News about Fiserv

Fiserv (FISV) shares rose 12.46% on Tuesday after an encouraging third-quarter report. Non-GAAP revenue fell 1% year over year to $4.85 billion, roughly in line with consensus, while adjusted net income dropped 15% to $936 million, or $1.75 per share, slightly better than the $1.72 estimate. Fiserv said revenue erosion in its banking segment was improving, with fewer client migrations and "major client wins," and it doubled its Project Elevate savings target to $1 billion from $500 million. The company also plans to resume share buybacks, targeting $500 million in the fourth quarter alone, and kept its 2026 organic revenue guidance of a 1% decline to break-even and adjusted EPS guidance of $7.20 to $7.40.

Morningstar's Sean Dunlop named LPL Financial (LPLA), Fiserv (FISV) and Nu Holdings (NU) as his top sector picks, noting financial stocks have lagged in 2026 on AI disruption fears and rising rates, after the Federal Reserve raised rates in September for the first time since 2023. The Financial Select Sector SPDR Fund (XLF) is up just 0.76% year to date, versus nearly 14% for the SPDR S&P 500 ETF Trust (SPY). Dunlop believes the market has overreacted on the three names, and Morningstar's price targets imply about 68% upside for LPLA ($543), about 130% for FISV ($106) and about 11% for NU ($16.60). He flagged LPL's need to address AI risk to its client sweep cash, Fiserv's moat and 'reset year' status, and Nubank's expansion into other Latin American markets and the U.S. Stocktwits retail sentiment was neutral on LPLA and FISV and bearish on NU.