Fiserv Q3 Earnings Miss Estimates, Revenues Decline 6% Y/Y

Fiserv, Inc. FI has reported dismal third-quarter 2025 results, wherein earnings and revenues missed the Zacks Consensus Estimate.

FI’s adjusted earnings per share of $2.04 missed the consensus mark by 22.7% and declined 11.3% year over year. Adjusted revenues of $4.9 billion missed the consensus estimate by 8.2% and declined 5.7% on a year-over-year basis.

FI stock has declined 36.8% in a year compared with the industry’s marginal drop and the Zacks S&P 500 composite’s rise of 20.8%.

Fiserv's Quarterly Details

Processing and services’ revenues were $4.3 billion, up marginally on a year-over-year basis, but missing our estimate of $4.7 billion. Revenues in the Product segment were $990 million, rising 1.2% from the year-ago quarter and missing our projection of $1.2 billion.

Revenues from Merchant Solutions were $2.6 billion, increasing 4.7% year over year. However, the figure missed our estimate of $3 billion. The Financial Solutions segment reported revenues of $2.3 billion, marking a 3.3% decrease from the year-ago quarter and missing our projection of $2.6 billion.

The operating margin for the Merchant Solutions segment was 37.2%, down 50 basis points (bps) on a year-over-year basis. The Financial Solutions segment’s operating margin was 42.5%, decreasing 510 bps from the year-ago quarter.

Balance Sheet & Cash Flow of FI

Fiserv exited the third quarter with cash and cash equivalents of $1.1 billion compared with $999 million in the second quarter of 2025. The long-term debt was $28.9 billion compared with $28.1 billion in the second quarter of 2025.

FI generated $1.8 billion in net cash from operating activities, whereas its free cash flow was $1.3 billion. Capital expenditure was $507 million. The company repurchased 12.2 million shares for $1 billion in the quarter.

Fiserv's 2025 Guidance

Management lowered its organic revenue growth to 3.5-4% from the preceding quarter’s view of 10%. The adjusted EPS guidance was reduced to $8.5-$8.6 from the preceding quarter’s forecast of $10.15-$10.30. The guided range is lower than the Zacks Consensus Estimate of $10.17.

Fiserv carries a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshots

WM WM reported dismal third-quarter 2025 results.

WM’s quarterly adjusted earnings of $1.98 per share missed the consensus mark by 1.5% but moved up 1% year over year. Total revenues of $6.4 billion missed the consensus mark by a slight margin but grew 14.9% from the year-ago quarter.

TransUnion TRU posted impressive third-quarter 2025 results.

TRU’s quarterly adjusted earnings (adjusting 61 cents from non-recurring items) of $1.10 per share surpassed the consensus mark by 5.8% and increased by the same margin year over year. Total revenues of $1.2 billion outpaced the consensus mark by 3.1% and increased 7.8% from the year-ago quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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