Fiserv Reshuffles Leadership Board As Earnings Drop By 43%

Payments technology firm Fiserv recorded its biggest one-day decline on Wednesday when its shares fell by 43%. The company reported a weaker quarterly result, lowering its growth output for the second quarter in a row. Some analysts have criticized the firm’s low performance and recent downgrade, with many of them describing the performance as significantly below the expected results.

The poor performance indicates ongoing challenges across the company’s payments and merchant businesses. Fiserv has endured a stagnant period in its growth as its business continues to experience low consumer spending and competitive pressures.

The firm has also altered some leadership positions as it hopes to bounce back to its best days. As part of a wider plan to reset its strategy under the new management, the firm appointed a new chief financial officer and two co-presidents.

Fiserv Changes Leadership Positions To Reset Its Strategy

Paul Todd will take his new role as Chief Financial Officer, while Dhivya Suryadevara and Takis Georgakopoulos will begin their roles as co-presidents from December 2025. However, the outgoing Chief Financial Officer, Bob Hau, will maintain his other role as a senior adviser until early 2026 after a complete transition.

Fiserv is reviewing its operational strategies as it continues to face the harsh realities of the market. In line with the modest third-quarter growth, the firm has decided to cut its 2025 guidance. It wants to refocus on client relationships and streamline its operations to improve user experience.

The payment technology giant recently reported its adjusted earnings as $2.04 per share for the third quarter of the year. This is below the expected earnings of $2.64 billion per share.

Fiserv noted that the GAAP revenue surged 1% to $5.26 billion in Q3. It recorded a decline in Financial Solutions, which offset the positive results it gained from Merchant Solutions. But revenue surged 5% to $15.91 billion in the first nine months of the year.

Fiserv recorded a 49% increase in GAAP earnings, gaining from last year’s impairment charge. Its operating margin fell from 30.7% last year to 27.3%.

Fiserv Expects An Increase In Organic Revenue

Fiserv has continued to support its expansion plans. The company plans to acquire the StoneCastle Cash Management platform. The acquisition is expected to be complete by early next year, pending regulatory approval. Also, it recently completed the acquisition of CardFree and Smith Consulting Group.

Fiserv is also expanding its operations in other regions, after buying part of the merchant processing business of Canada-based TD Bank. Fiserv is still pursuing its growth potential and expects to increase its organic revenue from 3.5% last year to 4% this year, despite the unfavorable market conditions.