Fiserv's Stock Takes a Big Hit After Lowering Expectations

Fiserv, a major player in the fintech world, saw its stock drop sharply after it decided to lower its earnings forecast. The company's CEO, Mike Lyons, admitted that their current performance is not up to par. This news sent shockwaves through the market, with the stock price falling by a huge margin. The company now expects to earn between $8. 50 and $8. 60 per share for the year, which is a significant drop from their earlier prediction of $10. 15 to $10. 30. Additionally, their revenue growth forecast was cut down to 3. 5% to 4%, way below the previous estimate of 10%. During a recent earnings call, Lyons pointed out that Argentina's economic troubles have slowed down their growth. Last year, Argentina was a big contributor to their growth, but things have changed. The company had hoped that their other businesses would pick up the slack, but that didn't happen. Fiserv's actual earnings for the period were also disappointing. They reported $2. 04 per share, which was less than what analysts had expected. Their revenue increased by only about 1% to $4. 92 billion, missing the forecast of $5. 36 billion. However, their net income did grow, reaching $792 million compared to $564 million the previous year. To address these challenges, Fiserv announced some changes in their leadership team. Starting in December, Takis Georgakopoulos and Dhivya Suryadevara will serve as co-presidents. Paul Todd was also promoted to finance chief. The company believes that these new leaders will help them achieve long-term success. Additionally, Fiserv announced that Gordon Nixon, Céline Dufétel, and Gary Shedlin will join their board in early 2026. Nixon will take on the role of independent chairman, and Shedlin will lead the audit committee. Fiserv also revealed plans to move their stock listing from the NYSE to the Nasdaq, where they will trade under the ticker symbol "FISV. " This move is part of their action plan to drive sustainable growth and reach their full potential.