Why Fiserv (FISV) Stock Is Falling After PayPal's Earnings Shock

Fiserv Inc (NYSE:FISV) shares are trading lower Tuesday after a sharp sell-off in PayPal Holdings. PayPal's latest earnings disappointed investors and raised fresh worries about the health of consumers and retail merchants, pulling Fiserv's stock down in sympathy. Here’s what investors need to know.

• Fiserv shares are approaching critical lows. What’s behind FISV weakness?

PayPal Earnings Miss, Consumer Weakness Hit Payments Sector

PayPal posted 4% year-over-year revenue growth to $8.68 billion, missing Wall Street's $8.80 billion estimate, with adjusted EPS of $1.23 versus the $1.28 consensus.

The company also announced a CEO transition and walked back its longer-term financial targets, while its finance chief highlighted mounting pressure on retail merchants and on lower- and middle-income consumers.

That combination of a revenue miss, guidance reset and demand caution triggered broad selling across payment and fintech names tied to transaction volumes.

Why Fiserv And PayPal Are Closely Linked Payments Plays

Investors are drawing a straight line from PayPal's commentary to Fiserv's outlook because both businesses are heavily exposed to merchant and consumer spending trends.

Fiserv's Clover and merchant acquiring franchises earn fees on card and digital payment volumes at small and mid-sized businesses, similar in economic sensitivity to PayPal's merchant services and Venmo-driven activity.

If consumers cut back on spending and merchants struggle, it could hurt PayPal's growth. Investors may worry that Fiserv could also see slower payment volumes, fewer new merchants joining the platform and more cautious use of its software and services.

Why Fiserv’s Current Position Signals Caution

Fiserv is currently trading 12% below its 20-day simple moving average (SMA) and 11.2% below its 50-day SMA, indicating a bearish trend in the short term. Over the past 12 months, shares have decreased by 8.79%, and the stock is positioned closer to its 52-week lows than its highs.

The RSI is at 36.16, which is considered neutral territory, while the MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum, reflecting the stock’s current struggles in the market.

• Key Resistance: $68.00

Fiserv’s Role In Banking Operations

Fiserv is a leading provider of core processing and complementary services, such as electronic funds transfer, payment processing and loan processing, for US banks and credit unions with a focus on small and midsize banks.

Following its 2019 merger with First Data, Fiserv also provides payment processing services to merchants. About 10% of the company’s revenue is generated internationally.

The company’s significance lies in its role in the financial technology sector, where it helps facilitate transactions and streamline banking operations. As financial institutions increasingly rely on technology, Fiserv’s services are crucial for maintaining competitive advantages in a rapidly evolving market.

Is This Dip Setting Up For A Comeback?

Investors are looking ahead to the next earnings report on Feb. 10.

• EPS Estimate: $1.90 (Down from $2.51 YoY)
• Revenue Estimate: $4.95 billion (Down from $5.25 billion YoY)
• Valuation: P/E of 9.7x (Indicates value opportunity)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $88.33. Recent analyst moves include:

• Cantor Fitzgerald: Initiated with Neutral (Target $70.00) (Jan. 27)
• Tigress Financial: Buy (Lowers Target to $95.00) (Dec. 31, 2025)
• Mizuho: Outperform (Lowers Target to $100.00) (Dec. 22, 2025)

Valuation Insight: While the stock trades at a value P/E multiple, the strong consensus and 24% expected earnings decline suggest analysts view this growth as justification for the 51% upside to analyst targets.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Fiserv, highlighting its strengths and weaknesses compared to the broader market:

• Value Rank: 39.97 — The stock is trading at a discount relative to its peers.

The Verdict: Fiserv’s Benzinga Edge signal reveals a classic ‘value opportunity’ setup. While the Value rank indicates the stock is trading at a discount, the overall market sentiment suggests caution as it navigates through challenging conditions.

FISV Stock Hits New 52-Week Low Tuesday

FISV Price Action: Fiserv shares were down 7.61% at $58.15 at the time of publication on Tuesday, according to Benzinga Pro data.

Image: Shutterstock