Q2 2026 Fiserv Inc Earnings Call Transcript
Key Points
- Fiserv Inc (FISV) generated strong free cash flow of $1.1 billion in Q2, with a conversion rate of 112%, reflecting efficient working capital management.
- Clover GPV grew 9% (11% excluding gateway conversion), and Clover revenue grew 13% excluding anticipation and nonrecurring revenue, demonstrating robust underlying performance.
- The company secured significant new client wins, including Flagstar Bank selecting Finxact for core modernization and Western Alliance Bank going live with Clover, expanding its bank partnerships.
- Fiserv Inc (FISV) is making strategic investments in technology, cybersecurity, and infrastructure, which are expected to enhance platform stability and position the company for growth in 2027 and beyond.
- The company is actively reviewing its portfolio and has already divested non-core businesses (student loan servicing, managed ATM, and unprofitable SMB/fuel segments in India), signaling a focus on streamlining operations and maximizing shareholder value.
- Fiserv Inc (FISV) lowered its full-year 2026 organic revenue guidance to a range of -1% to flat, down from prior expectations, due to weaker macro conditions in Argentina and slower client implementation timelines.
- The company faces a significant headwind from Argentina's anticipation business, which negatively impacted Q2 revenue by 90 basis points and operating margin by 60 basis points, with continued pressure expected in the second half.
- Merchant hardware revenue is experiencing incremental headwinds due to elevated sales in prior years, leading to a reduction in expected Clover revenue growth to mid-single digits for 2026.
- Financial Solutions segment revenue declined 8% organically in Q2, impacted by higher nonrecurring revenue in the prior year and ongoing attrition in the banking business, with core counts down 3% year-over-year.
- The company's adjusted operating margin guidance was lowered to 31%-31.5% for 2026, reflecting increased technology investments, Argentina impacts, and lower revenue, with a 150-200 basis point negative impact from revenue shortfalls.
Welcome to the Fiserv second-quarter 2026 earnings conference call. (Operator Instructions) As a reminder, today's call is being recorded.
At this time, I would like to turn the call over to Walter Pritchard, Senior Vice President and Head of Investor Relations at Fiserv.
Thank you, and good morning. With me on the call today are Takis Georgakopoulos, 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 on this call along with the reconciliation of those measures to the nearest applicable GAAP measures.
Unless otherwise noted, performance references are on a year-over-year basis. Our remarks today will include forward-looking statements about, among other matters, expected operating and financial results and strategic initiatives. Forward-looking
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