Fiserv (FISV) Q2 2026 earnings summary

Executive summary

• Q2 2026 GAAP and adjusted revenue declined 4% year-over-year, with adjusted EPS down 26% and GAAP EPS down 37%; first half results also showed a 3% revenue decline.

• Operating income and margins fell sharply due to higher personnel, technology, and transformation costs, including One Fiserv expenses.

• Free cash flow conversion remained strong, exceeding $1 billion in Q2, with leverage ratio slightly improved quarter-over-quarter.

• Strategic initiatives included the MoneyPass Group joint venture, Commerce Hub integration with Mastercard, and a comprehensive portfolio review.

• Divestitures and restructuring actions, including the sale of the student loan servicing business and organizational streamlining, were executed or announced.

Financial highlights

• Q2 2026 GAAP revenue: $5.29B; adjusted revenue: $4.96B; adjusted operating income: $1.58B; adjusted operating margin: 31.8%.

• Q2 2026 GAAP EPS: $1.17; adjusted EPS: $1.84; free cash flow: $1.1B; trailing 12-month free cash flow conversion: 103%.

• First half 2026 GAAP revenue: $10.32B; adjusted revenue: $9.64B; GAAP EPS: $2.24; adjusted EPS: $3.63.

• Capital expenditures for H1 2026: $956M, about 9% of revenue.

• Net income attributable to shareholders Q2: $627M; H1: $1.20B.

Outlook and guidance

• 2026 organic revenue growth outlook revised to (1%) to 0%; adjusted revenue growth expected at (1.5%) to (0.5)%.

• Adjusted EPS guidance for 2026 is $7.20-$7.40; adjusted operating margin expected at 31%-31.5%.

• Medium-term (2027-2029) organic revenue growth outlook is 4%-6% CAGR; margin expansion and double-digit EPS growth expected from 2027 onward.

• Free cash flow conversion targeted at ~90% for the year.

• Management expects continued macroeconomic pressures, including inflation, interest rates, and currency volatility.