Fiserv (FISV, Financial) reported first-quarter revenue that fell short of Wall Street expectations, leading to a roughly 7% drop in its stock price in pre-market trading. The company's payment processing segment experienced a slowdown in demand, attributed to U.S. consumers reducing discretionary spending amid concerns over trade policies potentially slowing the economy.
Fiserv, based in Wisconsin, earns fees by processing payments and transactions for merchants, banks, and credit unions. In the first quarter, revenue from its merchant solutions processing business fell 9% to $276 million, although the total revenue for the merchant solutions segment rose by 5.3% to $2.37 billion.
According to data compiled by LSEG, Fiserv's adjusted revenue was $4.79 billion, below the analyst average estimate of $4.84 billion. However, the company's adjusted earnings per share were $2.14, surpassing the expected $2.08.
