Oct 29, 2025 7:01 AM Eastern Daylight Time Fiserv Reports Third Quarter 2025 Results Share GAAP revenue growth of 1% in the quarter and 5% year to date;GAAP EPS increased 49% in the quarter and 29% year to date;Organic revenue growth of 1% in the quarter and 5% year to date;Adjusted EPS decreased 11% in the quarter and increased 6% year to date;Company now expects 2025 organic revenue growth of 3.5 to 4%and adjusted EPS of $8.50 to $8.60Launches One Fiserv action plan to prioritize and enhance client focusa ...

Core Viewpoint - Kuehn Law, PLLC is investigating potential breaches of fiduciary duties by officers and directors of Fiserv, Inc. related to misleading statements about the company's Payeezy and Clover platforms [1]. Group 1: Allegations Against Fiserv - Insiders at Fiserv allegedly misrepresented issues with the Payeezy platform, forcing merchants to migrate to Clover, which led to unsustainable revenue growth [1]. - Clover's revenue growth was temporarily inflated due to forced conversions from Payeezy, masking a slowdown in new merchant acquisitions [1]. - Following the migration, many former Payeezy merchants reportedly switched to competitors due to Clover's high pricing and poor customer service [1]. - As a result of these merchant losses, Clover's growth in gross payment volume (GPV) and revenue became unsustainable [1]. - Fiserv's positive statements during the Class Period regarding Clover's growth strategies and business prospects were claimed to be materially false and misleading [1].

Core Insights - Renaissance Investment Management's Q3 2025 "Large Cap Growth Strategy" investor letter indicates that stock prices continued to rise, with the S&P 500 reaching all-time highs in September, while the strategy underperformed its benchmarks [1] Company Performance - Fiserv, Inc. (NYSE:FI) experienced a one-month return of -3.00% and a 52-week decline of 37.18%, closing at $126.54 per share with a market capitalization of $68.786 billion as of October 27, 2025 [2] - The company lowered its organic growth and operating margin targets for the year, which contributed to its stock decline in the quarter [3] Hedge Fund Interest - Fiserv, Inc. was held by 94 hedge fund portfolios at the end of Q2 2025, an increase from 72 in the previous quarter, indicating growing interest among institutional investors [4] Financial Performance - In Q2 2025, Fiserv, Inc.'s adjusted revenue grew by 8% to $5.2 billion, showcasing its revenue-generating capabilities despite recent stock performance challenges [4]

Core Insights - Fiserv (FI) is expected to report quarterly earnings of $2.65 per share, reflecting a 15.2% increase year-over-year, with revenues projected at $5.38 billion, a 10.1% increase from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised down by 0.6% in the last 30 days, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts project 'Adjusted Revenue- Financial Solutions' to reach $2.59 billion, a 7.4% increase from the prior year [5]. - 'Adjusted Revenue- Merchant Solutions' is expected to be $2.83 billion, indicating a 14.4% increase year-over-year [5]. - 'Revenue- Processing and services' is forecasted at $4.67 billion, a 10.2% increase from the previous year [6]. - 'Revenue- Product' is anticipated to be $1.11 billion, reflecting a 13.9% increase [6]. - 'Revenue- Corporate and Other' is estimated at $330 million, showing a slight decline of 1.2% from the prior year [6]. Operating Income Expectations - 'Operating income- Financial Solutions' is expected to reach $1.29 billion, up from $1.14 billion in the same quarter last year [7]. - 'Operating income- Merchant Solutions' is projected at $1.01 billion, compared to $931 million in the previous year [7]. Stock Performance - Fiserv shares have returned -3.7% over the past month, contrasting with the Zacks S&P 500 composite's +1.3% change [7]. - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [7].

Market Overview - U.S. equities saw significant gains in Q3, driven by the Federal Reserve's first rate cut of the year, strong corporate earnings growth, and increased market participation [2] - Investor enthusiasm for artificial intelligence contributed to substantial gains in technology stocks, particularly among the "Magnificent Seven" [2] - Small-cap stocks outperformed as capital shifted into undervalued market segments, despite ongoing concerns about tariffs, inflation, and labor market softness [2] Company Highlights - Resideo Technologies, Inc. (REZI) was the top contributor in Q3, with organic revenue, EBITDA, and adjusted EPS exceeding expectations, and a positive outlook supported by demand for smart home solutions [3] - Barrick Mining Corporation (B) experienced a rise in shares due to strong financial results and rising gold prices, alongside a strategic divestiture of its Hemlo Gold Mine for $1.09 billion [4] - ZimVie, Inc. (ZIMV) advanced following an announcement of its acquisition by ARCHIMED, expected to close by year-end [5] - Mosaic Co. (MOS) was the biggest detractor from performance due to an earnings miss, with pressures from lower volumes and rising production costs, although phosphate markets are expected to remain tight through 2025 [6] - Prestige Consumer Healthcare Inc. (PBH) declined after mixed earnings results and a downward revision to guidance, but plans to strengthen supply through an acquisition of Pillar5 [7] - Schlumberger Limited (SLB) traded lower due to a challenging macroeconomic environment, with pressures from OPEC+ supply increases and geopolitical uncertainty impacting oil prices [8] New Positions and Exits - New positions included Arthur J. Gallagher & Co. (AJG), which faced pressure due to a delay in closing its $13.4 billion acquisition of AssuredPartners, but is expected to benefit from stronger synergies [10] - Fiserv, Inc. (FI) was also purchased, seen as a leading provider of payment processing and financial services technology, with a recent stock pullback providing an attractive entry point [11] - Exited positions included ZimVie, Inc., Core Laboratories, Inc. (CLB), and Bio-Rad Laboratories Inc. (BIO) to pursue more compelling opportunities [12] Economic Outlook - As Q4 approaches, U.S. markets are balancing elevated valuations against emerging macroeconomic headwinds, with the Federal Reserve's rate cut providing some support [13] - Investor sentiment remains positive, driven by AI momentum, although risks related to market concentration and policy uncertainty may lead to increased volatility [14] - There is a belief that small-cap equities may outperform large caps over the next two years, with small caps trading at historically attractive levels [14]

Core Insights - Fiserv, Inc. (FI) is set to announce its third-quarter 2025 results on October 29, before market open, with a history of exceeding earnings estimates in the past four quarters, averaging a surprise of 2.2% [1] Revenue Expectations - The Zacks Consensus Estimate anticipates a 10.2% increase in revenues year-over-year, reaching $5.4 billion [2] - Merchant Solutions is expected to generate $3 billion in revenues, reflecting a 20% year-over-year growth, primarily driven by the Clover platform and the newly launched Commerce Hub plug-in [2] - Financial Solutions revenues are estimated at $2.6 billion, indicating a 6.3% increase from the previous year, supported by higher demand for real-time payments and increased transaction volumes in STAR and ACCEL debit networks [3] - Processing and Services revenues are projected at $4.7 billion, marking a 10% rise from the year-ago quarter, while Product segment revenues are expected to reach $1.2 billion, implying a 20.5% year-over-year surge [4] Earnings Per Share (EPS) Expectations - The consensus estimate for EPS is $2.66, suggesting a 15.7% increase compared to the same quarter last year [4] Earnings Prediction Model - The current model does not predict a definitive earnings beat for Fiserv, as it has an Earnings ESP of -0.61% and a Zacks Rank of 3 (Hold) [5]

Group 1: Investment Activity - Letson Investment Management, Inc. disclosed a new stake in Fiserv, acquiring 73,166 shares valued at $9.43 million as of September 30, 2025, marking a new position for the firm [1][2] - This new position in Fiserv represents 3.38% of Letson's total reportable U.S. equity AUM of $278.74 million [2] Group 2: Company Overview - Fiserv, Inc. has a market capitalization of $68.36 billion and reported revenue of $21.11 billion and net income of $3.38 billion for the trailing twelve months [3] - The company is a leading provider of integrated payment and financial technology solutions, serving a global client base [3][4] Group 3: Financial Performance - Fiserv's Q2 sales reached $5.5 billion, reflecting an 8% year-over-year growth, which is an improvement over the 7% growth experienced in 2024 [10] - The company's share price has declined significantly, with a forward P/E ratio dropping from 17 at the end of Q2 to around 11 in October [9] Group 4: Market Position and Outlook - Fiserv's competitive advantage lies in its broad platform capabilities and deep integration across the payments and fintech value chain, providing various services including merchant acquiring and digital banking platforms [4][5] - Despite recent challenges, Letson's investment suggests a bullish outlook on Fiserv, potentially indicating a buy opportunity for long-term investors [8][10]

Core Viewpoint - Fiserv's stock price has declined by approximately 13%, underperforming the benchmark which has increased by 0.63% since the last analysis, yet the investment thesis remains unchanged, suggesting potential opportunities in Fiserv [1]. Company Analysis - Fiserv is currently facing a significant stock price decline, which may present a buying opportunity for investors who believe in its long-term potential [1]. - The analysis emphasizes the importance of macroeconomic trends and their influence on asset prices and investor behavior, indicating that Fiserv's performance may be affected by broader economic conditions [1]. Investment Strategy - The article advocates for a focus on long-term investing and the accessibility of investment strategies, encouraging investors to build confidence in their investment decisions [1]. - It highlights the importance of conducting personal research before making investment decisions, reinforcing the need for informed investment strategies [1].

Core Viewpoint - Wells Fargo and other firms have initiated coverage on various companies in the payments and technology sectors, highlighting both challenges and opportunities within these industries [1] Group 1: Payments Sector - Wells Fargo initiated coverage of PayPal (PYPL) with an Equal Weight rating and a price target of $74, noting the sector's struggles due to a shift towards AI-centric stocks and execution issues among companies [1] - Coverage was also initiated for Shift4 (FOUR) and Fiserv (FI) with Equal Weight ratings, indicating a cautious outlook on these companies [1] - Block (XYZ) received an Overweight rating and a price target of $91, with Wells Fargo identifying attractive opportunities despite the sector being challenging for investors [1] - Other companies in the payments sector, including Global Payments (GPN), FIS (FIS), Visa (V), MasterCard (MA), Affirm (AFRM), and Circle Internet (CRCL), were also given Overweight ratings [1] Group 2: Advertising and E-commerce - Deutsche Bank initiated coverage of AppLovin (APP) with a Buy rating and a price target of $705, emphasizing its strong advertising technology and expansion into e-commerce advertising, which is significantly larger than mobile game in-app advertising [1] Group 3: Renewable Energy - Needham initiated coverage of First Solar (FSLR) with a Buy rating and a price target of $286, viewing it as a leading option for investing in U.S. utility-scale solar due to favorable policies [1] Group 4: Technology and Infrastructure - Piper Sandler initiated coverage of Dell Technologies (DELL) with an Overweight rating and a price target of $172, predicting it will benefit from a strong enterprise data center refresh in 2026 and AI infrastructure developments [1] - HP Enterprise (HPE) was also covered by Piper Sandler but received a Neutral rating, indicating a less favorable outlook compared to Dell [1]

Core Insights - Fiserv, Inc. is recognized as one of the 12 best fintech stocks to buy according to analysts, with TD Cowen reaffirming a Buy rating and a price target of $188 [1][2] - The positive outlook follows Fiserv's Forum 2025 event, which highlighted the company's innovation and unification strategies aimed at enhancing growth [1][2] - TD Cowen expresses increased confidence in Fiserv's medium-term position, emphasizing the company's diverse product offerings and improved integration between its Financial Services and Merchant Solutions segments [2][3] Company Overview - Fiserv, Inc. is a global financial technology and payments company that provides solutions for banking, merchant acquiring, global commerce, billing and payments, and point-of-sale [3] - The Clover payment processing system and the Financial Services segment are noted as key components supporting Fiserv's growth momentum [3]