Fiserv (NASDAQ:FISV) Shares Gap Up Following Strong Earnings

Key Points

• Fiserv shares jumped 7.7%, opening at $56.53 after the company reported adjusted third-quarter EPS of $1.75, beating the $1.72 consensus estimate; revenue of $4.85 billion was in line with expectations.
• Management raised its Project Elevate cost-savings target to $1 billion from $500 million, plans to repurchase $500 million of stock in the fourth quarter, and reaffirmed its 2026 outlook.
• Underlying results were mixed: revenue declined year over year and organic revenue was flat, while GAAP EPS showed a $11.17 loss versus adjusted EPS of $1.75. Analysts remain cautious, with an overall “Hold” rating and an average price target of $60.38.

Fiserv, Inc. (NASDAQ:FISV - Get Free Report) shares gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $51.93, but opened at $56.53. Fiserv shares last traded at $56.29, with a volume of 2,757,511 shares.

The business services provider reported $1.75 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.72 by $0.03. The business had revenue of $4.85 billion during the quarter, compared to the consensus estimate of $4.85 billion. Fiserv had a return on equity of 15.80% and a net margin of 13.42%. Fiserv's revenue was down 1.3% on a year-over-year basis.

Fiserv News Summary

Here are the key news stories impacting Fiserv this week:

• Positive Sentiment: Fiserv reported third-quarter adjusted EPS of $1.75, exceeding the $1.72 analyst consensus, while revenue of $4.85 billion was in line with expectations. Fiserv Q3 earnings snapshot
• Positive Sentiment: Management raised its Project Elevate cost-savings target to $1 billion from $500 million, potentially supporting margins and future earnings growth. Fiserv stock climbs as Q3 earnings beat
• Positive Sentiment: Fiserv expects to repurchase $500 million of stock in the fourth quarter and affirmed its 2026 organic-revenue and adjusted-EPS outlook, signaling confidence in cash generation and near-term performance. Fiserv Reports Third Quarter 2026 Results
• Positive Sentiment: Investor Michael Burry continues to hold Fiserv and has argued that the stock is undervalued, with potential upside based partly on valuation comparisons in the payments sector. Michael Burry Says Global Payments Buyout Math Means Fiserv Stock Could Hit $100
• Neutral Sentiment: Fiserv was identified as one of several large-cap stocks trading at a substantial discount to sector valuations, which may attract value-oriented investors but also reflects ongoing market concerns. Wall Street’s hidden bargains
• Negative Sentiment: GAAP revenue declined 1% and organic revenue was flat. GAAP EPS was a loss of $11.17, contrasting sharply with adjusted EPS of $1.75 and highlighting the impact of significant nonrecurring or accounting items. Fiserv Reports Third Quarter 2026 Results

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. Stephens assumed coverage on shares of Fiserv in a report on Tuesday, August 11th. They issued an "equal weight" rating and a $57.00 price objective on the stock. UBS Group set a $60.00 target price on shares of Fiserv and gave the stock a "neutral" rating in a report on Friday, August 7th. Barclays set a $50.00 target price on shares of Fiserv and gave the company an "equal weight" rating in a research report on Friday, October 9th. Morgan Stanley set a $59.00 price target on shares of Fiserv in a research note on Friday, August 7th. Finally, Bank of America started coverage on shares of Fiserv in a research report on Thursday, October 15th. They set an "underperform" rating and a $48.00 price target on the stock. Five analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $60.38.

Insider Activity at Fiserv

In related news, Director Lance Fritz acquired 10,000 shares of the business's stock in a transaction dated Friday, August 7th. The stock was bought at an average price of $51.95 per share, with a total value of $519,500.00. Following the acquisition, the director owned 27,207 shares in the company, valued at $1,413,403.65. This represents a 58.12% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.06% of the company's stock.

Institutional Trading of Fiserv

Several institutional investors and hedge funds have recently added to or reduced their stakes in FISV. William Mack & Associates Inc. acquired a new stake in Fiserv in the 3rd quarter worth about $26,000. Keating Financial Advisory Services Inc. acquired a new position in shares of Fiserv during the 2nd quarter worth approximately $30,000. Next Level Wealth Planning LLC bought a new position in shares of Fiserv during the third quarter worth approximately $29,000. Osterweis Capital Management Inc. bought a new position in shares of Fiserv during the second quarter worth approximately $32,000. Finally, Pinnacle Wealth Planning Services Inc. raised its position in shares of Fiserv by 49.3% in the third quarter. Pinnacle Wealth Planning Services Inc. now owns 854 shares of the business services provider's stock valued at $39,000 after buying an additional 282 shares in the last quarter. 90.98% of the stock is owned by institutional investors.

Fiserv Trading Up 7.7%

The company has a debt-to-equity ratio of 0.99, a current ratio of 1.04 and a quick ratio of 1.04. The company has a market capitalization of $29.74 billion, a price-to-earnings ratio of 10.73, a P/E/G ratio of 4.78 and a beta of 0.80. The business's 50-day moving average price is $48.63 and its two-hundred day moving average price is $54.68.

Fiserv Company Profile

Fiserv, Inc is a global financial technology company that provides payment, banking, and commerce solutions to financial institutions, merchants, and other businesses. Its services support electronic payments, card processing, digital banking, account processing, fraud prevention, and related financial workflows.

The company's offerings include merchant acceptance and payments technology, issuer processing, digital banking platforms, core account-processing systems, electronic bill payment, and data-driven financial services.

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