Fiserv (FI) Q1 2026 earnings summary

Executive summary

• Q1 2026 results were in line with expectations, reflecting ongoing execution of the One Fiserv action plan, targeted investments in talent, technology, and client service, and continued transformation initiatives.

• The company is navigating a transition year, absorbing impacts from prior client service challenges, non-recurring revenue, and higher costs, with stronger performance expected in the second half and into 2027.

• Strategic initiatives include AI-driven enhancements, new product launches, and expansion in both Merchant and Financial Solutions segments.

• Stable macroeconomic conditions and business activity supported both major business segments.

• Net income attributable to shareholders was $571 million, a 33% decrease from Q1 2025, with diluted EPS of $1.07 versus $1.51 last year.

Financial highlights

• Q1 2026 adjusted revenue was $4.68 billion, down 2%–2.4% year-over-year, in line with guidance; organic revenue declined 3.6%–4%.

• Adjusted operating income was $1.4 billion with a margin of 29.7%, down from 34.9%–37.8% in Q1 2025.

• Adjusted EPS was $1.79, down 16% year-over-year, positively impacted by discrete tax benefits; GAAP EPS was $1.07, down 29%.

• Free cash flow was $259 million, reflecting typical Q1 seasonality and a trailing 12-month conversion of 96%.

• Capital expenditures totaled $458 million, or 9% of revenue, in line with guidance.

Outlook and guidance

• 2026 organic and adjusted revenue growth expected at 1%–3%; adjusted EPS guidance is $8.00–$8.30; adjusted operating margin expected at ~34%.

• Merchant Solutions revenue projected to grow mid-single digits; Financial Solutions expected to be flat to slightly down.

• Free cash flow conversion expected at ~90% of adjusted net income for the year.

• Q2 anticipated as the trough for year-over-year revenue decline, with improvement in the second half.

• 10–15% Clover GPV growth expected for 2026, excluding gateway conversion.