Fiserv Delivers Solid Q1, Strong Margins And Client Wins, But Stock Slides

Fiserv, Inc FI stock tumbled Thursday after it reported fiscal first-quarter 2025 results.

The company reported quarterly revenue growth of 5% year-over-year to $5.13 billion, beating the analyst consensus estimate of $4.84 billion. Growth was 5% in the Merchant Solutions segment and 6% in the Financial Solutions segment.

Read Next: Jim Cramer: Fiserv Is ‘One Of The Greatest Fintechs,’ Calls This Tech Company A Meme Stock

Adjusted revenue increased 5% year-over-year to $4.79 billion. 

The financial technology and services provider’s adjusted EPS of $2.14 beat the analyst consensus estimate of $2.07. 

The adjusted EPS increased by 14% over the same period last year. 

Organic revenue grew 7%, led by 8% growth in the Merchant Solutions segment and 6% in the Financial Solutions segment.

The adjusted operating margin increased by 200 bps Y/Y to 37.8%. 

Adjusted operating margin increased 10 basis points Y/Y to 34.2% in the Merchant Solutions segment and by 340 bps Y/Y to 47.5% in the Financial Solutions segment.

Incoming CEO Mike Lyons said the company is off to a good start in 2025 with a series of large client wins, four strategic acquisitions, and a focus on execution and growth. It reiterated the 2025 outlook with anticipated acceleration in the back half of the year, reflecting the timing of its key strategic initiatives.

FY25 Outlook: Fiserv reiterated organic revenue growth of 10%-12% and adjusted EPS outlook of $10.10-$10.30, representing growth of 15%-17% Y/Y versus the $10.22 analyst consensus.

Price Action: FI stock is down 15.1% at $184.43 at last check Thursday.

Read Next:

• Taiwan Semiconductor’s Arizona Factory Faces $441 Million Loss Amid Supply Chain, Labor Cost Challenges

Photo: Shutterstock