Activist investor Jana Partners, which has held a stake in payments processor Fiserv since late 2025, sent a letter to the company urging a far more aggressive cost‑reduction plan and the adoption of Palantir’s software tools to speed up its technology overhaul.
Jana’s demands
The hedge fund argues that Fiserv’s current $500 million savings goal under its “Project Elevate” program, slated for completion by 2029, should be more than doubled to $1.25 billion. Jana wants the board to announce the higher target when the firm releases its third‑quarter earnings.
Jana also recommends that Fiserv explicitly partner with Palantir to streamline legacy systems, retire technology debt, and rationalize spending on older vendors. The letter says such a partnership would create accountability and prevent “business‑as‑usual” inertia from stalling value‑creation opportunities.
Background on Fiserv’s performance
Fiserv’s market value has fallen sharply, losing more than half of its worth in the past twelve months. The stock closed at its lowest level since February 2016 on September 23. CEO Takis Georgakopoulos, who took the helm in June, told a recent conference that the company is reviewing its businesses and may pursue additional divestitures. Earlier reports in July indicated that Fiserv was considering a sale of its payments‑infrastructure unit that processes debit‑card transactions – a move Jana welcomed.
Jana’s activist track record
Jana Partners has a history of pushing companies it invests in toward Palantir collaborations. Its managing partner Scott Ostfeld sits on the board of defense contractor Mercury Systems, which announced a strategic partnership with Palantir in August to automate factory operations for the U.S. military.
The firm also helped shape the separation of Worldpay from Fidelity National Information Services in 2024, and is currently urging medical‑device maker Cooper Companies to replace its chief executive and explore strategic options for its contact‑lens business, as well as pressing Six Flags Entertainment to consider a sale.
Potential impact
If Fiserv adopts Jana’s recommendations, the company could accelerate its technology modernization and potentially improve profitability, addressing what Jana describes as “serial mis‑forecasting and guidance reductions.” However, the board must balance a higher cost‑cut target against the risk of setting an overly ambitious goal that could be missed.
Both Fiserv and Jana declined to comment further beyond the letter. The outcome of this activist push will likely be watched closely by investors and industry observers as the payments sector continues to navigate rapid technological change and competitive pressure.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
