third quarter of 2026
Filed Nov 3, 2026GAAP revenue decreased 1% and organic revenue was flat in the quarter; GAAP EPS of $(11.17) and adjusted EPS of $1.75 in the quarter; Company affirms 2026 organic revenue and adjusted EPS outlook.
Third-quarter organic revenue was flat, with Financial Solutions returning to 2% organic growth, but Merchant Solutions organic revenue declined 2%, adjusted operating margin fell to 31.2%, and GAAP results included a $6.45 billion non-cash goodwill impairment charge.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $5.20B | – | (1)% |
| Processing and services revenue, three months ended September 30, 2026GAAP | $4.23B | – | – |
| Product revenue, three months ended September 30, 2026GAAP | $965M | – | – |
| Adjusted revenue, three months ended September 30, 2026non-GAAP | $4.85B | – | (1)% |
| Organic revenue, three months ended September 30, 2026non-GAAP | $4.85B | – | —% |
| Operating income (loss), three months ended September 30, 2026GAAP | −$5.49B | – | – |
| Operating margin, three months ended September 30, 2026GAAP | (105.7)% | – | – |
| Adjusted operating income, three months ended September 30, 2026non-GAAP | $1.51B | – | – |
| Adjusted operating margin, three months ended September 30, 2026non-GAAP | 31.2% | – | – |
| Net income (loss) attributable to Fiserv, three months ended September 30, 2026GAAP | −$5.94B | – | – |
| GAAP earnings (loss) per share attributable to Fiserv - diluted, three months ended September 30, 2026GAAP | $(11.17) | – | – |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $936M | – | – |
| Adjusted earnings per share, three months ended September 30, 2026non-GAAP | $1.75 | – | – |
| Goodwill impairment, three months ended September 30, 2026GAAP | $6.45B | – | – |
| Total revenue, nine months ended September 30, 2026GAAP | $15.52B | – | (2)% |
| Adjusted revenue, nine months ended September 30, 2026non-GAAP | $14.49B | – | (3)% |
| Organic revenue, nine months ended September 30, 2026non-GAAP | $14.43B | – | (3)% |
| Operating income (loss), nine months ended September 30, 2026GAAP | −$3.56B | – | – |
| Operating margin, nine months ended September 30, 2026GAAP | (23.0)% | – | – |
| Adjusted operating income, nine months ended September 30, 2026non-GAAP | $4.48B | – | – |
| Adjusted operating margin, nine months ended September 30, 2026non-GAAP | 30.9% | – | – |
| Net income (loss) attributable to Fiserv, nine months ended September 30, 2026GAAP | −$4.74B | – | – |
| GAAP earnings (loss) per share attributable to Fiserv - diluted, nine months ended September 30, 2026GAAP | $(8.90) | – | – |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $2.88B | – | – |
| Adjusted earnings per share, nine months ended September 30, 2026non-GAAP | $5.38 | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $3.09B | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $2.04B | – | – |
| Capital expenditures, including capitalized software and other intangibles, nine months ended September 30, 2026GAAP | −$1.44B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Merchant Solutions, three months ended September 30, 2026Organic revenue declined 2%; GAAP and adjusted operating margin was 28.7% compared to 37.2% in the prior year period. | $2.52B | – | (3)% |
| Financial Solutions, three months ended September 30, 2026Organic revenue grew 2%; GAAP and adjusted operating margin was 38.1% compared to 42.5% in the prior year period. | $2.33B | – | flat |
| Corporate and Other, three months ended September 30, 2026Revenue consisted of postage reimbursements of $344 million; operating loss was $(7,105) million, including the goodwill impairment charge. | $344M | – | – |
| Merchant Solutions, nine months ended September 30, 2026Organic revenue declined 2%; GAAP and adjusted operating margin was 28.4% compared to 35.3% in the prior year period. | $7.50B | – | (1)% |
| Financial Solutions, nine months ended September 30, 2026Organic revenue declined 4%; GAAP and adjusted operating margin was 38.3% compared to 46.3% in the prior year period. | $6.99B | – | (4)% |
| Corporate and Other, nine months ended September 30, 2026Revenue consisted of postage reimbursements of $1,025 million; operating loss was $(8,368) million. | $1.02B | – | – |
2026 outlook
- RevenueOrganic revenue: (1%) to 0%
- NoteGAAP Revenue: (1.5%) - (0.5%)
- NoteAdjusted revenue: (1.5%) - (0.5%)
- NotePostage reimbursements: 0%
- NoteCurrency impact: 0%
- NoteAcquisition adjustments: (0.5%)
- NoteDisposition adjustments: 1%
- NoteAdjusted earnings per share: $7.20 to $7.40
- NoteProjected savings under Project Elevate: $1 billion
- NoteExpected common-stock repurchases during the fourth quarter of 2026: $500 million
Capital returns
- The company expects to repurchase $500 million of its common stock during the fourth quarter of 2026 under its existing share repurchase authorization.
- Purchases of treasury stock, including employee shares withheld for tax obligations were $(395) million in the first nine months of 2026, compared to $(5,695) million in the first nine months of 2025.
What drove it
- Financial Solutions returned to organic revenue growth of 2% in the third quarter.
- Management said net attrition in banking was down more than 25 percent year to date, major client wins were ramping, Clover continued to produce consistent underlying growth, and the modern merchant platform was gaining momentum.
- The company completed the sale of its student loan servicing business and formed MoneyPass Group, encompassing its MoneyPass Network, ATM Managed Services and Cash Intelligence businesses, while retaining a minority ownership interest.
- Project Elevate projected savings were increased to $1 billion from a prior $500 million estimate following a portfolio review and identification of additional operational efficiencies.
- Third-quarter results included an aggregate net gain of $100 million on the MoneyPass and student loan servicing transactions, as well as an $85 million impairment and other charge associated with certain leased facilities.
Concerns
- GAAP revenue declined 1% in the third quarter and adjusted revenue declined 1%.
- Merchant Solutions organic revenue declined 2% in the third quarter.
- Adjusted operating margin declined to 31.2% from 37.0% in the third quarter.
- Free cash flow was $2,039 million in the first nine months of 2026, compared to $2,879 million in the prior year period.
- The company recorded a $6.45 billion non-cash goodwill impairment charge following a triggering event associated with sustained decreases in its share price and market capitalization.
- GAAP operating margin was (105.7)% in the third quarter, reflecting the goodwill impairment charge within Corporate and Other.
What to watch
- Whether the revenue acceleration management expects in the fourth quarter materializes.
- The trajectory of Merchant Solutions organic revenue after its 2% third-quarter decline.
- Financial Solutions' ability to sustain organic revenue growth after its 2% third-quarter increase.
- Execution against Project Elevate and the increased $1 billion projected savings target.
- The planned $500 million fourth-quarter share repurchase and progress in debt repayment.
Balance sheet and cash flow
- Cash and cash equivalents were $545 million at September 30, 2026, compared to $798 million at December 31, 2025.
- Long-term debt was $25,809 million at September 30, 2026, compared to $27,758 million at December 31, 2025.
- Short-term and current maturities of long-term debt were $1,254 million at September 30, 2026, compared to $1,239 million at December 31, 2025.
- Cash and cash equivalents, ending balance in the cash flow statement, were $1,326 million for the nine months ended September 30, 2026, compared to $2,765 million for the nine months ended September 30, 2025.
- Debt proceeds were $3,101 million and debt repayments, including redemption and other costs, were $(5,586) million in the first nine months of 2026.
- Net cash used in investing activities was $(832) million and net cash used in financing activities was $(3,699) million in the first nine months of 2026.
Analysis
Fiserv reported a soft third quarter, with GAAP revenue of $5,196 million declining 1% and adjusted revenue of $4,852 million also declining 1%. Organic revenue was flat. Financial Solutions returned to 2% organic growth, but Merchant Solutions organic revenue declined 2%, leaving the company without aggregate organic growth in the quarter. For the first nine months, GAAP revenue declined 2%, adjusted revenue declined 3%, and organic revenue declined 3%.
Profitability weakened materially. GAAP operating loss was $(5,494) million and GAAP diluted loss per share was $(11.17), principally reflecting a $6,452 million goodwill impairment charge. The impairment was recorded following a triggering event associated with sustained decreases in the company's share price and market capitalization. Excluding adjustments, adjusted operating income was $1,512 million and adjusted operating margin was 31.2%, down from 37.0%. Adjusted EPS declined to $1.75 from $2.04.
Both operating segments showed margin pressure. Merchant Solutions operating margin was 28.7%, compared with 37.2%, while Financial Solutions operating margin was 38.1%, compared with 42.5%. Management highlighted lower banking attrition, ramping major client wins, consistent underlying Clover growth and momentum in its modern merchant platform. The company also completed the sale of its student loan servicing business and formed MoneyPass Group, retaining a minority ownership interest.
Cash generation was lower through the first nine months. Net cash provided by operating activities was $3,094 million versus $4,118 million, and free cash flow was $2,039 million versus $2,879 million. Capital expenditures, including capitalized software and other intangibles, increased to $(1,438) million from $(1,321) million. Long-term debt declined to $25,809 million at September 30, 2026 from $27,758 million at December 31, 2025, while cash and cash equivalents on the balance sheet were $545 million.
The company affirmed its 2026 organic revenue outlook of (1%) to 0% and adjusted EPS outlook of $7.20 to $7.40. Management said second-half initiatives remain on track to support expected fourth-quarter revenue acceleration. It raised Project Elevate projected savings to $1 billion from $500 million and expects to repurchase $500 million of common stock in the fourth quarter, bringing capital allocation back toward repurchases while it pursues operational efficiencies.
Management, verbatim
Our team is executing with urgency, and we are seeing meaningful progress. Net attrition in banking is down more than 25 percent year to date, major client wins are now ramping, Clover continues to produce consistent underlying growth and our modern merchant platform is gaining momentum.
Takis Georgakopoulos, Chief Executive Officer of Fiserv
As we simplify and focus our organization with an AI-everywhere mindset, we have increasing confidence that we can drive greater efficiency while investing in innovation and delivering differentiated client value.
Takis Georgakopoulos, Chief Executive Officer of Fiserv
Our third quarter performance was in line with our expectations, including a return to organic revenue growth in Financial Solutions.
Paul Todd, Chief Financial Officer of Fiserv
Not in the filing
stated, not guessed- Gross margin for the third quarter and first nine months of 2026
- Quarterly operating cash flow
- Quarterly free cash flow
- Dividend amount or dividend guidance
- Prior-quarter comparisons for reported metrics
- Prior outlook section was not provided, so comparisons of actual results with prior guidance are unavailable
- Forward guidance for gross margin, operating expenses and tax rate
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.