FISV US S&P 500Russell 1000 Earnings call · transcribed from the recording
Fiserv (FISV) · Q3 2026 results and valuation
Share price: $63.90 · 2026-11-11
Fiserv provides payment and financial services technology solutions, including account processing, merchant acquiring, and point-of-sale platforms. The company serves merchants, banks, credit unions, and other financial institutions across the United States, Canada, and international markets in Europe, the Middle East, Africa, Latin America, and Asia Pacific. Source: 10-K annual report (2026-02-19)
Results Q3 2026 vs Q2 2026 · previous quarter · published 3 Nov 2026 and 6 Aug 2026
Net income turned to a loss from a profit last quarter. Management sounded restrained, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
Turned loss
Net income vs Q2 2026
Outlook given
Net income -5.94B vs 627.0M
Revenue −1.8%
2 · How management spoke
Restrained
Less upbeat than 69% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Guidance
As the impact of prior year non-recurring revenue abates, Fiserv expects Clover to return to double-digit revenue growth for the fourth quarter.
Valuation
Is Fiserv undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 6.1% growth a year (3-year revenue growth), the model's fair value is $116.40 a share — the stock trades 45% below it. Today's price assumes −2.2% growth a year.
Current price
$63.90
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
-2.2% for 10 yrs
Fair value / share
$116.40
Buy below
$87.30
Price vs fair value
Undervalued 45%
Price vs buy-below price
Undervalued 27%
Read between the lines
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Key theme
Trend towards a 37% adjusted operating margin over the long term
Source quote
“This gives us confidence that we can trend towards a 37% adjusted operating margin over the long term. ...a series of deep dives in areas such as operations and technology and strategic partnerships with a number of AI leaders, we have now identified additional opportunities within Project Elevate, raising our savings targets to $1 billion. Third, through our portfolio review, we've identified a number of businesses and activities that are not core to our go-forward strategy and where we may pursue alternative ownership arrangements.”
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Key theme
Financial Solutions is already delivering organic revenue growth, and Fiserv is on track for Merchant and the overall company to return to growth…
Source quote
“Financial Solutions is already delivering organic revenue growth, and we are on track for Merchant and the overall company to return to growth... In Q3, organic revenue stabilized and was flat year over year in line with our expectations. Each of our businesses is gaining momentum as we close 2026.”
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Guidance
Fiserv expects capital expenditures to be high single-digit percent of adjusted revenues and an approximately 90% free cash flow conversion ratio, both unchanged from its prior guidance.
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Figure
Based on the review that I announced during the second quarter call, a series of deep dives in areas...
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“In merchant, Clover continues to grow steadily with a GPV growth of around 10%, while Commerce Hub is benefiting from momentum in e-commerce and platforms with new clients and transaction...”
“Beginning on slide five, total company Q3 adjusted revenue was $4.85 billion, a 1% decrease compared to the prior year and within our guidance range of low single-digit percent decline.”
“Financial Solutions is already delivering organic revenue growth, and we are on track for Merchant and the overall company to return to growth in the fourth quarter in line with...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 5.20B | 5.29B | −1.8% | 5.26B | −1.3% |
| Operating income | -5.49B | 1.01B | Turned loss | 1.44B | Turned loss |
| Net income | -5.94B | 627.0M | Turned loss | 792.0M | Turned loss |
| EPS | -11.17 | 1.17 | Turned loss | 1.46 | Turned loss |
| P/E | 12-mo loss | 9.4 | — | 19.9 | — |
Topics
Most discussed now
- As Fiserv strengthens its business development team, it is becoming increasingly confident that the banking segment will return to the...
- As Fiserv highlighted in Q2, small business revenue was impacted by both lower Argentina anticipation and hardware sales as compared...
- Managed ATM business divestitures were a roughly 100 basis point headwind to Q3 adjusted revenue.
- Yeah maybe I can start with a second one and then for the first one so thinking about Fiserv's two...
- It's going to start with relatively simple use cases that are going to get more complex and more autonomous over...
Faded since Q2 2026
- Fading I also understand the responsibility that comes with operating as a critical infrastructure provider from stability and reliability to…
- Fading As an engineer by trade and training, I'm energized by solving complex problems and technology has always been central to...
- Fading While its Q2 results were in line with its expectations, Fiserv had 2 incremental headwinds to revenue growth that negatively...
- Fading Fiserv did a very kind of detailed portfolio review of its business.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
Ms. Seshadri was appointed as a non-employee director, while Henrique De Castro announced he will not stand for re-election at the 2027 annual shareholder meeting.
- Director or officer change · SEC 8-K
Fiserv, Inc. filed a Form 8-K on September 16, 2026, regarding a change in directors or officers.
- Results of operations · SEC 8-K
Fiserv reported GAAP revenue of $5.29 billion for the second quarter of 2026, a decrease of 4% compared to the same period in 2025.
- Director or officer change; Regulation FD disclosure · SEC 8-K
Fiserv, Inc. filed a Form 8-K on July 7, 2026, regarding a change in directors or officers and Regulation FD disclosure.
- Material agreement; New financial obligation; Other events · SEC 8-K
The company filed an 8-K report regarding the registration of Notes under the Securities Act of 1933, referencing a Registration Statement filed on February 22, 2024, and amended on April 24, 2025.
- Material agreement · SEC 8-K
Fiserv, Inc. filed a Form 8-K on June 16, 2026, regarding material agreements involving various senior notes due between 2027 and 2036.
- Regulation FD disclosure · SEC 8-K
Fiserv announced tender offers to purchase 5.150% Senior Notes due 2027 with a principal of $750,000,000 and 4.400% Senior Notes due 2049 with a principal of $2,000,000,000.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-11.
Cash & runway
Cash & equivalents
$627.0M
2026-06-30
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: -3.3% YoY, -0.3% QoQ.
| Quarter | Shares |
|---|---|
| Q3 2024 | 573.7M |
| Q1 2025 | 561.3M |
| Q2 2025 | 550.8M |
| Q3 2025 | 540.2M |
| Q1 2026 | 534.3M |
| Q2 2026 | 532.6M |
Shares outstanding: 531.8M (2026-07-31)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 88 filings; 50 filings parsed.
Sold by insiders
0 shares
0 transactions
Bought by insiders
44.8K shares
$2.2M · 7 transactions
Net direction
net buying
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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second half of the year
updated guidance for organic revenue and adjusted operating margins
Source quote
“Second, while maintaining the growth rates in our medium-term outlook, we are updating our guidance for the second half of the year, which results in full year guidance for organic revenue to a range of minus 1% to flat and adjusted operating margins to a range of 31% to 31.5%.”
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the second half of the year
investment into technology infrastructure
Source quote
“To continue to advance these priorities, we have chosen to invest over $100 million incrementally into our technology infrastructure in the second half of the year, especially in the financial solutions business.”
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the coming quarters
announcing exciting new large deals
Source quote
“We believe this positions us well in the global enterprise wallet against the best competitors in the space, and we look forward to announcing exciting new large deals in the coming quarters.”
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in 2027
converting the existing TD client portfolio to Fiserv
Source quote
“Our efforts will now shift to converting the existing TD client portfolio to Fiserv in 2027, extending our capabilities to over 80,000 existing TD merchant clients.”
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in the second half of the year
expanding this offering into new channels
Source quote
“Lastly, after launching Clover PracticePay, we continue to see success signing up new merchants and have about 20% higher average volumes than our average SMB merchant, and we are expanding this offering into new channels in the second half of the year.”