- Q3 2025 Results: Fiserv reported $5.26 billion in GAAP revenue (up 1% YoY) and adjusted EPS of $2.04, down 11% from last year gurufocus.com. Both figures fell short of Wall Street forecasts (analysts had expected about $2.65 EPS and ~$5.36 billion revenue 1 ).
- Market Reaction: FI shares plunged on the news. The stock closed around $126 on Oct. 28 ng.investing.com – roughly a 36% drop YTD. (For context, Fiserv’s stock also tumbled ~15% after its Q2 release in July 2 .)
- Lowered Guidance: Management cut its 2025 outlook, now expecting just 3.5–4% organic revenue growth and $8.50–$8.60 adjusted EPS for the year investors.fiserv.com. That is well below prior targets.
- Strategy Shift: CEO Mike Lyons unveiled a new “One Fiserv” turnaround plan and cost-saving measures to jump-start growth gurufocus.com. He warned “our current performance is not where we want it to be,” but expressed confidence that the company’s scale and new initiatives will drive “sustainable, high-quality growth” 3 .
- Fintech Context: Fiserv is pursuing new areas like stablecoins and blockchain. In June it launched its own dollar-backed FIUSD stablecoin and plans to integrate it into its platform by year-end ts2.tech. This move aligns with broader industry trends – as one Mastercard executive noted, banks are “moving forward with tokenized versions of both money and assets on blockchain networks” to cut costs and speed settlements 4 .
Background: Fiserv (NYSE: FI) is a Fortune 500 payments and fintech company (owner of Clover point-of-sale systems, etc.). Before today’s release, analysts expected a solid quarter – roughly 9% revenue growth and $2.65 EPS stockstory.org. Instead, Fiserv’s adjusted EPS came in at only $2.04 gurufocus.com, missing estimates by about $0.60. Notably, GAAP EPS was $1.46 (up 49% YoY) due to a large one-time item in last year’s quarter gurufocus.com – a quirk of accounting that masked underlying weakness in the core business.
Key Numbers: Revenue and profit details came in below forecasts. Analysts on average had expected ~$5.36 billion in revenue ng.investing.com, but even the company’s adjusted revenue was only $4.92 billion ng.investing.com. On a GAAP basis Fiserv still did about $5.26 billion gurufocus.com, up slightly, but this growth was far less than peers in payments. As one report summarized, Fiserv saw 1% revenue growth and 11% EPS decline in the quarter gurufocus.com. Merchant Solutions (retail payments) grew ~5% in Q3, but Financial Solutions (banking tech) fell ~3% gurufocus.com, highlighting mixed performance across segments.
Stock Slide: Investors sold off Fiserv stock on the earnings miss and weaker outlook. Today’s drop accelerates a longer slide: FI is down ~37% YTD ng.investing.com (investing.com figures) and recently hit its lowest forward P/E in a decade seekingalpha.com. In fact, a recent analysis notes Fiserv shares “have had a rollercoaster ride,” falling nearly 40% this year on concerns around payment trends and integration of big acquisitions simplywall.st simplywall.st. (Just last week, a Simply Wall St report pointed out the stock “climbed 3.4%” only to still be 4% lower over the past month simplywall.st.) In July 2025 Fiserv shares plunged 15% after its prior quarter, the biggest drop on the S&P 500 that day ts2.tech – a reminder of how sensitive Wall Street is to any signs of slowing growth.
Leadership Shakeup: Amid the weak results, Fiserv announced major management changes. Effective Dec. 1, longtime COO Takis Georgakopoulos and former Optum exec Dhivya Suryadevara will become Co-Presidents, sharing operational responsibilities investors.fiserv.com. The company also appointed a new CFO (Paul Todd, ex-Global Payments) to take over Oct. 31 investors.fiserv.com. The board is adding three new independent directors, including former BCE chief Gordon Nixon investors.fiserv.com. All moves underline that Fiserv’s current performance “is not where we want it to be,” as CEO Lyons candidly put it 3 .
Analysts and Forecast: Wall Street’s sentiment had already turned cautious ahead of these results. Several investment banks slashed Fiserv’s price targets in October – Rothschild to $110, Mizuho to $145 (maintaining “Outperform”), and even Goldman Sachs down to the $140s marketscreener.com – reflecting worries about slowing merchant growth. Seeking Alpha analysts still tout Fiserv as a long-term buy (citing 30% growth in its Clover POS business and a forward P/E near a decade low seekingalpha.com), but in the near term most expect the stock to struggle. At $126 today, FI trades well below the consensus target (around $170 earlier this fall stockstory.org) and offers little upside unless the company can beat its new projections.
Strategic Outlook: Management is banking on its “One Fiserv” turnaround plan to spark a recovery gurufocus.com. This initiative focuses on five pillars – from winning new clients and boosting the Clover platform, to rolling out blockchain/AI solutions and disciplined capital spending investors.fiserv.com. Notably, Fiserv is moving aggressively into digital assets: it launched a dollar-backed FIUSD stablecoin on Solana in mid-2025 ts2.tech, aiming to offer “faster, on-chain settlement” for its banking clients ts2.tech. Such moves tap into wider industry trends. As Mastercard’s blockchain chief observes, financial firms are “moving forward with tokenized versions of both money and assets on blockchain networks” to cut costs and speed up transactions ts2.tech. Fiserv’s partnerships with firms like Paxos, Circle and PayPal on stablecoins suggest it sees crypto rails as a key growth area (and the IDC named Fiserv the world’s #1 fintech provider again in Sept. 2025).
Market Context: Fiserv’s troubles come as U.S. markets are near record highs and a Federal Reserve rate cut looms ts2.tech ts2.tech. Tech giants (the “Magnificent Seven”) have been lifting the S&P 500 to new peaks ts2.tech, but fintech names like Fiserv haven’t benefited as much. With economic growth still sluggish and lending rates high, demand for bank services and merchant solutions is modest. “Investors are cautious,” notes industry commentary, and Fiserv’s results underscore that macro headwinds and competitive pressure remain.
Bottom Line: Fiserv’s Q3 results disappointed on both the top and bottom lines, and management has lowered guidance. CEO Lyons insists the company’s scale and new initiatives (Clover expansion, stablecoin integration, AI efficiencies) will pay off, but skeptics point out such turnarounds take time. In the short term, Wall Street has largely reacted negatively – with analysts trimming forecasts and the share price near two-year lows ng.investing.com simplywall.st. Some bulls still value Fiserv as an undervalued fintech play (given its strong cash flow and premium valuations to peers seekingalpha.com), but most agree that Fiserv needs to execute its “One Fiserv” plan decisively. Over the next few quarters, investors will watch closely whether client wins and cost cuts can reverse the slide, or if Fiserv simply meets its lowered targets.
Sources: Company filings and press releases investors.fiserv.com gurufocus.com; analyst previews and news (Seeking Alpha seekingalpha.com, StockStory/Yahoo Finance stockstory.org, Investing.com ng.investing.com, GuruFocus gurufocus.com, Simply Wall St simplywall.st); market analysis (TS2.tech) ts2.tech ts2.tech ts2.tech; stock price data 5 .
