:max_bytes(150000):strip_icc()/GettyImages-2225995430-b8d32a6466184fda92173b7fe689ff0f.jpg "This Fintech Stock Dropped 40% to Lead S&P 500 Decliners Today. Here’s Why.")
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Key Takeaways
- Fintech firm Fiserv’s third-quarter results missed analysts’ expectations, and the company lowered its 2025 guidance significantly.
- The Milwaukee-based company also announced a new CFO and board changes, as well as plans to move its listing to Nasdaq with a new ticker.
Fiserv shares are on pace for their worst day ever Wednesday after the fintech company released a disappointing earnings report and announced key leadership changes.
The Milwaukee-based company, which provides payments processing and digital banking services, reported adjusted earnings of $2.04 per share on revenue that grew 1% year-over-year to $5.26 billion. Analysts surveyed by Visible Alpha had expected $2.63 and $5.69 billion, respectively.
Fiserv also lowered its 2025 organic revenue growth target to a range of 3.5% to 4% and adjusted EPS target to $8.50-$8.60. Last quarter, it projected organic revenue growth of about 10% and adjusted EPS of $10.15 to $10.30.
Shares of Fiserv (FI) sank more than 40% on the news, hitting their lowest level since late 2018. The stock has lost nearly two-thirds of its value since the start of the year.
Why This News Matters to Investors
Fiserv is shaking up its leadership, board and stock listing under new CEO Mike Lyons, who took on the role in May. The third-quarter results and the lowered guidance underscore the challenges that the fintech company faces.
“Along with today’s guidance reset, we have launched One Fiserv, an action plan focused on the pillars that have long distinguished the company, including great client service, value-added technology solutions and leading innovation,” CEO Mike Lyons said. “Our current performance is not where we want it to be nor where our stakeholders expect it to be.”
A key part of that plan is Clover, Fiserv’s point-of-sale payments system, which the company hopes to use to build a leading small business operating platform. Along with its earnings, the company announced that it acquired part of TD Bank’s merchant processing business in Canada earlier this month, and that it signed a deal with the bank group’s Merchant Solutions unit.
The company also named Paul Todd its new CFO, effective Friday. Todd previously served as CFO of Global Payments, and will succeed Robert Hau, “who will serve as a senior advisor through the first quarter of 2026 to support a smooth transition.” Fiserv also also announced that Gordon Nixon, Céline Dufétel, and Gary Shedlin will replace three members of its board on Jan. 1, with Nixon becoming Independent Chairman.
Finally, Fiserv announced it intends to transfer its listing to the Nasdaq from the New York Stock Exchange on Nov. 11, and change its ticker symbol to “FISV” from the current “FI.”
