Fiserv Posts $6.45 Billion Goodwill Impairment as Adjusted EPS Falls
Key Facts
Fiserv recorded a non-cash goodwill impairment charge of $6.45 billion in the third quarter of 2026 and reported a diluted loss of $11.17 per share under accounting standards, compared with adjusted earnings of $1.75 per share. The company said in its earnings release that organic revenue was flat year over year, but performance varied across its businesses, with merchant solutions contracting and financial solutions growing. The results highlight a gap between the large accounting charge and weak operating performance across several measures. Adjusted earnings per share fell to $1.75 in the latest quarter from $2.32 in the same quarter of 2025. Adjusted operating margin in merchant solutions was 28.7%, compared with 37.2% a year earlier.
GAAP revenue was about $5.20 billion, down 1% from the third quarter of 2025, while adjusted revenue reached $4.85 billion, also down 1%. Overall organic revenue was flat, the company said, but merchant solutions posted a 2% organic decline, while financial solutions recorded 2% organic growth. This marked an improvement in financial solutions compared with the second quarter, when its organic revenue fell 8%, versus a 1% decline in merchant solutions. Overall organic revenue fell 5% in the second quarter. In the third quarter, merchant solutions remained the weaker of the two segments, while financial solutions returned to organic growth.
Pressure extended to operating income in both segments, with merchant solutions operating income falling to $724 million from $962 million in the third quarter of 2025. Financial solutions operating income declined to $887 million from $991 million in the year-earlier period. Alongside the organic revenue decline in merchant solutions, the segment's adjusted operating margin contracted to 28.7% from 37.2%. Financial solutions' adjusted operating margin was 38.1%, compared with 42.5% a year earlier. The segment figures show that margin declines were not limited to the merchant business, although they were more pronounced there. Chief Executive Officer Takis Georgakopoulos said, "Clover continues to deliver consistent underlying growth, and the modern merchant platform is gaining momentum."
On restructuring, the company raised its expected savings target for Project Elevate to $1 billion, from a previous estimate of $500 million. Fiserv said a comprehensive portfolio review identified additional operating efficiencies that allowed it to increase the target. The higher savings goal comes as the company expects 2026 organic revenue to range from a 1% decline to flat, with adjusted earnings per share of $7.20 to $7.40. Chief Financial Officer Paul Todd said, "The second-half initiatives are on track to support the revenue acceleration we expect in the fourth quarter," adding that the company was reaffirming its full-year outlook. This places execution of the initiatives during the second half at the center of the company's path toward the expected revenue acceleration.
On capital allocation, Fiserv expects to repurchase $500 million of common stock during the fourth quarter of 2026. The stock closed at $51.93 on November 2, after closing at $47.4 on October 27, according to EL7 data. This compares two earlier daily closes before the earnings announcement and does not, by itself, establish the announcement's effect on trading. The company is scheduled to discuss its third-quarter results on a webcast on November 3, 2026, at 7 a.m. Central time. The webcast follows the reaffirmation of the annual outlook and the announcement of the revised savings target and fourth-quarter buyback plan.