MILWAUKEE--(BUSINESS WIRE)--Fiserv Announces Transfer of Stock Exchange Listing to Nasdaq. ...

Core Insights - Fiserv has announced updates to its leadership team and board refreshment, indicating a strategic shift in management to enhance operational efficiency and drive growth [1] Leadership Changes - The company has appointed new executives to key positions, aiming to leverage their expertise to improve performance and innovation [1] - The board refreshment process is part of Fiserv's commitment to governance and ensuring diverse perspectives in decision-making [1] Strategic Implications - These leadership updates are expected to align with Fiserv's long-term strategic goals, potentially leading to improved market positioning and competitive advantage [1] - The changes may also reflect the company's response to evolving industry trends and customer needs, enhancing its adaptability in a dynamic market [1]

Core Insights - Fiserv reported a GAAP revenue growth of 1% in Q3 2025, reaching $5.26 billion, with a year-to-date growth of 5% to $15.91 billion [2][20] - GAAP EPS increased by 49% in Q3 2025 to $1.46, and by 29% year-to-date to $4.83 [2][22] - The company anticipates organic revenue growth of 3.5% to 4% and adjusted EPS of $8.50 to $8.60 for the full year 2025 [6][4] Financial Performance - GAAP operating margin was 27.3% in Q3 2025, down from 30.7% in Q3 2024, and 28.5% year-to-date compared to 27.7% in the previous year [3][30] - Adjusted revenue for Q3 2025 was $4.92 billion, reflecting a 1% increase, while year-to-date adjusted revenue grew by 5% to $14.90 billion [5][30] - Organic revenue growth was 1% in Q3 2025, with a 5% increase in the Merchant Solutions segment and a 3% decline in the Financial Solutions segment [5][30] Strategic Initiatives - The company launched the "One Fiserv" action plan aimed at enhancing client focus and leveraging its strengths in client service and technology solutions [4][6] - Leadership changes include the appointment of Takis Georgakopoulos and Dhivya Suryadevara as Co-Presidents, effective December 1, 2025, and Paul Todd as CFO, effective October 31, 2025 [7][8] Acquisitions and Investments - Fiserv completed the acquisition of CardFree, Inc. and the Smith Consulting Group, LLC, and has a definitive agreement to acquire StoneCastle Cash Management [10][10] - The company also acquired a portion of The Toronto-Dominion Bank's merchant processing business in Canada, expanding its Clover platform [10][10] Market Position - Fiserv was named the 1 global financial technology provider in the 2025 IDC FinTech Top 100 Rankings for the third consecutive year [10][10] - The company aims to build a pre-eminent small business operating platform through Clover and create innovative platforms in finance and commerce [10][10]

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].