Fiserv Inc. (FISV) had a rough Thursday morning. The payments technology company reported second-quarter results that left investors wanting more, and then it went ahead and lowered its full-year outlook. The stock dropped more than 10% in premarket trading.
Here's the breakdown: Adjusted earnings came in at $1.84 per share, missing the $1.91 analysts were looking for. Revenue, on the other hand, hit $5.29 billion, beating the $5.04 billion consensus. But that revenue was down 4% from the same quarter last year. GAAP earnings per share fell 37% year over year to $1.17, and adjusted EPS declined 26%.
The revenue picture isn't pretty. Organic revenue decreased 5% during the quarter, with Merchant Solutions down 1% and Financial Solutions down 8%. Adjusted operating margin narrowed to 31.8% from 39.6% a year earlier. Free cash flow for the first six months dropped to $1.36 billion from $1.55 billion.
Cash and cash equivalents stood at $627 million as of June 30. Net cash from operating activities for the first half of 2026 was $2.08 billion, down from $2.31 billion in the same period last year.
CEO Takis Georgakopoulos tried to put a positive spin on things. "Our business continues to be supported by volume growth and strong positions in attractive markets," he said. He added that the company is improving execution, enhancing its technology, and remains committed to long-term shareholder value.
But the guidance cut is the real story. Fiserv now expects full-year 2026 adjusted EPS of $7.20 to $7.40, down from its prior forecast of $8.00 to $8.30. That's also below the analyst consensus of $8.10. The company also revised its organic revenue outlook to a decline of 1% to flat for the year.
CFO Paul Todd noted that growth in volumes, transactions, and accounts, along with recurring revenue growth, continued to support the business in the second quarter. However, he acknowledged the reduced 2026 outlook while reiterating the company's expected medium-term growth rates.
On the capital allocation front, Fiserv repurchased 1.7 million shares for $100 million during the quarter. It also completed a €1 billion senior notes offering and retired $1.41 billion of outstanding debt through a tender offer and open-market repurchases. The company finished forming its previously announced MoneyPass Group joint venture, in which it retains a minority stake.
As of Thursday premarket, Fiserv shares were down 10.81% at $48.26.
