Fiserv Shares Plunge 40% After Q3 Earnings Miss, Leadership Overhaul

Fiserv reported disappointing third-quarter 2025 earnings, with adjusted EPS and revenues falling short of analyst expectations and prompting a significant stock price drop of over 40%. The company lowered its full-year outlook, cutting EPS guidance to $8.50-$8.60 from $10.15-$10.30 and reducing expected revenue growth to 3.5%-4% from 10%, signaling challenges amid fierce competition and slower consumer spending. The company's management underwent a major overhaul, including appointing a new CEO, Mike Lyons, who acknowledged the current performance was below expectations and is driving a strategic reset. Fiserv's core payments and merchant businesses struggled to maintain momentum, with revenue misses across key segments and shrinking operating margins. The broader fintech sector also experienced declines following Fiserv's results, reflecting investor concerns about the sector's outlook. Despite increased net income and revenue reported in some metrics, the overall market reaction and analyst downgrades highlight deep uncertainty about Fiserv's near-term prospects.