TLDR
- Activist investor Jana Partners built a stake in Fiserv (FISV) and is pushing for strategic changes to accelerate growth and boost the struggling stock price
- Fiserv stock jumped 5.8% Tuesday on the news after falling 74% over the past 12 months
- Jana wants Fiserv to accelerate growth in its core banking business and exit nonstrategic operations
- The stock’s collapse followed new CEO Mike Lyons cutting 2025 organic revenue growth guidance in October, wiping out $30 billion in market value in one day
- Fiserv confirmed it has engaged with Jana Partners and values shareholder input on its One Fiserv action plan
Fiserv stock rallied Tuesday after reports surfaced that activist investor Jana Partners has taken a position in the battered payments company. Shares closed up 5.8% following The Wall Street Journal’s report that Jana is pushing for operational changes.
The investment firm has been privately urging Fiserv to focus on accelerating growth in its core banking business. Jana also wants management to review and potentially exit nonstrategic business lines that aren’t contributing to the company’s growth trajectory.
Jana believes Fiserv can capitalize on strong spending trends in the banking sector. The activist investor thinks the payments company is well-positioned to benefit from increased technology investments by financial institutions.
The exact size of Jana’s stake remains unclear. It’s also unknown whether the investment firm will seek board representation as part of its campaign.
Fiserv confirmed the engagement in a statement to Barron’s. “During the past several months, we have engaged with many of our shareholders, including Jana Partners,” a company spokesperson said.
The spokesperson added that Fiserv values shareholder perspectives as it executes its One Fiserv action plan. This strategic initiative aims to improve client service and operational efficiency across the organization.
CEO Reset Triggered Stock Collapse
The activist involvement comes after a brutal year for Fiserv shareholders. The stock has plummeted 74% over the past 12 months following a guidance cut that shocked Wall Street.
New CEO Mike Lyons slashed the company’s 2025 organic revenue growth forecast in October. The announcement triggered a massive selloff that erased roughly $30 billion in market value in a single trading session.
Lyons joined Fiserv in May after leaving his role at PNC Financial. He replaced Frank Bisignano, who departed to join the Trump administration.
The CEO’s decision to reset earnings expectations reflected slowing growth in Fiserv’s core merchant-solutions business. Increased competition in the payments industry has also pressured margins and growth rates.
Jana Supports New Leadership
Sources familiar with the matter told the Journal that Jana Partners supports Lyons and his focus on improved execution. The activist firm also backs efforts to refresh the company’s board of directors.
Year-to-date, Fiserv stock is down more than 11% despite Tuesday’s rally. The company’s market capitalization has been cut dramatically as investors reassess growth prospects in the competitive fintech landscape.
Fiserv’s merchant-solutions segment has faced particular pressure as rivals compete aggressively for market share. Banks have also increased their technology spending, creating opportunities that Jana believes Fiserv should capture more effectively.
The activist campaign reflects growing investor frustration with the company’s performance. Jana’s involvement could accelerate strategic changes already underway under Lyons’ leadership.
Jana Partners did not immediately respond to requests for comment about the size of its position or its specific demands.
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