Fiserv (FI) Slipped as It Reduced Its Organic Growth and Operating Margin Targets

Renaissance Investment Management, an investment management company, released its Q3 2025 “Large Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. Stock prices continued to rally in the third quarter, with the S&P 500 climbing to all-time highs during September. The Russell 1000 Growth returned 10.5% and the S&P 500 returned 8.1% in the quarter. However, the strategy underperformed both the Russell 1000 Growth benchmark and the S&P 500. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Renaissance Large Cap Growth Strategy highlighted stocks such as Fiserv, Inc. (NYSE:FI). Fiserv, Inc. (NYSE:FI) is a leading financial technology company that provides payment and fintech services. The one-month return of Fiserv, Inc. (NYSE:FI) was -3.00%, and its shares lost 37.18% of their value over the last 52 weeks. On October 27, 2025, Fiserv, Inc. (NYSE:FI) stock closed at $126.54 per share, with a market capitalization of $68.786 billion.

Renaissance Large Cap Growth Strategy stated the following regarding Fiserv, Inc. (NYSE:FI) in its third quarter 2025 investor letter:

"Another detractor was Fiserv, Inc. (NYSE:FI), declining in the quarter after the company lowered its organic growth and operating margin targets for the year. A proliferation of multiple small factors culminated in headwinds that required the guidance reset. While the company will face near-term headwinds, it has a strong management team, and we continue to believe that its merchant solutions segment will see growth reaccelerate after working through tough growth comparisons from the last few years."

Fiserv, Inc. (NYSE:FI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 94 hedge fund portfolios held Fiserv, Inc. (NYSE:FI) at the end of the second quarter, up from 72 in the previous quarter. In the second quarter of 2025, Fiserv, Inc.’s (NYSE:FI) adjusted revenue grew 8% to $5.2 billion. While we acknowledge the potential of Fiserv, Inc. (NYSE:FI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Fiserv, Inc. (NYSE:FI) and shared the list of best fintech stocks to buy according to analysts. Vulcan Value Partners purchased a new position in Fiserv, Inc. (NYSE:FI) during Q3 2025. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.