Fiserv Stock Jumps 12% as It Doubles Savings Target Despite a Q3 Loss

Fiserv shares rose about 12.5% on Tuesday, November 3, after the payments and fintech company reported third-quarter results that included a large accounting charge but also a bigger cost-cutting plan and new share buybacks.

A GAAP loss, driven by a write-down

Fiserv reported a GAAP loss of $11.17 per share, compared with earnings of $1.46 a share a year earlier. The loss was driven by a $6.45 billion non-cash goodwill impairment, an accounting write-down that reduces reported profit but does not use cash.

Excluding that and other items, adjusted earnings were $1.75 per share, down from $2.04 a year earlier.

Segments

• Merchant Solutions: revenue of $2.52 billion, down 3%; organic revenue down 2%.
• Financial Solutions: revenue of $2.33 billion, flat; organic revenue up 2%.

Why the stock rose

Investors focused on what comes next:

• Fiserv raised the savings target for its Project Elevate program to $1 billion, from $500 million.
• It plans to buy back $500 million of its shares in the fourth quarter.
• It affirmed its 2026 outlook of organic revenue growth of –1% to 0% and adjusted EPS of $7.20 to $7.40.

“Our team is executing with urgency, and we are seeing meaningful progress,” CEO Takis Georgakopoulos said.

GAAP vs. adjusted numbers

The gap between a $11.17 loss and $1.75 of adjusted profit is a reminder to check what a company leaves out of its “adjusted” figures. Our guide on how to read an earnings report explains how to compare the two, and what market cap means for a company’s size.

This article is for information only and is not investment advice.