Fiserv Posts $11.17 Q3 Loss Per Share on $6.45 Billion Goodwill Impairment, Doubles Savings Target to $1 Billion

Fiserv swung to a third-quarter loss of $11.17 per share after a $6.45 billion non-cash goodwill impairment, but adjusted EPS of $1.75 kept the payments company on track to reaffirm its 2026 outlook, double its Project Elevate savings target to $1 billion and restart buybacks.

Revenue slipped 1.3% to $5.20 billion from $5.26 billion a year earlier, and organic revenue was flat, according to the earnings release Fiserv filed with an 8-K on Tuesday. Adjusted revenue fell 1.4% to $4.85 billion. Adjusted EPS dropped 14.2% from $2.04.

The company posted a net loss attributable to Fiserv of $5.94 billion, compared with net income of $792 million in the third quarter of 2025. Fiserv said the impairment followed a triggering event tied to sustained declines in its share price and market capitalization.

"Our team is executing with urgency, and we are seeing meaningful progress," CEO Takis Georgakopoulos said in the release, pointing to lower banking attrition, ramping client wins and "consistent underlying growth" at Clover.

Margins under pressure

Adjusted operating margin narrowed to 31.2% from 37.0%, and adjusted operating income fell 17.0% to $1.51 billion.

Merchant Solutions revenue declined 2.5% to $2.52 billion, and its operating margin contracted to 28.7% from 37.2%. Organic revenue in the segment fell 2%.

Financial Solutions revenue was flat at $2.33 billion, though organic revenue there grew 2%, which CFO Paul Todd called "a return to organic revenue growth in Financial Solutions." The segment's operating margin eased to 38.1% from 42.5%.

Outlook reaffirmed, savings target doubled

Fiserv still expects 2026 organic revenue of a 1% decline to flat and adjusted EPS of $7.20 to $7.40.

It raised projected savings under Project Elevate to $1 billion from its prior estimate of $500 million, following a portfolio review that identified more operational efficiencies, the company said.

"Our growing confidence also allows us to resume share repurchases earlier than anticipated, with $500 million planned in the fourth quarter," Todd said. The buyback will come under Fiserv's existing authorization.

Portfolio moves

During the quarter, Fiserv completed the sale of its student loan servicing business and formed MoneyPass Group, a joint venture holding its MoneyPass Network, ATM Managed Services and Cash Intelligence businesses, in which it keeps a minority stake. The release lists a combined net gain of $100 million from those two transactions.

Free cash flow for the first nine months was $2.04 billion, down from $2.88 billion a year earlier, and operating cash flow fell to $3.09 billion from $4.12 billion.

By the numbers

• Revenue: $5.20 billion, down 1.3%
• GAAP EPS: loss of $11.17, versus earnings of $1.46
• Adjusted EPS: $1.75, down 14.2%
• Goodwill impairment: $6.45 billion
• 2026 adjusted EPS outlook: $7.20 to $7.40, reaffirmed
• Fourth-quarter buyback plan: $500 million

Sources

1. Fiserv Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0000798354-26-000039)

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