Fiserv Reports Disappointing Q3 Earnings and Faces Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy FISV?
Source: NASDAQ.COM
- Earnings Decline: Fiserv's Q3 2025 earnings per share (EPS) of $2.04 fell short of Wall Street's expectation of $2.64, with revenue at $4.92 billion missing the $5.36 billion target, indicating significant operational challenges.
- Guidance Downgrade: The management has revised its full-year EPS guidance down to $8.55 from a previous range of $10.15 to $10.30, and revenue growth expectations have been slashed from 10% to a mere 3.5%-4%, reflecting a lack of confidence in future performance that could deter investors.
- Shareholder Lawsuit Risk: The company is facing a lawsuit from shareholders alleging misleading statements regarding the sales growth of its Clover payment platform, which could lead to further financial and reputational damage if the outcome is unfavorable.
- Strategic Transformation Plan: New CEO Mike Lyons has initiated the “One Fiserv Action Plan” aimed at enhancing client service and operational excellence, while also planning to leverage artificial intelligence to improve its platform; despite short-term hurdles, the long-term potential remains promising.
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Analyst Views on FISV
Wall Street analysts forecast FISV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FISV is 95.61 USD with a low forecast of 62.00 USD and a high forecast of 180.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Analyst Rating
8 Buy
20 Hold
0 Sell
Moderate Buy
Current: 58.120
Low
62.00
Averages
95.61
High
180.00
Current: 58.120
Low
62.00
Averages
95.61
High
180.00
About FISV
Fiserv, Inc. is a global provider of payments and financial services technology solutions. Its segments include Merchant Solutions (Merchant) and Financial Solutions (Financial). The businesses in its Merchant segment provide commerce-enabling products and services to companies of all sizes around the world. These products and services include merchant acquiring and digital commerce services; mobile payment services; security and fraud protection solutions; stored-value solutions; software-as-a-service; POS devices; and pay-by-bank solutions. The business lines in its Merchant segment consist of small business, enterprise, and processing. The businesses in its Financial segment provide products and services to financial institutions, corporate and public sector clients across the world, enabling the processing of customer loan and deposit accounts, digital payments and card transactions. The business lines in its Financial segment consist of digital payments, issuing, and banking.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Reaction: Fiserv shares are currently trading 12% below their 20-day simple moving average and 11.2% below their 50-day average, indicating a bearish trend in the short term, with an 8.79% decrease over the past 12 months.
- Financial Outlook: Fiserv's next earnings report is expected on February 10, with analysts estimating an EPS of $1.90, down from $2.51 year-over-year, and a revenue estimate of $4.95 billion, reflecting cautious market sentiment regarding its future growth.
- Value Opportunity: Although Fiserv trades at a P/E of 9.7x, indicating a value opportunity, analysts project a 24% decline in earnings, suggesting that investors should exercise caution in the current market environment.
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- Analyst Rating: Cantor Fitzgerald initiated coverage of Fiserv with a 'Neutral' rating, noting that while recent developments have eroded investor trust, the firm believes the company can regain footing with realistic expectations, although this may take time.
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- Leadership Change: CEO Alex Chriss's sudden departure, with Enrique Lores taking over, who previously led HP and served on PayPal's Board, may impact the company's strategic direction and investor confidence.
- Surge in Trading Volume: PayPal's trading volume reached 139 million shares, approximately 792% above its three-month average, indicating heightened investor attention and significant market volatility.
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See More
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- Sales Index Decline: The Fiserv Small Business Index for January 2026 decreased by 1 point to 143, indicating a shift in consumer spending priorities and the impact of severe winter storms, despite a year-over-year sales growth of 0.7% and a month-over-month decline of 0.5%.
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See More
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- PayPal Earnings Impact: PayPal's earnings report revealed a 4% year-over-year revenue growth to $8.68 billion, missing Wall Street's $8.80 billion estimate, which heightened investor concerns about consumer and retail merchant health, leading to a decline in Fiserv's stock.
- Market Reaction: Fiserv shares are currently trading 12% below their 20-day simple moving average and 11.2% below their 50-day average, indicating a bearish trend in the short term, with an 8.79% decrease over the past 12 months.
- Financial Outlook: Fiserv's next earnings report is expected on February 10, with analysts estimating an EPS of $1.90, down from $2.51 year-over-year, and a revenue estimate of $4.95 billion, reflecting cautious market sentiment regarding its future growth.
- Value Opportunity: Although Fiserv trades at a P/E of 9.7x, indicating a value opportunity, analysts project a 24% decline in earnings, suggesting that investors should exercise caution in the current market environment.
See More
Fiserv Shares Plunge 67% to Historic Low
- Stock Price Plunge: Fiserv's shares fell over 67% last year, marking a historic low, reflecting market concerns over cautious consumer spending and intensified competition in the fintech sector, which severely undermined investor confidence.
- Earnings Forecast Downgrade: The company expects adjusted earnings per share for 2025 to range between $8.50 and $8.60, significantly down from the previous forecast of $10.15 to $10.30, indicating the growth challenges and market pressures it faces.
- Analyst Rating: Cantor Fitzgerald initiated coverage of Fiserv with a 'Neutral' rating, noting that while recent developments have eroded investor trust, the firm believes the company can regain footing with realistic expectations, although this may take time.
- Retail Sentiment Shift: Despite the stock's decline, retail investor sentiment for Fiserv shifted from 'bearish' to 'bullish' in the past 24 hours, with message volume surging 925%, indicating some investors' optimism for a potential rebound.
See More
PayPal Shares Plunge 20% After Earnings Miss Expectations
- Earnings Miss: PayPal's Q4 2025 results revealed revenue of $6.7 billion and adjusted EPS of $1.23, both falling short of analyst expectations, leading to a 20.31% drop in stock price and a market cap reduction to $49 billion, highlighting significant growth challenges ahead.
- Leadership Change: The sudden departure of CEO Alex Chriss, replaced by Enrique Lores, former CEO of HP, may impact the company's strategic direction, prompting investors to closely monitor how the new leadership addresses current challenges and market expectations.
- Surge in Trading Volume: Trading volume soared to 139 million shares, approximately 792% above the three-month average of 16 million shares, indicating a strong market reaction to PayPal's outlook, which could trigger further investor scrutiny and potential sell-offs.
- Market Reaction: PayPal's disappointing performance has led to a reassessment of the entire payment sector, with competitor Fiserv's stock dropping 7.66%, reflecting a decline in investor confidence across payment stocks and potentially affecting industry valuations.
See More
PayPal's Earnings Miss Expectations, Stock Plummets
- Earnings Shortfall: PayPal's Q4 2025 earnings report revealed revenue of $6.7 billion and adjusted EPS of $1.23, both falling short of analyst expectations, resulting in a 20.31% stock drop that reflects market concerns over future growth.
- Leadership Change: CEO Alex Chriss's sudden departure, with Enrique Lores taking over, who previously led HP and served on PayPal's Board, may impact the company's strategic direction and investor confidence.
- Surge in Trading Volume: PayPal's trading volume reached 139 million shares, approximately 792% above its three-month average, indicating heightened investor attention and significant market volatility.
- Sector Reassessment: PayPal's weak outlook prompted a reevaluation of the entire payment sector, with rival Fiserv's stock declining by 7.66%, highlighting widespread market concerns regarding payment stocks.
See More
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- Fintech Stocks Performance: Fintech stocks, particularly SoFi Technologies and Affirm Holdings, received positive attention from Wall Street on Tuesday.
- Upgrades and Accolades: Both companies notched upgrades and accolades, indicating a favorable outlook from analysts and investors.
See More
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- Sales Index Decline: The Fiserv Small Business Index for January 2026 decreased by 1 point to 143, indicating a shift in consumer spending priorities and the impact of severe winter storms, despite a year-over-year sales growth of 0.7% and a month-over-month decline of 0.5%.
- Consumer Traffic Drop: Consumer foot traffic saw its sharpest year-over-year decline of 2.0%, the largest since mid-2022, with a month-over-month drop of 0.8%, leading to significant slowdowns in sales across restaurants, hotels, and various retail categories.
- Growth in Professional Services: While overall sales slowed, the Professional and Administrative Services sector showed resilience, with Administrative and Support Services growing by 1.1% month-over-month and Tax Preparation Services experiencing a year-over-year growth of 9.3%, indicating strong demand in specific service areas.
- Retail Market Stability: Small business retail sales remained flat, with core retail categories such as groceries, clothing, and furniture showing a year-over-year increase of 1.5%, while non-core retail categories declined by 2.7%, suggesting consumers are becoming more selective in their spending habits.
See More
