Fiserv, Inc.

Fiserv reported Q2 adjusted revenue of $4.96 billion, down 4% year over year, and organic revenue down 5%. Q2 adjusted operating income was nearly $1.6 billion, with adjusted operating margin of 31.8%; adjusted EPS was $1.84. Free cash flow was $1.1 billion, with free cash flow conversion of 112%. On a segment basis, Merchant Solutions adjusted revenue declined 1% and Financial Solutions adjusted revenue declined 8%. For 2026, management now expects organic revenue growth of minus 1% to flat, adjusted revenue of down 1.5% to down 0.5%, adjusted operating margin of 31% to 31.5%, adjusted EPS of $7.20 to $7.40, capex in the high single digits as a percentage of adjusted revenue, and free cash flow conversion of approximately 90%.

Takis Georgakopoulos framed the quarter as a transition period and said he is focusing the company on capital allocation, product simplification, and faster execution. He emphasized that Fiserv has durable recurring revenue, a strong market position in merchant, issuer processing, and banking, and that AI and the modern stack can unlock faster product delivery. He also said the company is reviewing its portfolio more broadly to determine where it has a right to win and where it should divest, partner, or otherwise change ownership structures.

Paul Todd said Q2 was in line with expectations, but highlighted two incremental revenue headwinds: Argentina anticipation, which was a 90 basis point headwind to adjusted revenue and a 60 basis point hit to operating margin, and weaker hardware revenue in merchant. He said second-half adjusted revenue should grow about 2%, but full-year guidance now reflects timing shifts in contracted revenue and enterprise ramps, lower key product revenue, Argentina, and divestitures. He also pointed to a roughly $100 million incremental technology infrastructure investment, gross debt to adjusted EBITDA below 3.2x, a completed $1.4 billion tender offer and open-market repurchase for $1.2 billion total consideration, $1 billion of eurobonds issued, and a target to end the year at approximately 3x leverage.

Analysts focused on why the second-half outlook was cut after earlier guidance was reiterated, and management said the main changes were timing delays in client ramps and contracted revenue, Argentina volatility, divestitures, and lower hardware revenue. Takis said he spoke with clients directly and described delays as largely quarter-shifts tied to implementation timing or client M&A, not deal loss. Questions also centered on core banking, Pismo competition, pricing, and portfolio review; management said customer priorities are stability, service, and future readiness, and that Fiserv believes its broad product set and Finxact momentum leave it well positioned. On pricing, Paul said yields were stable and the fourth quarter will lap last year’s pricing actions.