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Fiserv Shares Drop as Revenue Slips and Margins Tighten Despite EPS Beat

Attention now turns to the May 14 Investor Day for evidence the One Fiserv plan can restore growth.

Overview

  • Fiserv reported first‑quarter results Tuesday with adjusted EPS of $1.79 topping the $1.57 estimate, while revenue of $4.675 billion missed forecasts and fell from last year.
  • Organic revenue, which excludes takeovers and currency moves, declined 4% as Merchant Solutions slipped 1% and Financial Solutions dropped 6%.
  • Profitability and cash generation weakened, with the adjusted operating margin down to 29.7% and free cash flow at $259 million versus $371 million a year ago.
  • Shares fell roughly 7% to 9% after the release, and Morgan Stanley cut its price target to $64 as other firms also lowered their targets.
  • Management reaffirmed 2026 adjusted EPS guidance of $8.00–$8.30 and set May 14 for an Investor Day to outline strategy and medium‑term goals.