Exclusive Report - Activist Investor Jana Urges Fiserv to Accelerate Cost Cutting and Adopt Palantir
Svea Herbst-Bayliss
Reuters, September 28 - According to a letter obtained by Reuters addressed to payments firm Fiserv (FISV.O), activist investor Jana Partners is urging the company to more than double its planned cost reductions and to adopt software company Palantir's (PLTR.O) products to accelerate its own technology transformation plans.
This is the latest offensive from the New York-based hedge fund, which has invested in Fiserv since the end of 2025, aimed at boosting the company's persistently underperforming share price. Two months ago, the fund had urged management and the board to launch a formal company-wide review (link), rather than attempt piecemeal asset sales.
Over the past 12 months, Fiserv’s market value has more than halved, with its share price hitting its lowest close since February 2016 on September 23.
CEO Takis Georgakopoulos—who took the role in June (link)—said at a recent meeting that Fiserv is reviewing its business and may proceed with further asset divestitures. Reports previously indicated that Fiserv was considering selling its payments infrastructure business responsible for debit card transactions (link)—a move previously welcomed by Jana.
However, according to the contents of the letter, the investment firm is looking for faster change.
A Fiserv representative did not immediately respond to a request for comment. A Jana spokesperson said they would not comment further beyond the content of the letter.
Bolder moves
Fiserv, which currently has a market capitalization of about $25 billion, has set a goal as part of its “Project Elevate” plan to save $500 million in costs by 2029. Jana believes this number could be raised to $1.25 billion—more than double the original target—and wants management to announce these more ambitious goals when releasing Q3 earnings.
Fiserv’s share price has been under pressure due to what Jana described as “a streak of missed forecasts and lowered guidance,” with Jana warning that the greater risk is the board setting targets too low and achieving them, rather than setting higher goals and potentially missing them.
The letter pointed out that through collaboration with Palantir, Fiserv could optimize its technology stack, eliminate technical debt, and rationalize spending on legacy vendors.
“As Fiserv enters the second year of the Elevate plan, we believe the board should commit to a larger cost reduction target that will have a significant impact on net profit, and explicitly use Palantir to drive accountability to ensure the opportunity for value creation doesn’t fall victim to business-as-usual inertia,” Jana wrote in the letter.
Jana has previously advised portfolio companies to adopt Palantir’s technology. Defense contractor Mercury Systems (MRCY.O)—where Jana Managing Partner and Portfolio Manager Scott Ostfeld sits on the board—announced in August a strategic partnership with Palantir aimed at automating factory operations, optimizing material planning, and expediting delivery to the U.S. military.
Jana is well versed in payments companies, having previously successfully pushed Fiserv’s competitor Fidelity National Information Services (FIS.N) to spin off its Worldpay payments business in 2024.
The hedge fund is also one of the industry’s most active activist investors. It is currently urging medical device and contact lens maker Cooper Companies (COO.O) to replace its CEO (link) and board chair, and to explore strategic investment options for its contact lens business; it’s also urging the theme park operator (link) Six Flags Entertainment (FUN.N) to consider a sale.
(To assist non-native English speakers, Reuters has automatically translated its reports into several other languages. As automated translations may contain errors or lack required context, Reuters does not guarantee the accuracy of the automated translation text and provides it solely for reader convenience. Reuters accepts no liability for any damages or losses that may result from the use of automated translation features.)
