Fiserv Inc. (NYSE:FISV) stock traded lower Thursday after the payments technology company reported mixed second-quarter results, with adjusted earnings missing Wall Street estimates despite a revenue beat. The company also lowered its full-year 2026 adjusted earnings guidance to below analysts’ expectations.

Q2 Earnings Miss Despite Revenue Beat

Adjusted earnings came in at $1.84 per share, below the consensus estimate of $1.91. Revenue totaled $5.29 billion, topping analysts’ expectations of $5.04 billion but declining 4% from a year earlier. GAAP earnings per share fell 37% year over year to $1.17, while adjusted EPS declined 26%.

Revenue Trends and Margin Pressure

Organic revenue decreased 5% during the quarter, reflecting a 1% decline in Merchant Solutions and an 8% drop in Financial Solutions. Adjusted operating margin narrowed to 31.8% from 39.6% a year earlier, while free cash flow for the first six months declined to $1.36 billion from $1.55 billion.

Cash and cash equivalents totaled $627 million as of June 30. Net cash provided by operating activities was $2.08 billion for the first six months of 2026, down from $2.31 billion in the year-ago period.

“Our business continues to be supported by volume growth and strong positions in attractive markets,” CEO Takis Georgakopoulos said. He added that the company is improving execution, enhancing its technology and remains committed to long-term shareholder value.

FY2026 Outlook Cut

Fiserv now expects full-year 2026 adjusted earnings per share of $7.20 to $7.40, down from its prior forecast of $8.00 to $8.30 and below the analyst consensus estimate of $8.10. The company also revised its organic revenue outlook to a decline of 1% to flat for the year.

Chief Financial Officer Paul Todd said 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.

Capital Allocation and Strategic Initiatives

During the quarter, Fiserv repurchased 1.7 million shares for $100 million, completed a 1 billion euros senior notes offering and retired $1.41 billion of outstanding debt through a tender offer and open-market repurchases.

The company also completed the formation of its previously announced MoneyPass Group joint venture, in which it retains a minority ownership stake.

FISV Price Action: Fiserv shares were down 10.81% at $48.26 during premarket trading on Thursday, according to Benzinga Pro data.

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