"Adjusted EPS came in at $2.04, well below the $2.72 consensus estimate. Revenue landed at $5.26 billion against an expected $5.52 billion. The miss was broad-based, with Merchant Solutions delivering $2.59 billion in revenue (up 5% year over year) while Financial Solutions contracted 3% to $2.33 billion. That segment weakness is the real concern here. Financial Solutions represents a meaningful portion of the business, and a year-over-year decline signals headwinds in areas where Fiserv has historically driven consistent growth."
"Operating income of $1.67 billion and a 30.8% operating margin show the company is still executing on cost discipline. Free cash flow of $2.88 billion demonstrates solid underlying cash generation. That's the kind of metric that often gets overlooked in earnings misses but matters tremendously to long-term investors. The company is converting revenue into actual cash, which limits downside risk even as near-term guidance tightens."
Fiserv reported Q3 adjusted EPS of $2.04 versus a $2.72 consensus and revenue of $5.26 billion against $5.52 billion expected. Merchant Solutions revenue rose 5% year over year to $2.59 billion while Financial Solutions declined 3% to $2.33 billion, signaling concerning weakness in a core segment. Operating income was $1.67 billion with a 30.8% operating margin, and free cash flow totaled $2.88 billion. Management narrowed full-year 2025 adjusted EPS guidance to $8.50–$8.60 and set organic revenue growth guidance at 3.5%–4%, reflecting caution about demand trends.
Read at 24/7 Wall St.
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