Fiserv Faces Growth Concerns as Fund Letter Flags Sector Weakness

Fiserv was the second-largest detractor from Cooke & Bieler’s Mid Cap Value Equity Strategy in the second quarter of 2026, according to the firm’s investor letter. The stock closed at $45.36 on Sept. 29, and the article reported a 32.47% year-to-date pullback.

Cooke & Bieler attributed pressure on the shares to weakness across payments and financial technology, along with slower near-term growth as Fiserv carries out a strategic reset. The letter said growth was muted, with softness in Financial Solutions and slower merchant-processing trends.

Steady performance from Clover, Fiserv’s software and processing product, partly offset those trends, the firm said. It also cited margin compression and investments in platform consolidation, product modernization and pricing changes.

Cooke & Bieler said those actions weighed on near-term results but are intended to support more durable growth. It said management is focused on simplifying operations, improving products and rebuilding the company’s long-term growth plan.

The strategy returned 8.05% in the quarter, compared with 13.4% for the Russell Midcap Value Index. The firm said an underweight in information technology drove nearly all of the shortfall as that sector rallied.