Fiserv Q2 Results Miss, Cuts 2026 Outlook
Fiserv Q2 results show falling revenue and EPS and a cut to 2026 outlook, tightening near-term earnings visibility and prompting reprice risk for traders.
KEY TAKEAWAYS
- Adjusted revenue was $4.96 billion, down 4% with organic revenue down 5%.
- Adjusted EPS missed at $1.84, down 26% year over year.
- Company cut 2026 outlook to organic revenue (1%) to 0% and adjusted EPS $7.20-$7.40.
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Fiserv, Inc. (NASDAQ: FISV) reported on Aug. 6, 2026, that second-quarter revenue and earnings declined, prompting the company to lower its 2026 outlook to flat-to-negative organic revenue. Management attributed the revision to broad margin compression and operational challenges.
Quarter Results and Margins
For the three months ended June 30, 2026, Fiserv’s GAAP revenue fell 4% year over year to $5.29 billion, with GAAP operating margin shrinking to 19.2% from 30.7%. GAAP earnings per share dropped 37% to $1.17.
On an adjusted basis, revenue declined 4% to $4.96 billion, while organic revenue, which excludes acquisitions, divestitures, and currency effects, fell 5%. Merchant Solutions revenue decreased 1%, and Financial Solutions revenue declined 8%. Adjusted earnings per share fell 26% to $1.84, missing Street estimates near $1.91–$1.92. Adjusted operating margin narrowed to about 31.8% from roughly 39.6% a year earlier.
For the first half of 2026, GAAP revenue was $10.32 billion, down about 3% from the prior year. GAAP earnings per share declined 33% to $2.24, and operating margin dropped to 18.7% from 29.0%. Free cash flow for the period fell to $1.36 billion from $1.55 billion.
Revised Guidance and Outlook
Fiserv lowered its full-year 2026 guidance, now expecting organic revenue growth between negative 1% and flat, down from prior targets of 1% to 3%. Adjusted earnings per share guidance was cut to a range of $7.20 to $7.40 from $8.00 to $8.30. The company projects adjusted revenue growth between negative 1.5% and negative 0.5%, an adjusted operating margin near 31% to 31.5%, free cash flow conversion of about 90% of adjusted net income, capital expenditures in the high single digits as a percentage of adjusted revenue, and an adjusted tax rate near 19%.
Management described the quarter as the trough for organic revenue decline. It expects third-quarter organic revenue to fall in the low single digits before improving in the fourth quarter to mid-single-digit growth.
Drivers and Segment Trends
Management attributed the quarter’s weakness and the outlook cut to several factors: macroeconomic and foreign-exchange pressures in Argentina affecting Financial Solutions; delayed client implementations that shifted revenue to later periods; and weakness in hardware and product revenue, which fell from $1.21 billion to $1.00 billion year over year. Higher technology spending and transformation costs related to the One Fiserv action plan also weighed on margins.
The company’s revised outlook and margin compression reflect operational challenges across products and regions that Fiserv is addressing through its transformation program.
