Fiserv (FI) Q2 2024 earnings summary

Executive summary

• Q2 2024 adjusted revenue grew 7% to $4.8B–$5.1B, with organic revenue up 18% and adjusted EPS up 18% to $2.13; GAAP net income rose 31% to $894M.

• Merchant and Financial Solutions segments both delivered strong growth, with Merchant Solutions organic revenue up 28% and Financial Solutions up 8%.

• Operating margin expanded to 38.4% (adjusted) and 28.0% (GAAP), with free cash flow of $1.0B in Q2 and $4.0B over the trailing 12 months.

• Company raised 2024 adjusted EPS outlook to $8.65–$8.80 and reaffirmed organic revenue growth guidance of 15–17%.

• Celebrated 40th anniversary, recognized as a top fintech and admired company, and completed segment realignment in Q1 2024.

Financial highlights

• Q2 2024 GAAP revenue: $5.11B (+7% YoY); adjusted revenue: $4.8B (+7% YoY); net income: $894M (+31% YoY); adjusted EPS: $2.13 (+18% YoY).

• Q2 adjusted operating margin: 38.4% (+160 bps YoY); GAAP operating margin: 28.0% (+420 bps YoY).

• Free cash flow: $1.0B in Q2; $4.0B trailing 12 months; $1.48B for first six months of 2024.

• Share repurchases: $1.5B in Q2 (10M shares); $3.0B YTD (20.2M shares); $5B–$5.2B over last 12 months.

• Total debt: $25.5B as of June 30, 2024; total assets: $93.4B.

Outlook and guidance

• 2024 organic revenue growth expected at 15–17%; adjusted EPS outlook raised to $8.65–$8.80 (15–17% growth).

• Adjusted operating margin expansion guidance increased to over 135 bps for 2024.

• Free cash flow guidance raised to ~$4.7B for the year.

• Normalized organic growth for 2024 expected at 11–13% after adjusting for Argentina's transitory benefit.

• Management expects continued sustainable growth and profitability, with focus on capital allocation and innovation.