Fiserv, Inc ( FI )  stock tumbled Wednesday after it reported fiscal second-quarter 2025 results.

The company reported quarterly revenue growth of 8% year-over-year to $5.52 billion, beating the analyst consensus estimate of $5.20 billion. Growth was 10% in the Merchant Solutions segment and 7% in the Financial Solutions segment. Adjusted revenue increased 8% year-over-year to $5.20 billion. 

The financial technology and services provider's adjusted EPS of $2.47 beat the analyst consensus estimate of $2.43. The quarterly adjusted EPS increased by 16% over the same period last year. 

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Organic revenue grew 8%, led by 9% growth in Merchant Solutions and 7% in Financial Solutions.

The adjusted operating margin increased by 120 bps Y/Y to 39.6%. Adjusted operating margin decreased 200 basis points Y/Y to 34.6% in the Merchant Solutions segment. The margin increased 280 bps Y/Y to 48.7% in the Financial Solutions segment.

Acquistion

Fiserv ( FI ) expanded its presence in Canada by signing a multi-year Strategic Managed Services agreement with TD Bank Group. The agreement enables TD Merchant Solutions to adopt Fiserv's ( FI ) technology, including the Clover point-of-sale system, for its merchant operations. The deal strengthens Fiserv's ( FI ) Canadian ties and opens new opportunities to scale Clover hardware and software solutions.

Fiserv ( FI ) also signed a purchase agreement to acquire part of TD's Canadian merchant processing business, adding about 3,400 merchant relationships and 30,000 locations to its portfolio. These merchants will migrate to Fiserv's ( FI ) processing platform and use Clover, reinforcing the company's commitment to serving small and mid-sized businesses with innovative technology.

The companies expect the transaction to close later this year, pending customary approvals. Financial details remain undisclosed.

FY25 Outlook

Fiserv ( FI ) expects organic revenue growth of approximately 10% (prior 10%-12%) and adjusted EPS outlook of $10.15-$10.30 (prior $10.10-$10.30), representing growth of 15%-17% Y/Y versus the $10.20 analyst consensus estimate.

Fiserv ( FI ) stock plunged over 19% year-to-date. S&P 500 Index (where Fiserv ( FI ) is a constituent) gained over 7%. Multiple Wall Street firms slashed their price forecasts on the stock in 2025.

Price Action: FI stock is down 21.30% at $130.65 at last check Wednesday.

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