Fiserv's Q2 Earnings Miss the Mark, Stock Tanks as Worst S&P 500 Performer.

Fiserv stock plummeted after its Q2 earnings report, despite beating expectations for earnings and revenue. Other parts of the report failed to impress Wall Street, making it the worst performer in the S&P 500. The fintech company's results disappointed investors, leading to a significant decline in its stock price.

Fiserv, Inc. (NYSE: FI) reported its second-quarter 2025 earnings on July 2, 2025, with the stock price dropping sharply despite the company beating expectations for earnings and revenue. The fintech giant's stock performance was the worst among S&P 500 constituents, highlighting the mixed reception of its financial report.

Fiserv's GAAP revenue grew by 8% in the second quarter, reaching $5.52 billion, and 7% year-to-date, reaching $10.65 billion. The company's GAAP earnings per share (EPS) increased by 22% to $1.86 in the second quarter and $3.36 year-to-date. However, the adjusted EPS growth of 16% and 15% year-to-date did not impress investors [1].

The company's organic revenue growth of 8% in both the quarter and year-to-date, driven by 9% growth in the Merchant Solutions segment and 7% growth in the Financial Solutions segment, was not enough to offset concerns about the company's strategic initiatives and operational efficiency [1].

Fiserv also announced its plans to launch a new digital asset platform, including a stablecoin (FIUSD), which was not well-received by the market. The company's acquisition of AIB Merchant Services, a payments solution provider, was also seen as a potential drag on earnings [1].

The stock price decline was further exacerbated by the company's inability to meet Wall Street's expectations for free cash flow and adjusted operating margin growth. Fiserv's free cash flow was $1.54 billion year-to-date, a 3% increase from the prior year, while the adjusted operating margin increased by 120 basis points to 39.6% in the second quarter and 150 basis points to 38.7% year-to-date [1].

Fiserv's stock price plummeted by more than 15% on the day of the earnings report, making it the worst performer in the S&P 500. The company's stock price decline was a result of the market's disappointment with the company's strategic initiatives, operational efficiency, and the lack of clear growth drivers.

References:
[1] https://investors.fiserv.com/newsroom/detail/2856/fiserv-reports-second-quarter-2025-results