Fiserv Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 5 May 2026: press release. Guidance figures: 6 kept. The quarter’s numbers.

Read the filing

Key takeaways

• GAAP revenue fell 2%: GAAP revenue was $5.03 billion, down 2% from $5.13 billion a year earlier. Management said the quarter's results were in line with its February expectations. Source
• Organic revenue fell 4%: Organic revenue decreased 4%, with Merchant Solutions down 1% and Financial Solutions down 6%. Adjusted revenue was $4.68 billion, down 2%. Source
• EPS fell on both bases: GAAP EPS was $1.07, down 29%. Adjusted EPS was $1.79, down 16% from $2.14 in the prior-year quarter. Source
• Free cash flow fell to $259 million: Operating cash flow was $599 million, against $648 million. Free cash flow was $259 million, against $371 million a year earlier. Source
• Tax benefit lowered effective rate: A net $254 million income tax benefit from releasing various foreign valuation allowances was partly offset by $74 million of other discrete tax items. Source
• Transformation expenses reached $142 million: One Fiserv transformation program expenses were $142 million, including $41 million of incremental compensation for retention awards and restricted stock units. Source
• Severance costs rose to $73 million: Severance costs were $73 million, against $15 million a year earlier. Source

“During the first quarter, we remained in execution mode, delivering results in line with the expectations we shared in February”

Mike Lyons, Chief Executive Officer of Fiserv

Guidance

What changed from last quarter

• Guidance kept: Organic revenue growth and adjusted EPS guidance for 2026 are unchanged from the February release. Source
• New: The company recorded a net gain on a sale-leaseback of certain facilities in the first quarter of 2026, a transaction not in the prior-quarter release. Source
• New: The CFO referred to Project Elevate as a productivity initiative making progress; the prior-quarter release did not name it. Source

Results and growth drivers

• GAAP revenue fell 2%: GAAP revenue was $5.03 billion, down 2% from $5.13 billion a year earlier. Management said the quarter's results were in line with its February expectations. Source
• Organic revenue fell 4%: Organic revenue decreased 4%, with Merchant Solutions down 1% and Financial Solutions down 6%. Adjusted revenue was $4.68 billion, down 2%. Source
• EPS fell on both bases: GAAP EPS was $1.07, down 29%. Adjusted EPS was $1.79, down 16% from $2.14 in the prior-year quarter. Source
• Demand trends described as stable: The CFO said first quarter results were supported by stable underlying account and volume trends. Source

Segments and revenue mix

• Merchant revenue flat, margin lower: Merchant Solutions revenue was flat at $2,373 million, and its operating margin was 26.4% against 34.2%. Source
• Financial revenue down 5%: Financial Solutions revenue fell 5% to $2,302 million, and its operating margin was 38.1% against 47.5%. Source
• Segment operating income lower: Merchant Solutions operating income was $626 million against $810 million. Financial Solutions operating income was $877 million against $1,148 million. Source

“Our team is focused on advancing the One Fiserv Action Plan and while significant work remains, we are encouraged by our progress.”

Mike Lyons, Chief Executive Officer of Fiserv

Margins and cost base

• Operating margin fell to 18.3%: GAAP operating margin was 18.3%, against 27.2%. Adjusted operating margin was 29.7%, against 37.8%, and adjusted operating income was $1,390 million. Source
• Processing and SG&A costs rose: Cost of processing and services rose to $1,610 million from $1,389 million. SG&A rose to $1,885 million from $1,682 million. Source
• Asset sale gain within expenses: Expenses include an $83 million net gain on sale of assets, compared with $20 million in the first quarter of 2025. Source

Cash flow and working capital

• Free cash flow fell to $259 million: Operating cash flow was $599 million, against $648 million. Free cash flow was $259 million, against $371 million a year earlier. Source
• Payables outflow larger: Accounts payable and other liabilities used $606 million of operating cash, against $445 million a year earlier. Source
• Capital spending increased: Capital expenditures, including capitalized software and other intangibles, were $458 million, against $335 million a year earlier. Source

“First quarter results were supported by stable underlying account and volume trends”

Paul Todd, Chief Financial Officer of Fiserv

Share repurchases and debt

• Repurchased 3.3 million shares: The company repurchased 3.3 million shares for $200 million in the first quarter of 2026. Source
• Treasury stock cash outflow fell: Cash paid for treasury stock, including shares withheld for taxes, was $240 million, against $2,352 million a year earlier. Source
• Asset sale proceeds received: Investing cash flow included $187 million of proceeds from sale of assets, against none a year earlier. Source
• Long-term debt rose slightly: Long-term debt was $27,859 million at March 31, 2026, against $27,758 million at December 31, 2025. Source

Tax and non-GAAP measures

• Tax benefit lowered effective rate: A net $254 million income tax benefit from releasing various foreign valuation allowances was partly offset by $74 million of other discrete tax items. Source
• Acquisition amortization excluded: Amortization of acquisition-related intangible assets of $311 million was excluded from adjusted results, against $331 million a year earlier. Source
• Adjusted net income declined: Adjusted net income was $958 million, against $1,210 million. GAAP net income attributable to Fiserv was $571 million, against $851 million. Source

Transformation program spending

• Transformation expenses reached $142 million: One Fiserv transformation program expenses were $142 million, including $41 million of incremental compensation for retention awards and restricted stock units. Source
• Transformation cash payments $95 million: Transformation program payments of $95 million were added back when computing free cash flow. Source
• Program described as AI-enabled: The program is a multi-year transformation initiative on operational excellence enabled by artificial intelligence, and its costs are excluded from adjusted results. Source

People costs and leadership transition

• Severance costs rose to $73 million: Severance costs were $73 million, against $15 million a year earlier. Source
• Severance and integration cash paid lower: Cash payments for severance, merger and integration were $46 million, against $69 million a year earlier. Source
• Retention awards in integration costs: Merger and integration costs included $14 million of retention cash awards and $12 million of third-party professional service fees in the first quarter of 2026. Source
• CEO transition cost absent this quarter: The prior-year quarter included $52 million of incremental executive compensation tied to the CEO transition; no such item appears in the first quarter of 2026. Source

Coming up, as management said on 5 May 2026

• Investor Day on May 14: Investor Day on May 14 will give more detail on strategy and medium-term financial plans. Source

Risks management discussed

• Operational: Management said significant work remains on the One Fiserv Action Plan. Source

Earlier plans management reported on

• Met: Management said first quarter results were in line with the expectations it shared in February. Source
• Not stated: Management said it remains confident in its full-year guidance and cited progress on productivity initiatives. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.