Fiserv Cuts Outlook as Revenue Decline Deepens
Product revenue dropped 17% to $1.00 billion, accounting for most of the second-quarter decline.
Fiserv (FISV), the payments and financial-technology provider, reported a deeper organic-revenue decline in the second quarter as weakness in Financial Solutions drove a broad pullback.
Organic revenue fell 5%, after declining 4% in the first quarter. Fiserv now expects 2026 organic revenue to decline 1% or remain flat, down from its previous forecast for growth of 1% to 3%.
GAAP revenue fell 4% to $5.29 billion, worsening from a 2% decline in the prior quarter, though revenue increased about 5% sequentially. GAAP earnings dropped 37% to $1.17 a share, compared with a 29% decline in the first quarter. Adjusted earnings fell 26% to $1.84 a share.
Financial Solutions accounted for the sharper deterioration, with organic and GAAP revenue each falling 8%. Merchant Solutions posted 1% declines on both measures. In the first quarter, Financial Solutions revenue had fallen 5% and Merchant Solutions revenue was flat.
Margins remained under pressure despite sequential improvement. Fiserv’s GAAP operating margin narrowed 11.5 percentage points from a year earlier to 19.2%, while its adjusted margin contracted 7.8 points to 31.8%. Financial Solutions’ margin fell 10 points year over year to 38.7%, and Merchant Solutions’ margin declined 4.6 points to 30.0%.
Fiserv now expects adjusted earnings of $7.20 to $7.40 a share for 2026, compared with its previous range of $8.00 to $8.30. The revised forecast lowered the endpoints by 80 cents and 90 cents, respectively.
The company recorded $187 million of One Fiserv transformation-program expense in the quarter, bringing the first-half total to $329 million. First-half operating cash flow declined 10% to $2.08 billion, and free cash flow fell 12% as capital spending increased.
Fiserv repurchased $100 million of stock during the quarter and completed debt-refinancing and reduction actions. In August, it also completed the MoneyPass Group joint venture, transferring three businesses into an entity in which it retained a minority interest.