Fiserv, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP revenue was $5.20 billion in Q3 2026, a 1% decrease year-over-year; GAAP revenue for the first nine months was $15.52 billion, a 2% decrease.
• GAAP loss per share was $(11.17) in Q3 2026 and $(8.90) for the first nine months, driven by a non-cash goodwill impairment charge of $6.45 billion recorded in Q3.
• Adjusted revenue was $4.85 billion in Q3 2026 (flat organic revenue) and $14.49 billion for the first nine months (3% decline).
• Adjusted earnings per share (EPS) was $1.75 in Q3 2026 and $5.38 for the first nine months.
• Adjusted operating margin was 31.2% in Q3 2026 and 30.9% for the first nine months, compared to 37.0% and 38.2% respectively in the prior year periods.
• Net cash provided by operating activities was $3.09 billion for the first nine months of 2026, down from $4.12 billion in the prior year period.
• Free cash flow was $2.04 billion for the first nine months of 2026, compared to $2.88 billion in the prior year period.

Guidance and Future Outlook:

• The company reaffirmed its full-year 2026 outlook for organic revenue growth of (1%) to 0% and adjusted EPS of $7.20 to $7.40.
• Management expects revenue acceleration in the fourth quarter of 2026.
• Project Elevate savings target was raised to $1 billion, up from the previous $500 million estimate.

Business Segments and Product Lines:

• Merchant Solutions: GAAP revenue decreased 3% in Q3 2026 and 1% for the first nine months; organic revenue declined 2% in Q3 and 2% for the first nine months. Clover continues to produce consistent underlying growth.
• Financial Solutions: GAAP revenue was flat in Q3 2026 and decreased 4% for the first nine months; organic revenue grew 2% in Q3 and declined 4% for the first nine months. Net attrition in banking is down more than 25% year-to-date.
• Corporate and Other: GAAP operating loss was $(7.105) billion in Q3 2026, primarily due to the goodwill impairment charge.
• The company completed the sale of its student loan servicing business and formed MoneyPass Group, a joint venture encompassing MoneyPass Network, ATM Managed Services, and Cash Intelligence businesses, in which it maintains a minority ownership interest.
• The modern merchant platform is gaining momentum.

Market and Competitive Landscape:

• Major client wins are ramping up.
• The company is executing an "AI-everywhere" mindset to simplify and focus its organization.

Risks and Challenges:

• Significant non-cash goodwill impairment charge of $6.45 billion recorded in Q3 2026 due to a triggering event associated with sustained decreases in share price and market capitalization.
• Forward-looking statements note risks including competition, customer demand changes, technology evolution, security breaches, fraud, economic conditions (inflation, interest rates, recession), regulatory changes, and the ability to integrate acquisitions.

Management Commentary and Tone:

• CEO Takis Georgakopoulos stated the team is "executing with urgency" and seeing "meaningful progress," citing reduced banking attrition, ramping major client wins, and momentum in the modern merchant platform.
• CFO Paul Todd noted performance was "in line with expectations," highlighted the return to organic revenue growth in Financial Solutions, and expressed confidence in supporting revenue acceleration in Q4.

Other Key Points:

• The company expects to repurchase $500 million of common stock during the fourth quarter of 2026 under its existing authorization.
• Share repurchases are resuming earlier than anticipated.
• A net gain of $100 million was recorded in Q3 2026 on the sale of a 51% controlling preferred financial interest in MoneyPass Group and the student loan servicing business.
• A net gain of $83 million was recorded in the first nine months of 2026 on the sale-leaseback of certain facilities.
• The company recorded an $85 million impairment and other charge associated with certain leased facilities in Q3 2026.