FISV · Fiserv, Inc.

Fiserv's Q1 2026 results showed GAAP revenue declining 2% to $5.03 billion, driven by a 5% drop in the Financial Solutions segment while Merchant Solutions was flat; organic revenue fell 4%, reflecting a 1% decline in Merchant Solutions and 6% in Financial Solutions. GAAP operating margins contracted sharply to 18.3% from 27.2%, with segment margins in Merchant Solutions at 26.4% (down from 34.2%) and Financial Solutions at 38.1% (down from 47.5%). Adjusted metrics followed suit, with revenue down 2% to $4.68 billion, adjusted operating margin at 29.7% (vs. 37.8%), and adjusted EPS declining 16% to $1.79. Cash generation weakened, with operating cash flow at $599 million (down from $648 million) and free cash flow at $259 million (down from $371 million). A $254 million net tax benefit from releasing foreign valuation allowances lowered the effective tax rate, partially offsetting pressures. CEO Mike Lyons noted execution on the One Fiserv Action Plan with stable account and volume trends, while CFO Paul Todd highlighted productivity initiatives like Project Elevate. Despite the misses, management affirmed full-year guidance of 1%-3% organic revenue growth and $8.00-$8.30 adjusted EPS, signaling confidence amid transformation efforts. Share repurchases of 3.3 million shares for $200 million underscore capital return commitment.