Fiserv, Inc. (FISV) Earnings & Analysis

Latest quarter

Fiserv reported adjusted EPS, as the consensus counts it, of $1.84 for the quarter to June 30, 2026, versus the consensus of $1.89, a miss of −2.65%. The company reported revenue, as the consensus counts it, of $5.0 billion, versus consensus revenue of $5.1 billion, a miss of −1.74%.

The filing shows Q2 FY2026 revenue of $5.3 billion, compared with $5.5 billion in Q2 FY2025, a change of −4.06%. Fiserv attributed the revenue decline primarily to lower data and analytics sales and license revenue; the filing said Merchant segment revenue declined and Financial segment revenue also declined from a year earlier. The filing said Merchant revenue was partly supported by Small Business volume growth, including Clover.

The filing shows diluted EPS of $1.17, compared with $1.86 a year earlier, while gross margin was 19.1% and operating margin was 19.2%. Fiserv said lower high-margin license and data-and-analytics revenue, along with higher personnel, transformation and technology-infrastructure costs, affected operating income and margin. The company reported free cash flow of $985.0 million, compared with $1.2 billion a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Takis Georgakopoulos said Fiserv’s second-quarter results were in line with its guidance and that underlying transaction, volume and account trends supported recurring revenue. He said weaker macroeconomic conditions in Argentina, slower client-driven implementation timelines, slower execution of some growth initiatives and added technology, infrastructure and cybersecurity investment informed the company’s updated outlook.

Paul Todd said the company expects the revenue associated with newly contracted business and enterprise client ramps to be recognized later rather than lost. Todd also said the changing environment for future hardware sales reduced the company’s expectations, partly because of elevated hardware sales in earlier periods. When analysts asked about hardware, Todd said it accounted for about half of the headwind affecting Clover revenue expectations, with anticipation revenue accounting for the other half.

On pricing, Todd said the company’s yield environment was stable for Merchant and Clover. Georgakopoulos said Fiserv was monitoring pricing changes announced by competitors while concentrating on customer service and adding value through product capabilities.

Georgakopoulos said the company was conducting a product-by-product portfolio review focused on whether offerings meet client needs and can be delivered in an integrated, simple-to-use way. He said Fiserv would consider alternatives for products where it cannot meet those standards, but said he was not ready to provide specifics on the potential scale of resulting actions.

Georgakopoulos said Fiserv was investing in technology infrastructure, particularly in Financial Solutions, to improve platform stability, resiliency and cybersecurity. Todd said lower revenue carried a margin effect because much of the expense base is fixed, while the company’s incremental technology infrastructure spending also affected expenses. Todd said Project Elevate had identified at least $500.0 million of savings opportunities and that Fiserv had completed the identification phase.

Guidance

Fiserv now expects FY2026 organic revenue growth of −1.00% to flat and adjusted revenue to decline between −1.50% and −0.50%. The company now expects FY2026 adjusted EPS of $7.20 to $7.40, replacing its prior EPS outlook of $8.00 to $8.30. Fiserv also replaced its prior FY2026 adjusted operating-margin outlook of approximately 34.0% with a reduced full-year adjusted operating-margin range.