Core Viewpoint - Fiserv's stock price has dropped significantly, with a pre-market decline of 35% following a downward revision of its earnings guidance for the year [1] Financial Performance - The company now expects adjusted earnings per share (EPS) for the year to be between $8.50 and $8.60, down from a previous estimate of $10.15 to $10.30 [1] - The CEO anticipates organic revenue growth in the low single digits for 2026, indicating a slowdown in growth [1] - Adjusted EPS is expected to slightly decline on a preliminary basis compared to 2025 [1]

Core Insights - Fiserv's CEO emphasizes the need to change the way the company forecasts and communicates its business [1] - The company plans to articulate growth drivers more clearly and enhance rigor in its forecasting [1] - 2026 is anticipated to be a pivotal year for investment and transformation [1] Financial Projections - Organic revenue is expected to grow in the low single digits by 2026 [1] - Adjusted earnings per share are projected to slightly decline from 2025 on a preliminary basis [1]

Core Viewpoint - Fiserv significantly reduced its outlook, leading to confusion among analysts regarding the extent of the cuts [1] Summary by Relevant Categories Company Performance - Fiserv's outlook revision was described by an analyst as "difficult to comprehend," indicating a substantial and perhaps unexpected change in expectations [1]

Core Viewpoint - FISERV's stock price dropped by 35% in pre-market trading following a significant downward revision of its full-year adjusted earnings per share (EPS) forecast from a range of $10.15 to $10.30 to a new range of $8.50 to $8.60 [1] Summary by Category - **Company Performance** - FISERV's adjusted EPS forecast for the year has been revised downwards to $8.50 to $8.60 from the previous estimate of $10.15 to $10.30, indicating a substantial decrease in expected profitability [1]

Core Viewpoint - Fiserv's stock plummeted by 27% in pre-market trading after the company lowered its full-year adjusted earnings per share guidance [1] Group 1 - Fiserv has revised its full-year adjusted earnings per share guidance downward, leading to significant market reaction [1]

Core Insights - Fiserv has lowered its annual revenue forecast for the second consecutive quarter, indicating ongoing challenges in its merchant business [1] Company Summary - The payments firm is experiencing slowing growth in its merchant business, which has contributed to the downward revision of its revenue expectations [1]

Core Viewpoint - FISERV's stock dropped over 18% in pre-market trading following a downward revision of its full-year adjusted earnings per share forecast from a range of $10.15 to $10.30 to a new range of $8.50 to $8.60 [1] Summary by Category - **Company Performance** - FISERV's adjusted earnings per share for the full year is now expected to be between $8.50 and $8.60, a significant decrease from the previous estimate of $10.15 to $10.30 [1] - **Market Reaction** - The company's stock experienced a pre-market decline of over 18% in response to the revised earnings forecast [1]

Financial Performance - GAAP revenue increased 1% to $5.26 billion in Q3 2025, with Merchant Solutions segment growing by 5% and Financial Solutions segment declining by 3%[2] - GAAP EPS rose by 49% to $1.46 in Q3 2025, and increased by 29% to $4.83 for the first nine months of 2025[2] - Organic revenue growth was 1% in Q3 2025, with 5% growth in Merchant Solutions and a 3% decline in Financial Solutions[7] - Adjusted EPS decreased by 11% to $2.04 in Q3 2025, but increased by 6% to $6.65 for the first nine months of 2025[7] - Total revenue for Q3 2025 was $5,263 million, a 0.9% increase from $5,215 million in Q3 2024[27] - Adjusted revenue for Q3 2025 was $4,919 million, compared to $4,884 million in Q3 2024, reflecting a growth of 0.7%[38] - Net income attributable to Fiserv for Q3 2025 was $792 million, up 40.4% from $564 million in Q3 2024[31] - GAAP earnings per share attributable to Fiserv for Q3 2025 was $1.46, a 49% increase from $0.98 in Q3 2024[31] - Operating income for Q3 2025 was $1,436 million, down 10.4% from $1,602 million in Q3 2024[27] - Adjusted operating income for Q3 2025 was $1,822 million, compared to $1,962 million in Q3 2024, a decrease of 7.1%[38] - The operating margin for Q3 2025 was 27.3%, down from 30.7% in Q3 2024[38] - The company reported a total of $1,105 million in adjusted net income for Q3 2025, compared to $1,325 million in Q3 2024, a decline of 16.6%[31] - Net income for the nine months ended September 30, 2025, was $2,677 million, an increase from $2,232 million in 2024, representing a growth of 20%[44] - Adjusted revenue for the three months ended September 30, 2025, was $4,919 million, compared to $4,884 million in 2024, reflecting a growth of 1%[49] - Organic revenue for the nine months ended September 30, 2025, was $14,958 million, a 5% increase from $14,208 million in 2024[49] Cash Flow and Investments - Free cash flow was $2.88 billion in the first nine months of 2025, down from $3.34 billion in the prior year[7] - The company reported a net cash used in investing activities of $1,897 million for the nine months ended September 30, 2025, compared to $1,740 million in 2024, indicating an increase of 9%[44] - Free cash flow for the nine months ended September 30, 2025, was $2,879 million, down from $3,344 million in 2024, indicating a decrease of 14%[52] - Cash and cash equivalents at the end of September 30, 2025, were $2,765 million, down from $3,473 million at the end of 2024, a decrease of 20.3%[44] Shareholder Actions - The company repurchased 7.2 million shares for $1.0 billion in Q3 2025 and 29.1 million shares for $5.4 billion in the first nine months of 2025[7] Debt and Assets - Long-term debt increased to $28,876 million as of September 30, 2025, compared to $23,730 million at the end of 2024, marking a rise of 21.7%[47] - Total assets as of September 30, 2025, were $79,370 million, up from $77,176 million at the end of 2024, showing an increase of 2.8%[47] Future Projections - The company expects organic revenue growth of 3.5% to 4% and adjusted EPS of $8.50 to $8.60 for 2025[9] - The company projects organic revenue growth for 2025 to be between 3.5% and 4%[57] - The estimated amortization expense for acquired intangible assets in 2025 is expected to decrease by approximately 5% compared to 2024[57] Acquisitions and Recognition - In September 2025, Fiserv acquired CardFree, Inc. and Smith Consulting Group, LLC, and entered into an agreement to acquire StoneCastle Cash Management[8] - Fiserv was named the 1 global financial technology provider in the 2025 IDC FinTech Top 100 Rankings for the third consecutive year[12]

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 - Payment processing companies Fiserv, Stripe, and Block are exploring cryptocurrencies to potentially reduce transaction costs and enhance payment options for merchants [1][2][3] Group 1: Company Initiatives - Block is focusing on enabling merchants to accept Bitcoin, while Fiserv and Stripe are targeting stablecoins, which are pegged to fiat currencies like the dollar [2] - Stripe recently announced a platform for customers to pay for subscriptions using stablecoins, indicating a shift towards digital asset integration [2] Group 2: Industry Context - The push for digital currency integration follows the signing of the Genius Act by President Donald Trump, which established a regulatory framework for stablecoins [3] - Accepting cryptocurrency payments could eliminate intermediaries like banks and credit card networks, allowing direct transactions between customers and merchants [3][4] Group 3: Cost Implications - The average credit card interchange fee is approximately 2.2%, and reducing the number of entities involved in transactions could lead to lower costs for merchants [4] - Fewer intermediaries would mean more revenue retained by payment processors and their merchant clients, presenting a potential low-cost routing option [5] Group 4: Adoption Challenges - Despite the potential benefits, the adoption of cryptocurrencies for payments faces challenges, as consumer demand is currently unclear [5][6] - There are concerns regarding the reliability of cryptocurrency transactions, including issues with reversibility and potential delays [6]