Slower Growth and Margin Pressure Affected Fiserv (FI) in Q3

The London Company, an investment management company, released “The London Company Large Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities continued their rally in the third quarter, driven by the Fed rate cut, solid corporate earnings, and enthusiasm around AI. The economy retained most of its momentum from the second quarter, even though the economic data released during the third quarter was mixed. The portfolio returned 6.3% (6.2%, net) during the quarter compared to an 8.0% gain for the Russell 1000 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, The London Company Large Cap Strategy highlighted stocks such as Fiserv, Inc. (NYSE:FI). Fiserv, Inc. (NYSE:FI) is a leading financial technology company that provides payment and fintech services. The one-month return of Fiserv, Inc. (NYSE:FI) was -49.13%, and its shares lost 69.48% of their value over the last 52 weeks. On November 4, 2025, Fiserv, Inc. (NYSE:FI) stock closed at $64.45 per share, with a market capitalization of $34.665 billion.

The London Company Large Cap Strategy stated the following regarding Fiserv, Inc. (NYSE:FI) in its third quarter 2025 investor letter:

“Fiserv, Inc. (NYSE:FI) – FI underperformed this quarter due to slower growth and margin pressure in its Merchant business, leading to reduced guidance. Organic growth was weighed down by delayed product launches and cautious consumer spending. Despite Clover’s weaker volume growth, FI’s strong revenue from international expansion, new products, and its resilient Financial Solutions segment continues to remain healthy. We are attracted to its durable business model as it maintains a leadership position across its core segments and provides mission-critical services to its customers.”

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Fiserv, Inc. (NYSE:FI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 94 hedge fund portfolios held Fiserv, Inc. (NYSE:FI) at the end of the second quarter, up from 72 in the previous quarter. While we acknowledge the risk and potential of Fiserv, Inc. (NYSE:FI) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Fiserv, Inc. (NYSE:FI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Fiserv, Inc. (NYSE:FI) and shared the list of best beaten down growth stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.