Fiserv shares plunged 43% on Wednesday, marking their
steepest one-day decline on record. The payments technology firm reported
weaker-than-expected quarterly results and lowered its growth outlook for the
second consecutive quarter. The company’s latest downgrade and soft performance
drew sharp criticism from analysts, who described the results as significantly
below expectations.

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The poor showing underscored mounting challenges across
Fiserv’s core payments and merchant businesses, which continue to face
competitive pressures and softer consumer spending. Alongside the results, the
company unveiled a leadership shake-up, naming a new chief financial officer
and two co-presidents as part of a broader effort to reset its strategy under
new management.

Fiserv cut its 2025 guidance after
reporting modest third-quarter growth. The payments technology company is moving to streamline operations and refocus on client relationships under a new
strategic plan. Fiserv posted adjusted earnings of $2.04 per share for the third quarter, missing analyst expectations of $2.64 per share, based on LSEG data.

Revenue Flat as Merchant Segment Offsets Financial
Unit Decline

The company said GAAP revenue rose 1% year-on-year to
$5.26 billion in the third quarter, with growth in Merchant Solutions offset by
a decline in Financial Solutions. For the first nine months of 2025, revenue
increased 5% to $15.91 billion.

GAAP earnings per share climbed 49% to $1.46,
benefiting from the absence of last year’s impairment charge. Operating margin
narrowed to 27.3% from 30.7% a year earlier.

Adjusted results told a similar story. Adjusted EPS
fell 11% to $2.04, while organic revenue rose 1% in the quarter and 5% year to
date. The company’s free cash flow totaled $2.88 billion, below the $3.34
billion generated a year earlier.

Fiserv’s deal activity continued to support its
platform expansion. In recent months, the firm acquired CardFree and Smith
Consulting Group while agreeing to purchase StoneCastle Cash Management. Pending regulatory approval, the transaction is expected to close by early 2026.

Leadership Changes

In Canada, Fiserv also purchased part of TD Bank’s
merchant processing business, extending Clover’s footprint and deepening its
technology partnership with TD Bank through a multi-year managed services
agreement. Alongside its financial results, Fiserv announced a
refresh of its leadership and board.

Takis Georgakopoulos and Dhivya Suryadevara will
become Co-Presidents in December 2025, while Paul Todd, formerly of Global
Payments, will take over as Chief Financial Officer at the end of October. Outgoing CFO Bob Hau will remain a senior advisor through early 2026 to ensure a
smooth transition.

Fiserv now expects organic revenue growth of 3.5% to
4% and adjusted EPS between $8.50 and $8.60 for 2025, down from earlier
projections. The revised guidance reflects near-term softness but positions the
company for what management views as a more sustainable trajectory under its
new strategy.

This article was written by Jared Kirui at www.financemagnates.com.

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