Fiserv Stock Collapses 40% After Forecast Cut, Leadership Shakeup

Fiserv shares experienced a significant decline, falling as much as 44% following the release of weaker-than-expected quarterly results. The company subsequently lowered its full-year organic revenue growth forecast to 3.5%-4%, a substantial reduction from the previous projection of 10%. The slowdown was primarily attributed to the underperformance of Fiserv's Merchant Solutions segment, including the Clover payments system, where growth decelerated to 5%—approximately half the rate reported in the prior quarter. Factors contributing to this deceleration include increased market competition and a softening in consumer spending. In response, Fiserv announced a major restructuring of its senior leadership team. Furthermore, the company is currently facing a federal securities class-action lawsuit. The suit alleges that Fiserv inflated growth metrics related to its Clover platform.