in organic revenues, primarily driven by the impressive strength of its merchant solutions segment. 4. **Analyst Confidence**: Analysts have a "Strong Buy" rating for Fiserv, with a consensus adjusted EPS growth forecast of 16.6% year-over-year for the current fiscal year. This confidence is bolstered by Fiserv's track record of surpassing analysts' bottom-line estimates in the past four quarters. 5. **Earnings Guidance**: Fiserv's 2025 adjusted EPS guidance of $10.10–$10.30 exceeds the consensus estimate of $10.17. This guidance indicates that analysts believe the company will continue to perform strongly in the near future. In conclusion, Fiserv's earnings surprises are a clear sign of strength, reflecting the company's strategic positioning, financial growth, and analyst confidence in its continued success.