FISERV INC (FISV): Results of Operations and Financial Condition
FISERV INC (FISV) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 News Release For more information contact: Media Relations: Stacy Davidson Chief Communications and Marketing Officer Fiserv, Inc. stacy.davidson@fiserv.com Investor Relations: Walter Pritchard Senior Vice President, Investor Relations Fiserv, Inc. walter.pritchard@f
How this was made
The 30-second read
Why it matters
The filing provides a fresh guidance range for 2026 (organic revenue and adjusted EPS) plus detailed quarterly GAAP and adjusted metrics, which can directly change valuation assumptions and near-term positioning.
Market read
Guidance reset plus margin compression and organic revenue declines make this a direct earnings-model update rather than a recap.
What to watch
Transformation-related expenses (One Fiserv) and segment margin declines could overstate underlying operating health; traders should separate GAAP vs adjusted trends and watch for commentary on cost actions during the webcast.
Fiserv Reports Second Quarter 2026 Results
Second-quarter GAAP and adjusted revenue each decreased 4%, adjusted EPS decreased 26%, and organic revenue decreased 5%. Both operating segments declined, operating margins were below prior-year levels, and the company updated its 2026 organic revenue and adjusted EPS outlook.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| GAAP revenue, second quarter of 2026GAAP | $5.29 billion | – | decrease of 4% |
| GAAP revenue, first six months of 2026GAAP | $10.32 billion | – | decrease of 3% |
| GAAP earnings per share, second quarter of 2026GAAP | $1.17 | – | decrease of 37% |
| GAAP earnings per share, first six months of 2026GAAP | $2.24 | – | decrease of 33% |
| GAAP operating margin, second quarter of 2026GAAP | 19.2% | – | – |
| GAAP operating margin, first six months of 2026GAAP | 18.7% | – | – |
| GAAP operating margin, Merchant Solutions, second quarter of 2026GAAP | 30.0% | – | – |
| GAAP operating margin, Merchant Solutions, first six months of 2026GAAP | 28.3% | – | – |
| GAAP operating margin, Financial Solutions, second quarter of 2026GAAP | 38.7% | – | – |
| GAAP operating margin, Financial Solutions, first six months of 2026GAAP | 38.4% | – | – |
| Adjusted revenue, second quarter of 2026non-GAAP | $4.96 billion | – | decrease of 4% |
| Adjusted revenue, first six months of 2026non-GAAP | $9.64 billion | – | decrease of 3% |
| Organic revenue, second quarter of 2026non-GAAP | decreased 5% | – | decreased 5% |
| Organic revenue, first six months of 2026non-GAAP | decreased 4% | – | decreased 4% |
| Adjusted earnings per share, second quarter of 2026non-GAAP | $1.84 | – | decrease of 26% |
| Adjusted earnings per share, first six months of 2026non-GAAP | $3.63 | – | decrease of 21% |
| Adjusted operating margin, second quarter of 2026non-GAAP | 31.8% | – | – |
| Adjusted operating margin, first six months of 2026non-GAAP | 30.8% | – | – |
| Adjusted operating margin, Merchant Solutions, second quarter of 2026non-GAAP | 30.0% | – | – |
| Adjusted operating margin, Financial Solutions, second quarter of 2026non-GAAP | 38.7% | – | – |
| Adjusted operating margin, Merchant Solutions, first six months of 2026non-GAAP | 28.3% | – | – |
| Adjusted operating margin, Financial Solutions, first six months of 2026non-GAAP | 38.4% | – | – |
| Net cash provided by operating activities, first six months of 2026GAAP | $2.08 billion | – | – |
| Free cash flow, first six months of 2026non-GAAP | $1.36 billion | – | – |
2026 outlook
- Revenueorganic revenue outlook of (1%) to 0%
- Noteadjusted earnings per share outlook of $7.20 to $7.40
Capital returns
- The company repurchased 1.7 million shares of common stock for $100 million in the second quarter.
- The company repurchased 5.0 million shares of common stock for $300 million in the first six months of 2026.
What drove it
- Organic revenue decreased 5% in the second quarter, including a 1% decline in Merchant Solutions and an 8% decline in Financial Solutions.
- The company said overall volumes, transactions and accounts grew, coupled with recurring revenue growth.
- The second quarter and first six months of 2026 included transformation related expenses associated with the company’s One Fiserv action plan.
- In August, the company completed formation of MoneyPass Group, encompassing its MoneyPass Network, ATM Managed Services and Cash Intelligence businesses, and will maintain a minority ownership interest.
Concerns
- GAAP revenue, adjusted revenue and organic revenue all declined in the second quarter.
- Financial Solutions revenue declined 8% on both a GAAP and organic basis in the second quarter.
- GAAP operating margin was 19.2%, compared to 30.7% in the prior-year quarter.
- Adjusted operating margin was 31.8%, compared to 39.6% in the prior-year quarter.
- GAAP EPS decreased 37% and adjusted EPS decreased 26% in the second quarter.
- First-half operating cash flow and free cash flow were below the prior-year period.
What to watch
- Organic revenue performance against the 2026 outlook of (1%) to 0%.
- Adjusted earnings per share performance against the 2026 outlook of $7.20 to $7.40.
- Merchant Solutions and Financial Solutions revenue trends following second-quarter declines of 1% and 8%, respectively.
- The effect of One Fiserv transformation related expenses on GAAP results and margins.
- Execution following the formation of MoneyPass Group and Fiserv’s minority ownership interest.
Balance sheet and cash flow
- Net cash provided by operating activities was $2.08 billion in the first six months of 2026 compared to $2.31 billion in the first six months of 2025.
- Free cash flow was $1.36 billion in the first six months of 2026 compared to $1.54 billion in the prior year period.
- The company completed a public offering of 1.0 billion Euros of 4-year and 8-year senior notes with a weighted average coupon rate of 4.0%.
- The company retired a portion of its outstanding senior notes due March 2027 and July 2049, with $1.41 billion aggregate principal amount accepted for purchase, for total consideration of $1.23 billion paid to holders.
Analysis
Fiserv reported a weaker second quarter, with GAAP revenue of $5.29 billion and adjusted revenue of $4.96 billion, each down 4% from the prior-year period. Organic revenue decreased 5%. The first-half trend was also negative, as GAAP revenue of $10.32 billion and adjusted revenue of $9.64 billion each decreased 3%, while organic revenue decreased 4%.
Both operating segments contracted. Merchant Solutions GAAP revenue decreased 1% in the second quarter and Financial Solutions GAAP revenue decreased 8%. Organic revenue followed the same second-quarter pattern, declining 1% in Merchant Solutions and 8% in Financial Solutions. Management nevertheless cited growth in overall volumes, transactions and accounts and recurring revenue growth as indicators of underlying business activity.
Profitability declined materially. GAAP operating margin was 19.2% in the quarter versus 30.7% in the prior-year quarter, while adjusted operating margin was 31.8% versus 39.6%. GAAP EPS of $1.17 decreased 37%, and adjusted EPS of $1.84 decreased 26%. The release identifies transformation related expenses from the One Fiserv action plan as included in both second-quarter and first-half 2026 GAAP results.
Cash generation was lower in the first half, with net cash provided by operating activities of $2.08 billion compared with $2.31 billion in the prior-year period and free cash flow of $1.36 billion compared with $1.54 billion. The company repurchased $100 million of stock in the quarter and $300 million in the first six months, while also issuing 1.0 billion Euros of senior notes and retiring $1.41 billion aggregate principal amount of outstanding senior notes for total consideration of $1.23 billion.
For 2026, Fiserv now expects organic revenue of (1%) to 0% and adjusted EPS of $7.20 to $7.40. The outlook places attention on whether volume, transaction, account and recurring-revenue growth can stabilize reported and organic revenue trends, particularly in Financial Solutions, while the company manages One Fiserv transformation costs and executes the MoneyPass Group joint venture structure.
Management, verbatim
Our business continues to be supported by volume growth and strong positions in attractive markets. Our recurring revenue base is durable, client demand for our strategic platforms remains strong, and we are improving execution, enhancing our technology and are committed to long-term shareholder value.
Takis Georgakopoulos, Chief Executive Officer of Fiserv
Growth in overall volumes, transactions and accounts, coupled with recurring revenue growth, highlight the underlying performance of our business in the second quarter. While we are adjusting our 2026 outlook, we are reiterating our expected medium-term growth rates.
Paul Todd, Chief Financial Officer of Fiserv
Not in the filing
stated, not guessed- Period-end date was not provided in the supplied filing text.
- GAAP operating income was not provided in the supplied filing text.
- Adjusted operating income was not provided in the supplied filing text.
- GAAP net income attributable to Fiserv was not provided in the supplied filing text.
- Adjusted net income was not provided in the supplied filing text.
- Gross margin was not provided in the supplied filing text.
- Segment revenue amounts for Merchant Solutions and Financial Solutions were not provided in the supplied filing text.
- Prior-year absolute revenue and EPS amounts were not provided for the reported quarter or first six months.
- Prior-quarter comparisons were not provided.
- Cash balance was not provided in the supplied filing text.
- Total debt balance was not provided in the supplied filing text.
- Dividend information was not provided in the supplied filing text.
- Forward guidance for gross margin, operating expenses and tax rate was not provided.
- Previous-release outlook was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K with Exhibit 99.1 covering Fiserv Q2 2026 results, segment performance, capital actions, and an updated 2026 outlook.
Ticker impact
Fiserv reported Q2 2026 results and cut 2026 organic revenue outlook to (1%) to 0% and adjusted EPS to $7.20 to $7.40.
Near-term downside bias versus prior expectations, with volatility driven by how investors interpret organic revenue decline and margin compression.
The filing discloses both quarterly performance (revenue and EPS declines, operating margin compression) and a specific 2026 guidance reset, which typically drives earnings-model repricing.
Market effects
Payments and financial IT peers may see read-across on demand durability and margin pressure if investors generalize the organic revenue weakness.
Limited direct regional impact; guidance affects US-listed payments software sentiment broadly.
Global payments technology demand and recurring revenue durability are reinforced as key investor focus points, but the guidance reset is company-specific.
Counterpoint
Management highlights durable recurring revenue and strong client demand for strategic platforms, suggesting the outlook reset may reflect near-term execution and transformation costs rather than structural deterioration.
Key entities
- companyFiserv, Inc.
NASDAQ-listed payments and financial services technology provider reporting Q2 2026 results and updating 2026 outlook.
- executiveTakis Georgakopoulos
CEO quoted on durable recurring revenue and execution improvements.
- executivePaul Todd
CFO quoted on adjusting 2026 outlook while reiterating medium-term growth rates.
