First thing this morning, we ran an updated analysis in our Live Member Chat Room:
Me: "They trimmed guidance and people are freaking out but, guidance is still over $10 per (now) $140 share (14x) with tremendous growth – and that’s THIS year, not next, where they still project $6.3Bn against their (now) $75Bn valuation (11.9x) so this would be a double down opportunity for us."
🚢 Fiserv (FI) Q2 2025: Earnings Beat, Guidance Cut, and the Real Story
What Happened This Quarter?
Earnings Beat:
Fiserv delivered Q2 adjusted earnings per share of $2.47, above expectations of $2.43. Revenue came in at $5.52 billion, up 8% year-over-year and ahead of estimates123.
Despite the solid quarter, Fiserv’s stock dropped 13–17% pre-market as the company trimmed its full-year organic revenue growth guidance from 10–12% to “about 10%”467. The market also punished softer growth in Merchant Solutions and a year-over-year margin decline in the merchant business48.
Key Issues Behind the Move
1. Guidance Disappointment
Investors zeroed in on the downward revision of revenue growth. The new guidance signals a tougher second half than previously expected, with analysts questioning whether key strategic initiatives can accelerate fast enough748.
Adjusted EPS guidance was maintained at $10.15–$10.30 (15–17% growth), but narrowing the revenue outlook raised immediate concerns about further growth deceleration4910.
2. Clover Growth Slows
Fiserv’s Clover point-of-sale and business management platform, once a fast-growth engine, saw volume growth moderate to 8% versus expectations for double digits. Management cited difficult year-over-year comps, tough “gateway conversion comparisons,” and weaker spending in Canada711.
Want to see more?
Reap the benefits of one of our paid membership plans and get access to articles like these PLUS:
