Fiserv Q3 Earnings Miss Estimates on Weak Margins, Revenues Fall Y/Y

Fiserv, Inc. FI delivered dismal third-quarter 2025 results as the Financial Solutions segment’s revenues declined and margins contracted.

The earnings and revenues miss disappointed the market as the company’s shares declined 51.3% since the release of results on Oct. 29.

Fiserv, Inc. Price, Consensus and EPS Surprise

 

Fiserv, Inc. price-consensus-eps-surprise-chart | Fiserv, Inc. Quote

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.

Processing and services revenues of $4.3 billion moved up marginally year over year. This missed our estimate of $4.7 billion. The product segment’s revenues were $990 million, rising 1.2% from the same quarter last year. This missed our projection of $1.2 billion.

Merchant Solutions' revenues were $2.6 billion, 4.7% growth from the previous year. However, this is below our estimate of $3 billion. Revenues in this segment were primarily driven by increasing gross payment volume in the Clover platform. Continued investments in Commerce Hub to build the omnichannel global capabilities contributed to this segment’s growth as well.

The Financial Solutions segment reported revenues of $2.3 billion, a 3.3% fall from the year-ago quarter. This lagged our estimate of $2.6 billion. Lower periodic license activity affected this segment’s revenues.

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.

Currently, Fiserv carries a Zacks Rank #5 (Strong Sell).

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

Recent Earnings Snapshots

Automatic Data Processing, Inc. ADP reported impressive first-quarter fiscal 2026 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

ADP’s earnings per share of $2.49 beat the consensus estimate by 2% and increased 6.9% from the year-ago quarter.

The top line amounted to $5.2 billion, which surpassed the consensus estimate by a slight margin and grew 7.2% from the year-ago quarter.

Equifax Inc. EFX posted impressive third-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

EFX’s adjusted earnings were $2.04 per share, outpacing the Zacks Consensus Estimate by 5.7% and increasing 10.3% from the year-ago quarter.

The company registered revenues of $1.5 billion, beating the consensus estimate by 1.5% and increasing 6.9% on a year-over-year basis.

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

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