WASHINGTON—Fiserv shares plunged to their lowest level in more than five years after the fintech and payments giant sharply missed earnings expectations, slashed its outlook and unveiled leadership changes, rattling markets and credit-union partners alike, the Associated Press reported.
The company—parent of the Clover point-of-sale platform—cut its full-year revenue growth projection to between 3.5% and 4%, a dramatic reversal from the 10% it forecast just a quarter ago. It now expects 2025 earnings of $8.50 to $8.60 per share, down from prior guidance of $10.15 to $10.30, AP said.
Third-quarter earnings came in at $2.04 per share, well short of the $2.64 analysts anticipated, while revenue of $4.9 billion missed estimates by roughly 8%.
Investors reacted swiftly: Fiserv stock fell nearly 41% to $74.14 in early trading—the steepest one-day drop in company history—and has now shed close to 70% of its value since peaking near $238 in March, AP noted.
“Our current performance is not where we want it to be nor where our stakeholders expect it to be,” CEO Mike Lyons said, adding that the company’s growth goals and margin assumptions “need to be reset.” Lyons, who took the helm in May, attributed the shortfall partly to slower-than-expected performance in Argentina and delayed strategic investments.
Lyons framed the pivot as necessary to restore competitiveness and address execution gaps.