Fiserv's Stock Takes a Big Hit After Lowering Expectations
Major fintech player Fiserv saw its stock plummet after announcing a significant reduction in its earnings forecast. The company's CEO, Mike Lyons, acknowledged that their current performance is below expectations, sending shockwaves through the market.
Revised Earnings and Revenue Forecasts
- Previous Earnings Forecast: $10.15 to $10.30 per share
- Revised Earnings Forecast: $8.50 to $8.60 per share
- Previous Revenue Growth Forecast: 10%
- Revised Revenue Growth Forecast: 3.5% to 4%
Factors Impacting Performance
During a recent earnings call, Lyons highlighted that Argentina's economic troubles have significantly impacted their growth. Last year, Argentina was a key contributor, but the situation has changed. Fiserv had hoped other businesses would offset this loss, but that did not materialize.
Disappointing Earnings Report
- Reported Earnings: $2.04 per share (below analysts' expectations)
- Revenue Increase: Approximately 1% to $4.92 billion (missed forecast of $5.36 billion)
- Net Income Growth: Increased to $792 million from $564 million the previous year
Leadership Changes and Strategic Moves
To tackle these challenges, Fiserv announced several leadership changes:
- New Co-Presidents: Takis Georgakopoulos and Dhivya Suryadevara, starting in December
- New Finance Chief: Paul Todd
- New Board Members: Gordon Nixon, Céline Dufétel, and Gary Shedlin joining in early 2026
- Gordon Nixon to serve as independent chairman
- Gary Shedlin to lead the audit committee
Additionally, Fiserv plans to move its stock listing from the NYSE to the Nasdaq, trading under the ticker symbol "FISV." This move is part of their strategy to drive sustainable growth and reach their full potential.
