AI Takeaway
Fiserv reported a challenging Q1 FY2026 with revenue declining 2.0% YoY to $5.03B and operating income falling 34.2% to $918M, driven by a significant 12.1% surge in SG&A expenses that compressed operating margins from 27.2% to 18.3%.
Revenue
$5.03B
-2.01% YoY
EPS (Basic)
$1.07
-29.61% YoY
Operating Income
$918M
-34.19% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue fell 2.0% YoY to $5.03B in Q1 FY2026 from $5.13B in the prior-year period, signaling softness in top-line growth that may reflect competitive pressures or business mix shifts within the payments and fintech segment.
Source: Source: 10-Q Income Statement
Operating income dropped 34.2% YoY to $918M from $1.40B, with operating margin contracting approximately 890 basis points to 18.3% from 27.2%, primarily driven by a $203M (12.1%) increase in SG&A expenses to $1.89B.
Source: Source: 10-Q Income Statement
Net income fell 32.9% YoY to $571M, with diluted EPS declining 29.1% to $1.07 from $1.51, reflecting the significant margin compression flowing through to the bottom line.
Source: Source: 10-Q Income Statement
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Upgrade to unlockSG&A expenses surged 12.1% YoY to $1.89B in Q1 FY2026, significantly outpacing revenue trends and compressing operating margins by nearly 900 basis points. If this cost trajectory continues without corresponding revenue growth, profitability could deteriorate further in subsequent quarters.
Source: Source: 10-Q Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.79 versus the $1.60 analyst consensus — a +11.7% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $5.03B | $5.13B | -2.01% |
Operating Income | $918M | $1.4B | -34.19% |
Net Income | $571M | $851M | -32.90% |
EPS (Basic) | $1.07 | $1.52 | -29.61% |
EPS (Diluted) | $1.07 | $1.51 | -29.14% |
SG&A Expense | $1.89B | $1.68B | +12.07% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $80.55B | $80.4B | +0.18% |
Current Assets | $24.78B | $25.59B | -3.16% |
Total Liabilities | $54.33B | $53.88B | +0.83% |
Current Liabilities | $23.42B | $23.29B | +0.54% |
Stockholders' Equity | $26.2B | $25.88B | +1.22% |
Cash & Equivalents | $829M | $1.18B | -29.57% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $599M | $648M | -7.56% |
Investing Cash Flow | $-201M | $-925M | +78.27% |
Financing Cash Flow | $-923M | $627M | -247.21% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 18.3% | 27.2% | -8.93% |
Net Margin | 11.4% | — | — |
ROE | 2.2% | — | — |
ROA | 0.7% | — | — |
Current Ratio | $1.058 | — | — |
Debt to Equity | $2.073 | — | — |
Other companies in Transaction & Payment Processing Services
Fiserv reported a difficult Q1 FY2026, with revenue declining 2.0% YoY to $5.03B and net income falling 32.9% to $571M. Diluted EPS came in at $1.07, down 29.1% from $1.51 in Q1 FY2025, driven by a sharp increase in SG&A expenses.
Fiserv's operating margin fell approximately 890 basis points to 18.3% from 27.2% in Q1 FY2025, primarily because SG&A expenses surged 12.1% YoY to $1.89B while revenue declined 2.0%. This cost-revenue mismatch caused operating income to collapse 34.2% to $918M.
Fiserv's near-term liquidity is tight, with a current ratio of just 1.06x and cash declining 29.6% YoY to $829M. The company carries a high debt-to-equity ratio of 2.07x with total liabilities of $54.3B, though total assets of $80.5B provide a broad balance sheet foundation.
Based on the financial data, key risks include escalating SG&A costs compressing margins, declining cash reserves tightening liquidity, and elevated leverage with a 2.07x debt-to-equity ratio. Revenue contraction of 2.0% YoY also raises concerns about organic growth sustainability in Fiserv's core businesses.
No, Fiserv's revenue declined 2.0% YoY in Q1 FY2026, falling to $5.03B from $5.13B in Q1 FY2025. This top-line contraction, combined with rising costs, resulted in a significant compression of both operating and net income margins.