Fiserv Raises Project Elevate Savings Target to $1 Billion, Plans $500 Million Share Buyback
Key Facts
Fiserv raised its cumulative savings target for its Project Elevate program to $1 billion from $500 million on Nov. 3 and said it plans to buy back $500 million of shares in the fourth quarter of 2026. The company attributed the higher target to a comprehensive review of its business portfolio that identified additional operational efficiency opportunities. In its earnings release, it said a "comprehensive portfolio review" had uncovered those opportunities, without raising its full-year financial outlook. The announcement puts cost cuts and returning capital to shareholders at the center of the company's response to quarterly results marked by mixed performance across its segments. Fiserv shares closed at $62.88 on Nov. 6, according to EL7 data.
The company said its increased confidence allows it to resume share repurchases earlier than expected, allocating $500 million to the fourth quarter. That marks a return to buybacks during the remainder of the year, alongside doubling the savings program's previous target. But the announcement did not come with a change to the 2026 outlook: Fiserv kept its estimate for organic revenue growth at between a 1% decline and zero, and adjusted earnings per share at between $7.20 and $7.40. Chief Financial Officer Paul Todd said second-half initiatives are on track to support the expected acceleration in revenue in the fourth quarter, and that the company is reaffirming its full-year guidance. Those projections remain the framework the company has set for assessing the impact of its initiatives in the coming months.
The savings announcement came as organic revenue was broadly flat in the third quarter of 2026, with Merchant Solutions down 2% and Financial Solutions up 2%. Revenue under generally accepted accounting principles (GAAP) was about $5.20 billion, down 1% from the third quarter of 2025. The company reported adjusted earnings of $1.75 per share for the quarter, and adjusted earnings per share of $5.38 for the first nine months of the year. Meanwhile, the adjusted operating margin fell to 31.2% in the third quarter from 37.0% a year earlier. The results highlight the gap between broadly stable organic revenue and the pressure on margins compared with the year-earlier period.
The results also showed a GAAP loss of $11.17 per share in the third quarter, after the company recorded a $6.45 billion noncash goodwill impairment charge. On cash, net cash provided by operating activities was $3.09 billion in the first nine months of 2026, compared with $4.12 billion in the same period of 2025. In banking, Chief Executive Officer Takis Georgakopoulos said net client losses had fallen by more than 25% since the start of the year, and new client wins had begun contributing to growth. Those indicators provide context for management's assertion that second-half initiatives are expected to support a fourth-quarter revenue acceleration. Georgakopoulos said, "Net client losses in the banking business have decreased by more than 25% since the start of the year."
In the broader payments sector, Reuters reported on Oct. 30 that CD&R was considering a potential deal to take Global Payments private, and that talks remained at an early stage and might not lead to an agreement. The report said CD&R had teamed up with GTCR on a joint offer, citing the Financial Times. It also quoted William Blair analysts as saying Global Payments' net debt, at about $22 billion, could pose an obstacle to a deal. The reports do not establish that a deal was completed or that it was connected to Fiserv's share-price movement, but they place payments companies' moves in the context of corporate and operational reassessments across the sector. Earlier, Fiserv shares fell about 41% during trading to $74.14 on Oct. 29, 2025, after the company cut its revenue and earnings growth outlook.