Fiserv Inc. shares nosedived on Wednesday after the fintech heavyweight trimmed its 2025 guidance and announced sweeping management changes, sending shockwaves across the financial technology sector.
The company now expects 2025 adjusted earnings per share between $8.50 and $8.60, significantly below the earlier forecast of $10.15 to $10.30. Fiserv also projects organic revenue growth of 3.5% to 4% next year as it rolls out a new “One Fiserv” action plan designed to streamline operations and sharpen its focus on client relationships.
For the latest quarter, GAAP revenue rose 1%, bringing year-to-date growth to 5%. GAAP earnings per share surged 49% in the quarter and 29% year-to-date, while organic revenue also climbed 1% in the quarter and 5% over the same period. However, adjusted EPS fell 11% in the quarter, though it remains up 6% year-to-date — a mixed picture that left investors unsettled.
The stock plunged 31% to $87.30 in premarket trading, marking one of its steepest one-day drops in years and extending 2025 losses to almost 40%.
“Not Where We Want to Be”
Chief Executive Officer Mike Lyons acknowledged the results fell short of expectations. “Our current performance is not where we want it to be nor where our stakeholders expect it to be,” he said, adding that the One Fiserv plan would target better execution and efficiency.
Truist analyst Matthew Coad described the magnitude of the guidance cut as one of the largest seen in the fintech sector, saying investors were likely to seek “clearer answers” during the company’s conference call.
Leadership and Board Refresh
Alongside the financial update, Fiserv unveiled a major leadership realignment. Chief Operating Officer Takis Georgakopoulos and former Optum Financial Services CEO Dhivya Suryadevara will serve as co-presidents, while Paul Todd steps in as chief financial officer. Lyons said the three executives have “the skills and experience to lead critical strategic initiatives” as Fiserv looks to rebuild confidence.
The overhaul extends to governance. Fiserv added Gordon Nixon, Céline Dufétel, and Gary Shedlin to its board. Nixon replaces Doyle Simons as independent chairman, while Shedlin will head the audit committee. The board will now comprise 11 members, 10 of them independent, with six appointed within the past two years.
A Rebuilding Phase Begins
Despite modest revenue growth and solid year-to-date gains in GAAP metrics, the sharp drop in adjusted EPS and the lower forward guidance underscore the challenges facing the company. With new leadership in place and a strategy aimed at improving operational discipline, Fiserv is signaling that 2025 will be a year of rebuilding — but investors appear unconvinced for now.
