Fiserv Inc. (FISV) First Take Another big guidance reset

Equity Research 6 August 2026 | 8:06AM EDT

Fiserv Inc. (FISV): First Take: Another big guidance reset

Bottom line: FISV reported another disappointing quarter with another guidance Will Nance | reset, reducing full year EPS guide by 10%, and implying more significant revisions in Goldman Sachs & Co. LLC

2H26. Weakness in the business was broadbased, with top line and margins coming Jack Evans | in below expectations across nearly every segment. Clover numbers were also Goldman Sachs & Co. LLC

weaker, with 2% revenue growth (Street at 6%). Putting it altogether, this is another Chandru Ravikumar | big reset with Fiserv in the wake of another major turnover of senior management. Goldman Sachs India SPL We expect shares to underperform on the back of results and believe that rebuilding investor confidence will likely require a stabilization of the business.

What we are looking for on the call: 1) updated thoughts on strategic options for the business, 2) color on underperformance in FS, 3) thoughts on 2H revisions

Consolidated results: FISV reported adjusted revenue of ~$4.96bn, -2% vs Visible Alpha Consensus Data expectations, with -4.5% yoy revenue growth, including -1.4% growth in Merchant Solutions (-1.0% organic) and -7.7% in Financial Solutions (-8.0% organic). Adjusted operating income was -5% vs street expectations at ~$1.58bn vs ~$1.66bn consensus, with a 31.8% operating margin (vs consensus, 32.9%). FISV posted adjusted EPS of $1.84, 7pts lower than the street’s $1.91 expectations.

n Merchant Solutions: Merchant Solutions revenue was ~$2.61bn (vs VA consensus of ~$2.66bn), -1.4% yoy (-1.0%% organic). Operating income for the quarter came in at $781mn vs the Street at $816mn, with margins of 29.9% (vs 30.7%). Clover GPV was up 9% reported (11% excluding gateway conversion), with 2% revenue growth reported (11pts impact from one-time revenues). n Financial Solutions: Financial solutions adjusted revenue came in at ~$2.36bn (vs VA consensus of ~$2.39bn), growing -7.7% yoy (-8.0% organically). Operating income for the quarter was $912mn, with margins coming in at 38.7% vs the Street at 41.1%. n Corporate & other: Adjusted operating income for the quarter came in at -$113mn.

Guidance: FISV lowered its revenue, margins and EPS guidance for FY2026, with expectations for organic growth to be -1% to 0% and adjusted revenue growth to be -1.5% to -0.5% with no FX impact, ~50bps acquisition headwind and ~100ps

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Goldman Sachs Fiserv Inc. (FISV)

divestiture adjustments. Adjusted operating margin is expected to be 31-31.5%. On EPS, the company reduced expectations for adjusted EPS to $7.20-$7.40, implying ~-17% to -14% growth. FCF conversion is expected to be ~90%, which implies FCF of ~$3.5bn based on EPS guidance and consensus share count.

Exhibit 1: FISV Estimates vs Actuals $ in millions, unless noted FISV estimates vs. actuals Actual Actual Actual GS est. Cons. est Act vs GS Act vs cons QoQ YoY Comments 2Q25 1Q26 2Q26A 2Q26 2Q26 %∆ %∆ 2Q/1Q 26/25

Clover Volume % -1% 13% 9% % YoY growth 8% 9% 9% 10% 10% -110 bps -86 bps -56 bps 123 bps Clover Revenue Growth* 30% 6% 2% 5% 6% -259 bps -400 bps -2800 bps 13% excl data, hardware, and Arg anticipations

Small business 1,774 1,609 1,760 1,793 1,794 -2% -2% 9% -1% % YoY Growth 11% 1% -0.8% 1% 1% -185 bps -191 bps -173 bps -1139 bps % Organic growth, yoy 9% -1% 0.0% 1% 1% -143 bps -125 bps 88 bps -929 bps Enterprise % -2% 14% -1% % YoY Growth 8% 2% -0.5% 2% 2% -212 bps -248 bps -250 bps -881 bps % Organic growth, yoy 12% 3% 0.0% 3% 2% -300 bps -243 bps -339 bps -1218 bps Processing % -1% 5% -7% % YoY Growth 7% -9% -6.7% -10% -6% 322 bps -93 bps 199 bps -1391 bps % Organic…