Shock Selloff: Fiserv (FI) Stock Plunges 40% After ‘Shockingly Bad’ Q3, Major Shakeup Unveiled
On Oct. 29, Fiserv reported a severely underwhelming third quarter. Adjusted EPS was just $2.04, about $0.60 below analyst forecasts, on revenue of $4.92B vs. $5.36B expectedng.investing.com. In GAAP terms, earnings were $1.46 and revenue $5.26Bts2.tech, boosted by one-time items last year, but these obscured weakening core trends. Organic growth virtually stalled after mid-single-digit gains in Q2ts2.tech. Fiserv cited a steep fall in its Argentine peso business and softer merchant volumes for the shortfall. CEO Mike Lyons – on the job only since May – acknowledged the miss was “not where we want it to be nor where our stakeholders expect it to be”ts2.tech. In tandem with the report, management slashed full-year guidance. Fiserv now forecasts just 3.5–4% revenue growth in 2025 and $8.50–$8.60 in adjusted EPS, down from prior targets of ~10% growth and ~$10.20 EPSreuters.com. Lyons said the firm ran “unrealistic” assumptions on volume and new product launches; he’s rolling out a “One Fiserv” turnaround plan to refocus on sustainable, client-first growthts2.techpaymentsdive.com. In effect, Fiserv is shifting away from costly short-term initiatives toward a more disciplined strategy. As CFO Bob Hau put it, the reset reflects “aligning structural versus cyclical growth” and will “negatively impact near-term results”paymentsdive.com.
