Fiserv Reports Significant Q1 EPS Decline Amidst Revenue Drop, Affirms Full-Year Guidance
FISV is trading near its 52-week low of $52.91 (13% above the low).
Summary
Fiserv reported a significant decline in Q1 revenue and EPS, though results were in line with expectations, and the company affirmed its full-year guidance.
Key Events · Earnings and Guidance · FISV
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Q1 Revenue Decline
GAAP revenue decreased 2% to $5.03 billion, with organic revenue declining 4% compared to the prior year period.
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Significant EPS Drop
GAAP earnings per share fell 29% to $1.07, and adjusted earnings per share decreased 16% to $1.79 for the first quarter.
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Operating Margin Contraction
GAAP operating margin declined to 18.3% in Q1 2026 from 27.2% in Q1 2025, reflecting operational pressures.
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Full-Year Guidance Affirmed
Despite weak Q1 results, the company affirmed its 2026 organic revenue growth outlook of 1% to 3% and adjusted EPS outlook of $8.00 to $8.30.
Analysis · FISV · Trade & Services
Fiserv reported a substantial decline in first-quarter GAAP and adjusted EPS, alongside a decrease in both GAAP and organic revenue, and a contraction in operating margins. These weak results, while stated to be "in line with expectations," are notable given the company's existing challenges, including ongoing SEC and U.S. Attorney investigations and a negative credit outlook. The affirmation of full-year guidance for organic revenue growth and adjusted EPS provides a crucial counterpoint, suggesting management believes the Q1 performance does not jeopardize its annual targets. Investors will likely scrutinize the company's ability to achieve these targets following such a weak start to the year, especially with an Investor Day scheduled for May 14th.
At the time of this filing, FISV was trading at $59.55 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $33.6B. The 52-week trading range was $52.91 to $191.91. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.