A month has gone by since the last earnings report for Fiserv (FISV). Shares have lost about 6.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Fiserv due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Fiserv, Inc. before we dive into how investors and analysts have reacted as of late.
Fiserv Misses Q3 Earnings Estimates
Fiserv has reported dismal third-quarter 2025 results, wherein earnings and revenues missed the Zacks Consensus Estimate.
Adjusted earnings per share of $2.04 missed the consensus mark by 22.7% 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.
Fiserv's Quarterly Details
Processing and 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% 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 operating margin was 42.5%, decreasing 510 bps from the year-ago quarter.
Balance Sheet & Cash Flow of FISV
Fiserv exited the third quarter with cash and cash equivalents of $1.1billion compared with $999 million in 2025. The long-term debt was $28.9 billion compared with $28.1 billion in the second quarter of 2025.
FISV generated $1.8 billion in net cash from operating activities, whereas its free cash flow was $1.3billion. 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -34.37% due to these changes.
VGM Scores
Currently, Fiserv has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Fiserv has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Fiserv, Inc. (FISV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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