Fiserv's Growth Potential Under Scrutiny Amidst Downward Guidance Revision
ByAinvest
Wednesday, Sep 24, 2025 8:09 am ET2min read
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In the second quarter of 2025, Fiserv reported earnings of $2.47 EPS, exceeding analyst expectations and reflecting an 8.0% revenue increase compared to the previous year [2]. However, the company faced headwinds in the first half of 2025, particularly in the growth of its cloud-based payment platform, Clover. On April 24, 2025, Fiserv reported a 8% growth in Clover gross payment volume (GPV) for the first quarter of 2025, a significant slowdown from the 2024 GPV rates between 14% and 17% [1]. This deceleration was attributed to lower transaction volumes from merchants converting from Payeezy to the newer Clover platform.
The stock price of Fiserv has been volatile in response to these developments. On April 24, 2025, following the first quarter results, Fiserv's stock price fell by $40.20 per share, or 18.52%, to close at $176.90 per share [1]. Further declines followed subsequent disclosures of continued GPV deceleration and lower organic revenue growth guidance. On July 23, 2025, Fiserv's stock price fell by $22.90 per share, or 13.85%, to close at $143.00 per share [1].
Despite these challenges, Fiserv continues to attract investment. Farther Finance Advisors LLC boosted its position in Fiserv by 41.0% during the second quarter, owning 12,665 shares valued at $2,184,000 at the end of the quarter [2]. Several other hedge funds and institutional investors have also increased their holdings in Fiserv, indicating confidence in the company's long-term prospects.
Analysts have provided mixed ratings and price targets for Fiserv. Deutsche Bank Aktiengesellschaft, JPMorgan Chase & Co., Stephens, Morgan Stanley, and Tigress Financial have all issued ratings and price objectives for the stock, with a consensus rating of "Moderate Buy" and an average target price of $207.36 [2]. Despite these ratings, Fiserv has not been included in a recent list of top analyst recommendations.
Mairs & Power Balanced Fund highlighted Fiserv in its second-quarter 2025 investor letter, expressing confidence in the company's future growth despite the challenges faced in the first half of the year [2]. The fund noted that Fiserv's adjusted revenue grew 8% to $5.2 billion in the second quarter of 2025.
In conclusion, Fiserv, Inc. has faced significant challenges in the first half of 2025, including a class action lawsuit and a slowdown in the growth of its Clover platform. However, the company continues to attract investment interest and has maintained a positive outlook from some analysts and investment funds. As Fiserv navigates these challenges, investors should closely monitor the company's financial performance and any developments in the class action lawsuit.
Mairs & Power Balanced Fund highlighted Fiserv, Inc. (NYSE:FI) in its second-quarter 2025 investor letter. The company's cloud-based payment platform, Clover, had a difficult first six months of 2025 due to revised guidance. Despite this, the fund remains confident in Fiserv's future growth. Fiserv's adjusted revenue grew 8% to $5.2 billion in the second quarter of 2025.
Fiserv, Inc. (NYSE: FI) has been under scrutiny following a series of financial setbacks and a class action lawsuit. Despite these challenges, the company continues to attract significant investment interest, as evidenced by recent developments in its stock holdings and analyst ratings.In the second quarter of 2025, Fiserv reported earnings of $2.47 EPS, exceeding analyst expectations and reflecting an 8.0% revenue increase compared to the previous year [2]. However, the company faced headwinds in the first half of 2025, particularly in the growth of its cloud-based payment platform, Clover. On April 24, 2025, Fiserv reported a 8% growth in Clover gross payment volume (GPV) for the first quarter of 2025, a significant slowdown from the 2024 GPV rates between 14% and 17% [1]. This deceleration was attributed to lower transaction volumes from merchants converting from Payeezy to the newer Clover platform.
The stock price of Fiserv has been volatile in response to these developments. On April 24, 2025, following the first quarter results, Fiserv's stock price fell by $40.20 per share, or 18.52%, to close at $176.90 per share [1]. Further declines followed subsequent disclosures of continued GPV deceleration and lower organic revenue growth guidance. On July 23, 2025, Fiserv's stock price fell by $22.90 per share, or 13.85%, to close at $143.00 per share [1].
Despite these challenges, Fiserv continues to attract investment. Farther Finance Advisors LLC boosted its position in Fiserv by 41.0% during the second quarter, owning 12,665 shares valued at $2,184,000 at the end of the quarter [2]. Several other hedge funds and institutional investors have also increased their holdings in Fiserv, indicating confidence in the company's long-term prospects.
Analysts have provided mixed ratings and price targets for Fiserv. Deutsche Bank Aktiengesellschaft, JPMorgan Chase & Co., Stephens, Morgan Stanley, and Tigress Financial have all issued ratings and price objectives for the stock, with a consensus rating of "Moderate Buy" and an average target price of $207.36 [2]. Despite these ratings, Fiserv has not been included in a recent list of top analyst recommendations.
Mairs & Power Balanced Fund highlighted Fiserv in its second-quarter 2025 investor letter, expressing confidence in the company's future growth despite the challenges faced in the first half of the year [2]. The fund noted that Fiserv's adjusted revenue grew 8% to $5.2 billion in the second quarter of 2025.
In conclusion, Fiserv, Inc. has faced significant challenges in the first half of 2025, including a class action lawsuit and a slowdown in the growth of its Clover platform. However, the company continues to attract investment interest and has maintained a positive outlook from some analysts and investment funds. As Fiserv navigates these challenges, investors should closely monitor the company's financial performance and any developments in the class action lawsuit.
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