One Fiserv Transformation Costs
Costs associated with the One Fiserv transformation program added approximately 350 basis points to total expenses as a percentage of revenue in Q2, driving the operating margin down to 19.2%.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Fiserv's second quarter of fiscal 2026 saw revenue and earnings decline as lower high-margin data and analytics sales and license revenue weighed on results, while the One Fiserv transformation program drove costs higher. The Merchant segment was also hit by a $45 million drop in Argentina anticipation revenue, but Clover volume growth provided a partial offset. Operating margin contracted sharply as expenses as a percentage of revenue jumped more than 11 percentage points, though a gain on early debt extinguishment and a sale-leaseback gain cushioned the bottom line.
Revenue
$5.29B
-4.06% YoY
EPS (Diluted)
$1.17
-37.10% YoY
Operating Income
$1.01B
-40.15% YoY
Source: SEC XBRL
Fiserv (FISV) reported Q2 FY2026 revenue of $5.29B, down 4.1% year over year. Operating margin was 19.2%, down 11.5 points from 30.7% a year earlier. FISV's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.84 | 1.95 | Miss -5.6% |
| Mar 2026 | 1.79 | 1.60 | Beat +11.7% |
| Dec 2025 | 1.99 | 1.94 | Beat +2.8% |
| Sep 2025 | 2.04 | 2.70 | Miss -24.3% |
Adjusted (non-GAAP) EPS of $1.84 versus the $1.95 analyst consensus — a -5.6% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.17.
2 reported segments · SEC XBRL
Segment revenue totals $4.96B; with $329M of reconciling items (corporate, unallocated and eliminations) it ties to the $5.29B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure FISV itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Costs associated with the One Fiserv transformation program added approximately 350 basis points to total expenses as a percentage of revenue in Q2, driving the operating margin down to 19.2%.
Source: 10-Q Item 2 MD&A
Both segments saw decreases in data and analytics sales and license revenue, which are typically high-margin, contributing to the overall margin compression.
Source: 10-Q Item 2 MD&A
Anticipation revenue in Argentina fell by $45 million due to lower inflation and interest rates, dragging on Merchant segment performance.
Source: 10-Q Item 2 MD&A
A net gain of $83 million on the sale-leaseback of certain facilities in the first six months of 2026 partially offset expense growth.
Source: 10-Q Item 2 MD&A
A $154 million gain on early debt extinguishment was recognized in Q2, reducing interest expense and boosting net income.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
The company's operating margin nearly halved year-over-year as the One Fiserv transformation program and elevated personnel and technology costs pressured profitability. If these costs do not lead to expected efficiencies, margins could remain under pressure.
Source: 10-Q Financial Statements (XBRL)
A significant portion of the earnings decline stemmed from lower data and analytics and license sales, which carry high margins. Sustained weakness in these areas could disproportionately affect future profitability.
Source: 10-Q Financial Statements (XBRL)
The One Fiserv action plan involves substantial restructuring and technology investments with no immediate revenue uplift. Failure to achieve anticipated savings or client growth could leave the company with elevated fixed costs.
Source: 10-Q Financial Statements (XBRL)
The $45 million drop in anticipation revenue from Argentina illustrates vulnerability to macroeconomic instability, such as inflation and interest rate swings, in emerging markets where the company operates.
Source: 10-Q Financial Statements (XBRL)
Fiserv completed several acquisitions in 2025 and early 2026. Integrating these businesses carries operational and financial risks, including potential goodwill impairment if expected synergies do not materialize.
Source: 10-Q Financial Statements (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 5.29 $B | 5.52 $B | -4.06% |
Operating Income $B | 1.02 $B | 1.70 $B | -40.15% |
Net Income $B | 0.63 $B | 1.03 $B | -38.89% |
EPS (Basic) $ | 1.18 $ | 1.86 $ | -36.56% |
EPS (Diluted) $ | 1.17 $ | 1.86 $ | -37.10% |
SG&A Expense $B | 1.89 $B | 1.71 $B | +10.34% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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%.
Fiserv delivered solid FY2025 results with revenue growing 3.6% to $21.2B and net income surging 11.1% to $3.5B, though operating margin compressed slightly and cash balances declined materially.
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