Fiserv’s third quarter results triggered a negative market response, as the company’s revenue came in flat year over year and missed Wall Street expectations. Management highlighted that underperformance was largely driven by a combination of overreliance on short-term revenue initiatives, deferred investments, and slower-than-expected growth in key international markets. CEO Michael Lyons described the quarter as “disappointing” and acknowledged that both competitive gaps and client service issues became clear after a comprehensive review of the company’s operations. Lyons emphasized that many of the current challenges were self-inflicted and outlined steps being taken to address operational shortcomings.

Is now the time to buy FI? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Fiserv’s Q3 Earnings Call

• Tien-Tsin Huang (JPMorgan) asked about the timeline for reversing over-earning from short-term initiatives and regaining double-digit EPS growth. CEO Michael Lyons said the company has reset to a mid-single-digit growth baseline, emphasizing that returning to double-digit EPS growth is a long-term objective enabled by operational discipline and capital allocation.
• Darrin Peller (Wolfe Research) questioned the abrupt slowdown in Financial Solutions growth and whether all necessary price and investment adjustments are now complete. Lyons responded that the review is substantially finished, with remaining businesses set for low to mid-single-digit growth after recent leadership and operational changes.
• Jason Kupferberg (Wells Fargo) sought clarity on Clover’s growth outlook and competitive standing. Lyons highlighted Clover’s strength and investment focus, while CFO Paul Todd projected revenue growth to improve from Q4’s trough, with further acceleration expected after 2026.
• David Koning (Baird) asked about margin troughs and the pace of recovery. Todd explained that margins would bottom out in early next year due to peak investments, with gradual improvement as operational efficiencies and new products scale.
• Harshita Rawat (Bernstein) pressed management on why Financial Solutions guidance changed so quickly within the quarter. Lyons pointed to uncovering overly optimistic assumptions after a deeper review, and Todd said future results should reflect more stable, recurring growth patterns.

Catalysts in Upcoming Quarters

Our analysts will be monitoring (1) the effectiveness of the new leadership team and its ability to execute on operational and cultural transformation; (2) initial returns from Project Elevate and the integration of AI into core processes; and (3) the ramp-up of new products and platforms such as Clover and Finxact. Progress on divesting non-core businesses and the stabilization of recurring revenue streams will also be critical markers for Fiserv’s trajectory.

Fiserv currently trades at $63.86, down from $126.24 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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