Activist Jana Presses Fiserv to Lift Cost-Cut Target to $1.25 Billion and Tap Palantir

Activist investor Jana Partners is urging FISV to more than double the cost savings it has already committed to, according to a Reuters exclusive published September 28. Fiserv has earmarked $500 million in savings by 2029 under its "Project Elevate" program; Jana argues that figure could be raised to $1.25 billion over the same horizon, and wants management to unveil the more aggressive target when it reports third-quarter earnings.

The second plank of the campaign is technology. Jana wants Fiserv to "explicitly leverage Palantir" (PLTR) so that opportunities for value creation "do not fall victim to the inertia endemic in 'business as usual'". As reported, the Palantir ask is a cost lever rather than a revenue play: the idea is to map Fiserv's systems, retire technology debt and rationalize spending with legacy vendors.

The backdrop explains the timing. Fiserv has lost more than half of its market value over the past 12 months, and on September 23 the stock recorded its lowest close since February 2016, leaving the company valued at roughly $25 billion, per the Reuters report. Coverage attributes the slide to repeated forecast misses and lowered guidance, and Fiserv had already signaled it is reviewing parts of its business and could consider further divestments. A Fiserv representative did not immediately respond to a request for comment.

What to watch: whether Fiserv adopts a higher savings target at its third-quarter report, as Jana is asking, and whether any formal Palantir engagement follows. A board response, or a move by Jana to escalate the campaign, would indicate how much leverage the activist has at a company whose shares are near decade lows.