Fiserv (FI) Q3 2024 earnings summary

Executive summary

• Adjusted revenue grew 7% to $4.9B in Q3, with organic revenue up 15% and adjusted EPS rising 17% to $2.30, driven by strong Merchant and Financial segment performance despite currency headwinds.

• Free cash flow was $1.9B for Q3 and $3.34B YTD, with operating cash flow up 24% to $4.41B YTD.

• Returned $1.3B to shareholders via share repurchases in Q3, totaling $5.3B over the last 12 months.

• Net income attributable to shareholders was $564M in Q3, down from $952M a year ago, due to a $570M non-cash impairment related to the Wells Fargo Merchant Services alliance.

• Recognized as the #1 global fintech provider by IDC for the second consecutive year.

Financial highlights

• Q3 GAAP revenue: $5.22B (+7% YoY); Q3 adjusted revenue: $4.9B (+7% YoY); organic revenue growth: 15% in Q3.

• Q3 adjusted operating margin: 40.2% (+170 bps YoY); Q3 GAAP operating margin: 30.7% (flat YoY).

• Q3 adjusted EPS: $2.30 (+17% YoY); Q3 GAAP EPS: $0.98 (–37% YoY).

• Free cash flow YTD: $3.34B (+23% YoY); operating cash flow YTD: $4.41B (+24% YoY).

• Share repurchases: $1.3B in Q3; $5.3B over the past 12 months.

Outlook and guidance

• 2024 organic revenue growth outlook raised to 16–17%.

• 2024 adjusted EPS guidance increased to $8.73–$8.80, representing 16–17% growth.

• Adjusted margin expansion outlook increased to at least 150 bps.

• Free cash flow guidance updated to above $4.7B.

• Excluding Argentina’s transitory benefits, organic revenue growth would be 11–12%.