Why Is Fiserv (FISV) Down 5.8% Since Last Earnings Report?

A month has gone by since the last earnings report for Fiserv (FISV). Shares have lost about 5.8% in that time frame, underperforming the S&P 500.

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 Beats Q4 Earnings Estimates

Fiserv has reported mixed fourth-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, while revenues missed the same.

FISV’s adjusted earnings per share of $1.99 surpassed the consensus mark by 4.7% but declined 20.7% year over year. Adjusted revenues of $4.9 billion missed the consensus estimate by 1% and dipped 6.7% on a year-over-year basis.

Fiserv's Quarterly Details

FISV reported $4.3 billion in processing and services revenues. The metric moved down marginally on a year-over-year basis while meeting the Zacks Consensus Estimate. Revenues in the product segment were $1 billion, rising 3.6% from the year-ago quarter and beating the consensus estimate of $999.6 million.

FISV recorded $2.5 billion in adjusted revenues from merchant solutions, up 1.5% year over year. However, the metric missed the consensus mark of $2.6 billion. The company registered $816 million in operating income, down 1.6% year over year and missing the consensus estimate of $833.9 million.

From the financial solutions segment, Fiserv logged adjusted revenues of $2.4 billion, marking a 1.6% decrease from the year-ago quarter and surpassing the Zacks Consensus Estimate of $2.4 billion. The company recorded $997 million in operating income, declining 19.7% year over year. The metric beat the Zacks Consensus Estimate of $992.3 million.

Balance Sheet & Cash Flow of FISV

Fiserv exited the fourth quarter with cash and cash equivalents of $798 million compared with $1.1 billion in the third quarter of 2025. The long-term debt was $27.8 billion compared with $28.9 billion in the preceding quarter.

FISV generated $1.9 billion in net cash from operating activities, whereas its free cash flow was $1.6 billion. Capital expenditure was $442 million.

Fiserv's 2026 Guidance

For 2026, management anticipates organic revenue growth of 1-3%. The guidance for EPS is $8-$8.3.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted -9.75% due to these changes.

VGM Scores

At this time, Fiserv has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock has a score of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. 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.

Performance of an Industry Player

Fiserv belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Paypal (PYPL), has gained 12.6% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Paypal reported revenues of $8.68 billion in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $1.23 for the same period compares with $1.19 a year ago.

For the current quarter, Paypal is expected to post earnings of $1.29 per share, indicating a change of -3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.6% over the last 30 days.

Paypal has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.

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This article originally published on Zacks Investment Research (zacks.com).

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