.png "Fiserv locked in a strategic alliance with Visa and Mastercard for agentic commerce while battling a class action lawsuit. The move follows a Q3 earnings miss and leadership overhaul.")
Fiserv locked in a strategic alliance with Visa and Mastercard for agentic commerce while battling a class action lawsuit. The move follows a Q3 earnings miss and leadership overhaul.
Summary
- Fiserv inked a pact with Visa and Mastercard to deploy AI purchasing protocols.
- Q3 revenue stands at $4.92 billion, missing analyst estimates of $5.35 billion.
- The company faces a class action lawsuit following a 44% stock crash.
- New leadership withdrew previous financial guidance citing target difficulties.
- Interest expenses rose 29%, weighing on net income margins.
Full Information
Fiserv has entered a strategic alliance with Visa and Mastercard. The pact integrates the Trusted Agent Protocol and Agent Pay Acceptance Framework. The move enables AI agents to autonomously discover and purchase products. This development targets the "Malicious Bot" risk by verifying agent identities, minimizing fraud in the emerging autonomous economy [Payments Dive].
The partnership coincides with a massive market correction. Fiserv posted operating revenue of $4.92 billion in the third quarter of FY25. This figure represents a stagnant 1% growth year on year. It missed analyst estimates of $5.35 billion. Following the results, the company witnessed the Fiserv stock crash October 2025, plummeting 44% in a single session. This represents a steep discount to its valuation earlier in the fiscal year [Investing.com].
Co-founded in 1984 by Leslie Muma and George Dalton, Fiserv provides financial services technology and payment processing solutions. The Milwaukee-headquartered firm operates globally.
On the bottom line, the company reported a GAAP net income of $799 million. Earnings per share (EPS) came in at $2.04, missing the projected $2.64. Interest expenses rose 29% to $422 million, mirroring the rising cost of debt. EBITDA margins narrowed by roughly 200 basis points due to operational inefficiencies. Consequently, organic revenue growth guidance was slashed to 3.5-4%, down from the previously touted 10% [Fiserv Investor Relations].
The financial turbulence follows a sweeping leadership overhaul. Mike Lyons Fiserv CEO took charge in May 2025 to restructure the firm. Paul Todd Fiserv CFO was appointed in October 2025 to steer the financial strategy. Co-Presidents Takis Georgakopoulos and Dhivya Suryadevara will assume their roles effective December 1, 2025. Former CEO Frank Bisignano exited to join the US Administration [Business Wire].
The Merchant Solutions segment contributed significantly to the topline but slowed to 5% growth. This deceleration poses a concentration risk. The company’s current assets stood at a liquidity position of $1.068 billion, including cash and bank equivalents at the end of September 2025.
The guidance withdrawal triggered legal challenges. A Fiserv class action lawsuit December 2025 was filed by Kirby McInerney LLP in the US District Court. The complaint alleges misleading financial statements between July and October 2025 regarding the company's ability to meet its targets [Digital Transactions].
Fiserv competes directly or indirectly with other players in this segment such as Global Payments, Block, Adyen, and Stripe. The sector faces pressure as competition for digital wallet share intensifies.