Fiserv Stock Is the Worst Performer in the S&P 500. Here’s Why.

Fiserv TKTK (Courtesy Fiserv)

Fiserv stock sank Wednesday after the fintech posted results for the fiscal second quarter. While earnings and revenue topped expectations, other parts of the print failed to live up to Wall Street’s expectations.

Shares slumped 17% to $137.11, putting them on pace for the lowest close since Jan. 16, 2024, when the stock ended the session at $137. Fiserv was the worst performer in the benchmark S&P 500 index as of Wednesday morning.

Second-quarter adjusted earnings of $2.47 a share beat the consensus estimate of $2.43 a share among analysts polled by Bloomberg. After stripping out the cost of postage reimbursements, revenue came to $5.2 billion, narrowly topping the $5.19 billion Wall Street had anticipated.

However, merchant solutions organic revenue only grew 9% in the quarter, coming in below the 12% growth analysts were expecting.

Fiserv also softened its outlook for full-year organic revenue growth. The company said it now expects growth of roughly 10%, down from a previous range of 10% to 12%.

The company also raised the lower end of its adjusted earnings guidance range, calling for adjusted earnings in the range of $10.15 to $10.30 a share versus an earlier range of $10.10 to $10.30 a share.

Fiserv stock headed for its largest same-day percent decrease since the company went public in 1986. Shares traded as low as $128.22 on Wednesday.

Separately, the company announced it had entered into a multiyear agreement with TD Bank Group . Under the terms of the deal, TD’s Merchant Solutions arm will adopt Fiserv technology including its Clover point-of-sale system. Financial details weren’t disclosed.

Fiserv also said it had entered into a purchase agreement to acquire part of TD’s merchant processing business in Canada.

News of the TD deal wasn’t enough to boost the stock. Shares were down 20% month-to-date on Wednesday, heading for their worst month since a 29.5% drop in October 2008.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com