Fiserv Inc. suffered its steepest one-day decline on record this week, with shares plummeting 43% on Wednesday following disappointing quarterly results and a reduced outlook for 2025.
The payments technology company’s performance and downgraded forecast marked its second downward revision in as many quarters, intensifying investor concerns about the health of its core business lines.
Analysts reacted sharply to the announcement, calling the figures “well below expectations” and warning that the company faces deeper structural challenges in both its payments and merchant segments.
Leadership Shake-Up Amid Strategic Overhaul
In a move to restore investor confidence, Fiserv announced a significant leadership reshuffle alongside its earnings release.
Takis Georgakopoulos and Dhivya Suryadevara will assume the roles of Co-Presidents in December 2025, while Paul Todd, formerly with Global Payments, will step in as Chief Financial Officer at the end of October.
Outgoing CFO Bob Hau will continue as a senior advisor through early 2026 to ensure a smooth transition.
The leadership changes come as part of a broader effort to reposition Fiserv’s strategy under new management, with a renewed focus on operational efficiency and customer engagement.
Revenue Growth Slows as Merchant Business Cushions Declines
Fiserv’s third-quarter report showed modest growth, missing Wall Street forecasts and prompting a cut to its full-year guidance.
Adjusted earnings came in at $2.04 per share, below analyst expectations of $2.64 per share, according to LSEG data.
Revenue for the quarter rose just 1% year-on-year to $5.26 billion, with gains in the Merchant Solutions division offsetting a decline in Financial Solutions.
For the first nine months of 2025, total revenue rose 5% to $15.91 billion.
GAAP earnings per share climbed 49% to $1.46, helped by the absence of impairment charges recorded last year.
However, operating margin narrowed to 27.3% from 30.7% a year ago, signaling tighter profitability.
Adjusted EPS fell 11% from the previous year, while organic revenue grew 1% in the third quarter and 5% year to date.
Free cash flow declined to $2.88 billion, compared with $3.34 billion a year earlier.
Acquisitions Strengthen Platform Expansion
Despite recent headwinds, Fiserv continued its acquisition strategy to enhance platform capabilities and regional reach.
The company acquired CardFree and Smith Consulting Group earlier this year and recently agreed to purchase StoneCastle Cash Management.
That transaction is expected to close by early 2026, pending regulatory approval.
In Canada, Fiserv also completed the purchase of a portion of TD Bank’s merchant processing business, expanding the reach of its Clover payment solutions and strengthening a long-term managed services partnership with TD Bank.
Revised Guidance Reflects Near-Term Pressures
Looking ahead, Fiserv now expects organic revenue growth between 3.5% and 4% and adjusted earnings per share between $8.50 and $8.60 for 2025.
This guidance represents a downward revision from earlier projections, reflecting continued softness in spending and competitive pressure in the payments landscape.
Management emphasized that the updated forecast is part of a plan to establish a more sustainable growth trajectory as the company repositions under new leadership.
