Fiserv Inc. (FISV) Key takeaways Another reset likely to push out the turnaround story

Equity Research 6 August 2026 | 9:40PM EDT

Fiserv Inc. (FISV): Key takeaways: Another reset likely to push out the turnaround story

Bottom line: Shares were flat, despite the reset, as we believe positioning skewed Will Nance | negative and the guidance reduction was expected. However, we think visibility to Goldman Sachs & Co. LLC

the turnaround was incrementally lower, as 1) the higher levels of investments in the Jack Evans | business calls the long term operating margin framework into question, and 2) the Goldman Sachs & Co. LLC

weaker than expected top line outlook makes seeing the back half inflection more Chandru Ravikumar | difficult. While FISV’s explanation for the revenues moves broadly made sense (client Goldman Sachs India SPL side implementation delays, weaker macro in Argentina, too aggressive on prior hardware assumptions), we believe the story is firmly in show-me territory. Looking ahead, we believe seeing cleaner comps in the back half of the year should help to build visibility as the non-recurring revenue headwinds fade. However, with the company doubling down on investment spending on limited top line growth, we expect margins to remain under pressure into 2026. While shares are inexpensive at 11x 2027 EV/Unlevered FCF, we believe an inflection in revenue growth and greater visibility to a stabilization of margins is necessary for shares to outperform, and thus we remain Neutral rated.

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

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Goldman Sachs Fiserv Inc. (FISV)

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 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.

n From the call: Management indicated adjusted revenue to grow 2% YoY with 3Q down LSD and 4Q up MSD - indicating that prior 6-8% 2H adjusted revenue outlook, the company now expects 2pts of negative impact from delays in newly contracted revenue and enterprise client ramps, 1pt lower from Argentina, 1pt lower from key product and other revenue, and 1pt lower from divestitures, and 1pt lower from student loan servicing and atm business (all in 6pts lower than previously stated guide). The…