10-QPeriod: Q2 FY2026

FISERV INC Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 7, 2026For Securities:FISV

Summary

Fiserv Inc. reported a decrease in total revenue for the second quarter and the first six months of 2026 compared to the same periods in 2025. This decline was primarily driven by lower product revenue and a decrease in anticipation revenue in Argentina due to lower inflation and interest rates, as well as reduced hardware and data analytics sales. Despite the revenue decline, the company successfully extinguished a significant portion of its debt, resulting in a substantial pre-tax gain on early debt extinguishment in the second quarter of 2026. The company also continues to execute its 'One Fiserv' transformation plan, which involves investments in personnel, technology, and operational efficiencies, though these initiatives have contributed to higher operating expenses. Financially, the company saw a significant drop in operating income and net income compared to the prior year. This was influenced by increased operating expenses related to the "One Fiserv" transformation, higher personnel costs, and reduced high-margin license and data analytics revenue. The company's liquidity remains robust, supported by operating cash flows and available credit facilities, despite the decrease in cash from operations. Fiserv also completed several strategic acquisitions in 2025, integrating them into its Merchant and Financial segments, and is pursuing a divestiture of its student loan servicing business.

Key Highlights

  • 1Total revenue declined by 4% in Q2 2026 and 3% year-to-date compared to 2025, largely due to lower product revenue and decreased revenue from Argentina.
  • 2A significant pre-tax gain of $154 million was recognized on early debt extinguishment in Q2 2026 through tender offers and repurchases.
  • 3Operating income decreased substantially by 40% in Q2 2026 and 37% year-to-date, impacted by increased operating expenses and lower revenue.
  • 4Net income attributable to Fiserv, Inc. declined by 39% in Q2 2026 and 36% year-to-date, reflecting lower operating performance.
  • 5The company is actively executing its 'One Fiserv' transformation plan, which involves strategic investments but also contributes to higher operating expenses.
  • 6Cash provided by operating activities decreased by 10% year-to-date, primarily due to lower profitability.
  • 7Fiserv completed multiple acquisitions in 2025, integrating them into its business segments, and plans to divest its student loan servicing business.

Frequently Asked Questions

Fiserv's revenue decrease is primarily driven by lower product revenue and a decline in anticipation revenue in Argentina due to reduced inflation and interest rates. Additionally, lower hardware revenue and reduced sales of high-margin data and analytics have contributed to the decline.

Profitability has been significantly impacted, with a 40% decrease in operating income and a 39% decrease in net income attributable to Fiserv, Inc. in the second quarter of 2026 compared to the prior year. This is attributed to increased operating expenses related to the 'One Fiserv' transformation, higher personnel costs, and a reduction in high-margin revenue streams.

Fiserv recognized a substantial pre-tax gain of $154 million on early debt extinguishment in the second quarter of 2026. This resulted from successful tender offers and open market repurchases of its senior notes, which demonstrates the company's proactive debt management strategy.

The 'One Fiserv' action plan is a strategic initiative aimed at enhancing client focus, driving innovation, and improving operational efficiency through investments in technology, AI, and process standardization. While intended to strengthen the company long-term, it has led to increased operating expenses, particularly in personnel and technology infrastructure, impacting short-term profitability.