Total Company Revenue and EPS
Q1 adjusted revenue of $4.68B, only -2.4% YoY and in line with guidance; Q1 adjusted EPS of $1.79. Company reaffirmed 2026 adjusted EPS guidance of $8.00–$8.30.
Fiserv
· FISV
May 5th, 2026
Summary
- Earnings Call Date:
- 2026-05-05
- Change Since:
- -17.02%
Earnings Call Sentiment
NeutralThe call presented a balanced picture: the company reported modest top‑line declines and meaningful near‑term margin pressure driven by nonrecurring comparables, segment declines (notably Processing and Banking), and continued elevated attrition in core banking. Offsetting these near‑term financial headwinds are clear operational improvements (faster issue resolution, fewer major incidents), strong product traction (Finxact, Clover growth, CommerceHub), strategic partnerships, AI‑led efficiency initiatives (Project Elevate) and disciplined capital actions. Management reiterated modest full‑year revenue growth guidance (1%–3%) and mid‑single‑digit Merchant growth while expecting Financial Solutions to be flat to slightly down, and they emphasized that the second half of 2026 and 2027 should show clearer financial benefits from current investments.
Company Guidance
The company reiterated full‑year 2026 guidance calling for organic revenue growth of 1%–3% (adjusted revenue growth 1%–3%), with Merchant Solutions growing mid‑single digits and Financial Solutions flat to slightly down, expecting Q2 to be the trough (FS down at the high end of mid‑single digits in Q2); adjusted EPS of $8.00–$8.30 on ~530 million weighted average shares; full‑year adjusted operating margin of ~34% (H1 ~31%–32%, H2 ~35%–36% with Q4 the high point); capital expenditures roughly flat with 2025; free cash flow conversion ~90% of adjusted net income; and year‑end gross debt/adjusted EBITDA ~3.0x (Q1 finished below 3.2x). For context, Q1 results that informed the outlook included adjusted revenue $4.68B (‑2.4% YoY), adjusted operating income $1.4B (29.7% margin), organic revenue down 3.6%, adjusted EPS $1.79 (Q1 adjusted tax rate 11% with full‑year guidance 19%–19.5%), free cash flow $259M, and 3.3 million shares repurchased for ≈$200M.
Operational Efficiency & Client Service Improvements
Time to resolve client inquiries improved by 27% YoY and high‑impact client incidents declined nearly 60% YoY, indicating measurable service recovery.
Clover Momentum and VAS Growth
Clover revenue grew 6% in Q1 (would be mid‑teens excluding prior nonrecurring items); Clover GPV growth of 10%–15% (ex gateway conversion guidance), Clover processing revenue +10% and Clover VAS represented 27% of Clover revenue, up 18% YoY.
Finxact and Product Recognition
Finxact accounts and positions grew over 70% YoY and was named Best SaaS for FinTech (2026), demonstrating strong product traction in modern core banking.
CommerceHub and Enterprise Wins
CommerceHub transaction growth nearly 200% in Q1; multiple enterprise merchant wins and major go‑lives (omnichannel for petro customers, built rewards, cross‑border remittance).
Strategic Partnerships, Distribution & New Verticals
Signed 27 new bank Merchant Referral Partners, largest agent bank partnership with Western Alliance (> $90B AUM), launched two verticals for Clover (PracticePay and Professional Services) with strong early results (healthcare outlets showing double‑digit higher annualized GPV per outlet; Professional Services new outlets 20%+ attach).
Capital Discipline and Balance Sheet
Repurchased 3.3M shares for ~$200M in Q1; gross debt to adjusted EBITDA below 3.2x at quarter end with expectation to finish year around ~3x; free cash flow conversion guidance ~90% of adjusted net income for 2026.
Project Elevate and AI Initiatives
Project Elevate (AI‑centered efficiency program) identified hundreds of revenue/expense/productivity opportunities; early AI pilots in client portals, call centers and development show material efficiency improvements.
Operator
Welcome to the Fiserv First Quarter 2026 Earnings Conference Call. [Operator Instructions]. As a reminder, today's call is being recorded. At this time, I will turn the call over to Walter Pritchard, Senior Vice President and Head of Investor Relations at Fiserv.
Walter Pritchard
Thank you, and good morning. With me on the call today are Mike Lyons, our Chief Executive Officer, and Paul Todd, our Chief Financial Officer. Our earnings release and supplemental materials for the quarter are available on the Investor Relations section of fiserv.com. Please refer to these materials for an explanation of the non-GAAP financial measures discussed in this call, along with the reconciliation of those measures to the nearest applicable GAAP measures. Unless otherwise noted, performance references are year-over-year comparisons. Our remarks today will include forward-looking statements about, among other matters, expected operating and financial results and strategic initiatives. Forward-looking statements may differ materially from actual results and are subject to a number of risks and uncertainties. You should refer to our earnings release for a discussion of these risk factors.
And now I'll turn the call over to Mike.
Michael Lyons
Thank you, Walter, and good morning, everyone. As we began the year, we were firmly in execution mode, and our first quarter results were in line with the expectations we shared with you in February. Our teams continued to be laser-focused on executing against the One Fiserv action plan, and while there is still significant work to do, we are taking the right actions, with the right s...
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