Fiserv Stock Prices Plunge Amid Downward Guidance Revisions

Fiserv, a Milwaukee-based fintech company, has underperformed the broader market over the past year, with its stock prices declining 35.1% YTD and 16.8% over the past year. Despite this, the company's Q2 2025 topline increased 8% YoY to $5.5 billion, and adjusted EPS surged 16% YoY to $2.47. Analysts expect Fiserv to deliver an adjusted EPS of $10.22 for FY 2025, up 16.1% YoY, and the stock has a consensus "Strong Buy" rating with 27 "Strong Buys" and four "Moderate Buys" out of 36 analyst recommendations.

Milwaukee-based Fiserv, Inc. (NYSE: FI) reported its Q2 2025 results, showcasing a mixed bag of performance metrics. Despite the company's stock underperforming the broader market over the past year, with a year-to-date decline of 35.1% and a 16.8% drop over the past year, Fiserv's Q2 2025 topline increased by 8% year-over-year (YoY) to $5.5 billion [2]. Additionally, the company's adjusted earnings per share (EPS) surged 16% YoY to $2.47, surpassing analysts' expectations [2].

The company's Q2 2025 results were driven by growth in product sales and processing & service revenues. However, the stock market's reaction to the earnings report was negative, with Fiserv's stock prices plunging 13.9% in a single trading session [2]. This negative reaction was likely due to the company's downward revision of its full-year organic revenue growth guidance from 10% to 12% to 10% [2].

Analysts remain optimistic about Fiserv's long-term prospects. Of the 36 analysts covering the stock, 27 have given it a "Strong Buy" rating, with four "Moderate Buys" and four "Holds" [2]. The consensus price target of $187.18 represents a premium of 40.5% to current price levels, suggesting potential upside for the stock [2]. Additionally, institutional investors and hedge funds collectively own 90.98% of Fiserv's stock, indicating strong support for the company [3].

Fiserv's stock has been a favorite among institutional investors, with Citigroup Inc. increasing its holdings by 72.2% in the first quarter [3]. Other notable institutional investors, such as GAMMA Investing LLC, Kovitz Investment Group Partners LLC, Northern Trust Corp, Pictet Asset Management Holding SA, and Voya Investment Management LLC, have also increased their stakes in Fiserv [3].

Despite the recent stock price decline, Fiserv's Q2 2025 results demonstrate the company's ability to generate revenue growth and improve its EPS. As the company continues to navigate market volatility and management transitions, investors will be closely watching its progress to determine whether the stock's current valuation accurately reflects its growth prospects.

References:
[1] https://uk.finance.yahoo.com/news/fiserv-fi-slid-due-decelerated-130235268.html
[2] https://www.barchart.com/story/news/34041338/fiserv-stock-is-wall-street-bullish-or-bearish
[3] https://www.marketbeat.com/instant-alerts/filing-fiserv-inc-nysefi-shares-bought-by-citigroup-inc-2025-08-08/