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%; recurring revenue and transaction volumes remained stable, and free cash flow conversion was strong.

• Operating income and margins fell significantly due to higher personnel, technology, and transformation costs, with adjusted operating margin at 31.8% and GAAP margin at 19.2%.

• Leadership transition and transformation initiatives (One Fiserv) focused on capital allocation, operational excellence, and technology upgrades, with urgency on portfolio review.

• Strategic partnerships and divestitures included the MoneyPass Group joint venture, Mastercard Commerce Hub integration, and announced sale of the student loan servicing business.

• Free cash flow exceeded $1 billion in Q2, with a trailing 12-month conversion rate above 100%; share repurchases and debt reduction continued.

Financial highlights

• Q2 2026 GAAP revenue was $5.29B and adjusted revenue was $4.96B; H1 2026 GAAP revenue was $10.32B and adjusted revenue $9.64B.

• Q2 2026 adjusted operating income was $1.58B, with adjusted operating margin at 31.8%; GAAP operating margin was 19.2%.

• Q2 2026 adjusted EPS was $1.84 and GAAP EPS was $1.17; H1 2026 adjusted EPS was $3.63 and GAAP EPS $2.24.

• Free cash flow for Q2 was $1.1B; H1 2026 free cash flow was $1.36B, with a trailing 12-month conversion rate of 103%.

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

Outlook and guidance

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

• Adjusted EPS guidance for 2026 set at $7.20-$7.40, down from prior $8.00-$8.30.

• Adjusted operating margin for 2026 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.

• Capital expenditures to remain high single digits as a percentage of adjusted revenue; free cash flow conversion targeted at 90%.