Fiserv, Inc.

Fiserv reported Q2 adjusted revenue of $4.96 billion, down 4% year over year, and organic revenue down 5%. 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 112% conversion. By segment, Merchant Solutions organic and adjusted revenue each declined 1%, while Financial Solutions organic and adjusted revenue each declined 8%. For 2026, management now expects organic revenue growth of minus 1% to flat, adjusted revenue growth 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 percent of adjusted revenue, and free cash flow conversion of approximately 90%.

Takis Georgakopoulos framed the quarter as a transition period and said the company is sharpening its focus on capital allocation, operational simplification, and technology excellence. He emphasized that Fiserv’s recurring revenue base is durable, that the company has significant positions in merchant, issuer processing, and bank relationships, and that AI and platform modernization can accelerate new solutions. He also laid out a more aggressive review of the portfolio, saying management will assess whether each product is best-in-class and act where it is not, while avoiding disruption for clients.

Paul Todd said Q2 was broadly in line with expectations, but the second half now reflects several headwinds: delays in newly contracted revenue and enterprise ramps, lower key product and other revenue, Argentina anticipation, and divestitures. He quantified Argentina as a 90-basis-point headwind to adjusted revenue and a 60-basis-point headwind to adjusted operating margin in Q2, and said the company is adding about $100 million of technology infrastructure spending, mainly in cyber and infrastructure for Financial Solutions. He also noted gross debt to adjusted EBITDA was below 3.2x, that the company issued $1 billion in eurobonds, completed a $1.4 billion tender offer and open-market repurchase for $1.2 billion total consideration, bought back 1.7 million shares for about $100 million, and expects leverage to finish the year around 3x.

Analysts pressed on why the second-half outlook worsened after June and whether the issues were structural. Management said most of the change was timing-related, including client implementation delays and deal slippage, while Argentina and divestitures were separate identifiable factors; Takis gave an example of a large client deal delayed by M&A. Questions also focused on core banking, Pismo competition, portfolio divestitures, pricing, and hardware weakness. Management said clients want stable platforms, good service, and future-ready products, said Finxact and the broader stack strengthen the competitive position versus Pismo, and confirmed hardware pressure is tied to prior elevated sales rather than weaker merchant acquisition.