Back to top

Image: Bigstock

Fiserv (FI) Down 0.1% Since Last Earnings Report: Can It Rebound?

Read MoreHide Full Article

It has been about a month since the last earnings report for Fiserv (FI - Free Report) . Shares have lost about 0.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Fiserv due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Fiserv, Inc. before we dive into how investors and analysts have reacted as of late.

Fiserv Beat Q2 Earnings Estimates

Fiserv delivered mixed second-quarter 2025 results on the back of a robust segmental revenue performance and strong margins.

FI’s adjusted earnings per share of $2.47 beat the consensus mark by 2.5% and rose 16% year over year. Adjusted revenues of $5.2 billion missed the consensus estimate by a slight margin but gained 8.6% on a year-over-year basis.

Processing and services revenues of $4.3 billion increased 4% year over year. This falls short of our estimate of $4.5 billion. The product segment’s revenues were $1.2 billion, up 25.3% from the same quarter last year. This exceeds our estimate of $1.1 billion.

Merchant Solutions' revenues reached $2.6 billion, a 9.7% increase from the previous year. However, this is below our estimate of $2.8 billion. Revenues of this segment were driven by Clover growth through new products, new markets, new partners, and new geographies.

Furthermore, continued scaling of the company’s industry-leading distribution, adding new and existing enterprise merchant clients to its Commerce Hub platform, and driving VAS penetration improved the segment’s performance.

The Financial Solutions segment reported revenues of $2.6 billion, a 7.2% rise from the year-ago quarter. This exceeds our estimate of $2.5 billion. Strong growth in Zelle transactions, increasing demand for real-time payments, and rising transaction volumes of STAR and ACCEL debit networks drove revenues in this segment.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

VGM Scores

At this time, Fiserv has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Fiserv has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Fiserv, Inc. (FI) - free report >>

Published in