Fiserv Inc (NYSE:FI) Plunges 32% After Q3 2025 Earnings Miss and Guidance Cut

Fiserv Inc (NYSE:FI) reported financial results for the third quarter of 2025 that fell significantly short of Wall Street's expectations, triggering a sharp decline in its stock price during pre-market trading. The financial technology provider posted results that revealed challenges in both revenue generation and profitability, leading to a substantial reset of its full-year guidance.

Earnings and Revenue Performance Versus Estimates

The company's third-quarter performance deviated markedly from analyst projections, with both top-line revenue and bottom-line earnings per share missing estimates by considerable margins.

• Revenue: Reported adjusted revenue of $4.92 billion, falling short of the analyst consensus estimate of $5.52 billion.
• Earnings Per Share (EPS): Posted adjusted EPS of $2.04, which was 22.9% below the estimated $2.65 per share.

This quarterly miss was accompanied by a reduction in the company's full-year outlook. Fiserv now anticipates full-year adjusted EPS in the range of $8.50 to $8.60, which is below the current analyst estimate of $10.48 billion in revenue and $10.07 in EPS for 2025. The company also expects organic revenue growth of 3.5% to 4% for the year.

Market Reaction and Strategic Shifts

The market's reaction to the earnings report and revised guidance was swift and severe. In pre-market trading, Fiserv's stock was down approximately 32%, reflecting investor disappointment with the company's current performance and its lowered expectations for the remainder of the year.

Concurrent with the earnings release, the company announced a new strategic action plan named "One Fiserv." This initiative is focused on five pillars: operating with a client-first mindset, building a small business platform through Clover, creating innovative platforms, delivering AI-enabled operational excellence, and employing disciplined capital allocation. CEO Mike Lyons acknowledged that the company's "current performance is not where we want it to be nor where our stakeholders expect it to be," underscoring the need for this renewed strategic focus.

Segment Performance and Financial Health

A review of the third-quarter results shows a mixed performance across the company's core business segments and several noteworthy financial activities.

• Segment Revenue: The Merchant Solutions segment saw organic revenue growth of 5%, while the Financial Solutions segment experienced a 3% decline.
• Capital Management: The company repurchased 7.2 million shares for $1.0 billion during the quarter and 29.1 million shares for $5.4 billion year-to-date.
• Acquisitions: Fiserv completed several acquisitions, including CardFree, Inc. and a portion of TD Bank's merchant processing business in Canada, aimed at expanding its Clover platform footprint.

The company also reported a decrease in free cash flow to $2.88 billion for the first nine months of 2025, compared to $3.34 billion in the prior year period.

Leadership and Outlook

Substantial changes to the company's leadership team and board of directors were announced, including the appointment of Co-Presidents and a new Chief Financial Officer, effective in the coming months. These changes appear to be part of a broader effort to steer the company toward what management calls "sustainable, high-quality growth."

The revised full-year guidance sets a new benchmark for Fiserv's performance. The disparity between the company's new EPS outlook of $8.50-$8.60 and the analyst estimate of $10.07 was a primary driver behind the negative market sentiment. For the upcoming fourth quarter, analysts are currently estimating revenue of $5.59 billion and EPS of $2.72.

For a detailed view of Fiserv's historical earnings performance and future analyst estimates, you can review the earnings and estimates data.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The information presented is based on publicly available data and should not be relied upon as the sole basis for investment decisions.