10-QPeriod: Q1 FY2026

FISERV INC Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 6, 2026For Securities:FISV

Summary

Fiserv, Inc. reported a decrease in total revenue for the first quarter of 2026 compared to the prior year period, primarily driven by a decline in product revenue and certain data and analytics sales. While the Merchant segment remained flat, the Financial segment experienced a revenue decrease. Expenses saw a significant increase, impacting operating income which declined by 34% year-over-year. This rise in expenses is attributed to costs associated with the "One Fiserv" transformation program, increased personnel costs, and higher data processing expenses. Despite these challenges, the company's effective income tax rate was favorably impacted by a substantial benefit from releasing a valuation allowance on foreign net operating loss carryforwards. The company's liquidity remains solid, supported by operating cash flow and available credit facilities. Acquisitions continue to be a focus, with several integrations completed in the previous year.

Financial Highlights

49 data points
Beta

Revenue

$5.03B

Net Income

$571.00M

11.4% Net Margin

EPS (Diluted)

$1.07

Total Assets

$80.55B

Cash & Equivalents

$829.00M

Free Cash Flow

$141.00M

Financial Statements
Beta
Revenue$5.03B
SG&A Expenses$1.89B
Operating Expenses$4.11B
Operating Income$918.00M
Interest Expense$361.00M
Net Income$571.00M
EPS (Basic)$1.07
EPS (Diluted)$1.07
Shares Outstanding (Basic)534.30M
Shares Outstanding (Diluted)535.40M

Key Highlights

  • 1Total revenue decreased by 2% year-over-year to $5.03 billion, impacted by lower product revenue.
  • 2Operating income declined significantly by 34% to $918 million, with operating margin contracting to 18.3% from 27.2%.
  • 3Total expenses increased by 10% to $4.11 billion, driven by "One Fiserv" transformation costs, higher personnel, and data processing expenses.
  • 4The effective income tax rate saw a significant reduction to 4.0% due to a $293 million benefit from releasing a valuation allowance on foreign net operating loss carryforwards.
  • 5The company completed several acquisitions in the prior year, including StoneCastle, CCV, and Payfare, integrating them into its Financial and Merchant segments.
  • 6Diluted earnings per share decreased to $1.07 from $1.51 year-over-year.

Frequently Asked Questions

Fiserv's total revenue decreased by 2% to $5.03 billion in the first quarter of 2026 compared to the same period in 2025. This decline was primarily attributed to a decrease in product revenue, which fell by 12%, and lower data and analytics sales, particularly impacting the Financial segment.

Operating income saw a substantial decline of 34% to $918 million. This was driven by a 10% increase in total expenses, which outpaced revenue growth. Key factors contributing to higher expenses include costs associated with the 'One Fiserv' transformation program, increased personnel costs, and higher data processing expenses.

The effective income tax rate for the first quarter of 2026 was notably low at 4.0%. This was primarily due to a significant $293 million benefit realized from releasing a valuation allowance against certain foreign net operating loss carryforwards that were deemed realizable. This benefit was partially offset by other tax-related items.

Fiserv continued to integrate acquisitions made in the prior year, such as StoneCastle, CCV, and Payfare, into its reporting segments. While these acquisitions contribute to the company's strategy, the financial impact in this quarter is reflected in the overall revenue and expense lines, with specific mention of amortization of acquisition-related intangibles and integration costs within operating expenses.