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Sometimes the market just wants to hear that the cost cuts are getting deeper and the buybacks are coming back. Fiserv Inc. (FISV) delivered both on Tuesday, and the stock jumped nearly 10% in premarket trading.
The payments technology company reported better-than-expected third-quarter results, reaffirmed its full-year outlook, doubled its cost-savings target and announced plans to resume share repurchases. That is a lot of good news for one press release.
Fiserv reported adjusted earnings of $1.75 per share, beating the analyst estimate of $1.72. However, earnings fell 14% from $2.04 a year earlier.
Revenue declined 1% year over year to $5.196 billion, topping the $4.845 billion estimate.
Adjusted revenue fell 1% to $4.852 billion, while organic revenue remained flat.
Merchant Solutions organic revenue declined 2%, while Financial Solutions returned to growth with a 2% increase.
For the first nine months of 2026, organic revenue fell 3%.
Fiserv recorded a $6.45 billion noncash goodwill impairment charge following a sustained decline in its share price and market capitalization.
The charge contributed to a GAAP loss of $11.17 per share.
Adjusted operating margin narrowed to 31.2% from 37% a year earlier.
Free cash flow totaled $2.04 billion in the first nine months, down from $2.88 billion a year earlier.
Long-term debt declined to $25.81 billion as of Sept. 30, from $27.76 billion at the end of 2025.
Fiserv's Clover payment platform recorded 11% growth in gross payment volume, excluding a previously disclosed gateway conversion. Clover processing revenue increased 12%.
Meanwhile, net customer attrition in core banking improved more than 25% year to date.
CEO Takis Georgakopoulos said the company is making progress in reducing banking customer losses, securing major client wins and strengthening Clover's underlying growth.
Fiserv also completed the sale of its student loan servicing business and formed MoneyPass Group, a joint venture in which it retains a minority stake.
Fiserv raised its Project Elevate savings target to $1 billion from $500 million after identifying additional operating efficiencies.
The company reaffirmed its fiscal 2026 adjusted earnings forecast of $7.20 to $7.40 per share. The midpoint of $7.30 is above the $7.25 analyst estimate.
Fiserv also maintained its organic revenue growth outlook of negative 1% to flat and expects adjusted operating margins of 31% to 31.5%.
Management expects adjusted and organic revenue to return to growth in the fourth quarter.
CFO Paul Todd said the company's progress allows it to resume share repurchases earlier than expected, with $500 million planned for the fourth quarter.
FISV Price Action: Fiserv shares were up 9.96% at $57.10 during premarket trading on Tuesday, according to market data.
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