Fiserv (FI) Investor Day 2026 summary

Strategic transformation and execution

• Launched the One Fiserv action plan after a comprehensive review, focusing on client service, product delivery, tech resilience, and disciplined capital allocation.

• Leadership and culture changes implemented, including new co-presidents and hires from top financial and technology firms, increasing employee engagement.

• Five pillars drive the strategy: client-first service, Clover as the SMB OS, product innovation, AI-driven productivity (Project Elevate), and disciplined capital allocation.

• Sale of a majority stake in the ATM business to Bridgepoint Group/Partners aligns with portfolio optimization, generating $275-300M after-tax proceeds and a 49% JV interest.

• No forced core migrations; modernization is modular and client-driven, with significant investment in service and tech resiliency.

Financial guidance and outlook

• Medium-term (2026-2029) targets: 4%-6% compounded adjusted revenue growth, >37% operating margin by 2029, and 90% free cash flow conversion.

• Over $13.5B in free cash flow expected from 2027-2029, with majority directed to stock buybacks while reducing leverage to 2.5x-3.0x and maintaining investment-grade rating.

• 2026 is a transition year: first half revenue declines, second half growth of 6%-8%, full year growth of 1%-3%, ~34% adjusted operating margin, and $8.00-$8.30 adjusted EPS.

• Project Elevate, an AI-led productivity initiative, aims for $500M+ net cost reduction by 2029, adding 200+ basis points to margins.

• Majority of free cash flow to be returned to shareholders via buybacks, while reducing leverage to 2.5x by 2029.

Merchant Solutions and Clover growth

• Merchant business processes $4.6T in transactions (2025), with 3.9M SMBs and 900K Clover merchants.

• Clover revenues at $3.3B, with GPV growth consistently at 10%+; targeting 15%-20% revenue growth for Clover.

• Key Clover growth drivers: product suite expansion, omni-channel, new verticals (healthcare, professional services), international markets, and conversion of non-Clover SMBs.

• AI adoption is accelerating modernization, with 40% of engineers using AI and 25% of code AI-generated, aiming for near 100% by year-end.

• Enterprise merchant business focuses on e-commerce, omni-channel, and value-added services via Commerce Hub.