Fiserv posts adjusted EPS of $1.75, topping third-quarter estimates
Key Facts
Fiserv reported adjusted earnings of $1.75 per share for the third quarter on November 3, 2026, topping the consensus estimate of $1.72, according to Zacks. In its results statement, the company said adjusted revenue was $4.85 billion, down 1% from the same period a year earlier. Adjusted revenue for the first nine months reached $14.49 billion, down 3% year over year. Organic revenue was flat in the quarter, while it declined 3% over the first nine months. The company reaffirmed its full-year outlook as its two main businesses delivered mixed results and profitability and cash flow measures declined.
Revenue under GAAP was about $5.20 billion in the third quarter, down 1% from the same period in 2025. Merchant Solutions revenue on this basis fell 3%, while Financial Solutions revenue was flat. On an organic basis, Merchant Solutions declined 2%, while Financial Solutions grew 2%. Overall stability thus masked divergence between the two businesses, with continued contraction in merchant solutions and a return to growth in financial solutions. The nine-month figures underscore the broader pressure on organic revenue, which fell 3% over that period.
Adjusted earnings per share were $1.75 for the quarter and $5.38 for the first nine months, according to the company’s statement. The comparison cited by Zacks showed quarterly earnings per share of $2.04 a year earlier, even as the current quarter’s result topped the consensus estimate. Meanwhile, the adjusted operating margin fell to 31.2% in the third quarter from 37.0% a year earlier. For the first nine months, the margin was 30.9%, compared with 38.2% in the same period of 2025. Free cash flow also fell to $2.04 billion from $2.88 billion, while net cash provided by operating activities declined to $3.09 billion from $4.12 billion.
Fiserv posted a GAAP loss of $11.17 per share in the third quarter and $8.90 per share for the first nine months. The company said it recorded a non-cash goodwill impairment of $6.45 billion during the quarter, related to the continued decline in its share price and market value. This large charge separates the reported accounting loss from the adjusted earnings per share the company uses in its annual guidance. In the same quarter, the company completed the sale of its student loan servicing business and formed the MoneyPass Group joint venture, which includes the MoneyPass network and ATM and cash management services, while retaining a minority stake. These moves are part of the business portfolio changes the company announced alongside its review of operational efficiency opportunities.
Fiserv raised the cumulative savings target for its Elevate initiative to $1 billion from a previous estimate of $500 million, following a comprehensive portfolio review and the identification of additional efficiency opportunities. CEO Takis Georgakopoulos said net client losses in the banking sector had declined by more than 25% since the start of the year and that large-client wins had “begun to accelerate,” while Clover continued to post consistent underlying growth. The company reaffirmed its forecast for organic revenue to contract by between 1% and zero in 2026, and for adjusted earnings per share of $7.20 to $7.40. CFO Paul Todd said second-half initiatives were “on track to support the revenue acceleration we expect in the fourth quarter,” adding that the company was reaffirming its full-year guidance. Management thus points to fourth-quarter acceleration, savings and client wins as measures to watch in executing its plan for the year.
The company expects to repurchase $500 million of common stock in the fourth quarter of 2026 under its existing authorization. It also scheduled its third-quarter results discussion as a live webcast at 7 a.m. Central Time on November 3, with a replay available about an hour after it ends. Fiserv shares closed at $51.93 in the November 2 session, according to EL7 data. Zacks said earnings per share topped the consensus estimate, while the information provided did not include a figure for the stock’s move after the results announcement. The announced milestones for the period ahead center on executing the buyback and tracking the revenue acceleration management expects in the fourth quarter.