Fiserv Q3 EPS matches estimates as savings target rises to $1 billion

Fiserv said on Nov. 3 that third-quarter adjusted earnings per share were $1.75, in line with the $1.75 consensus estimate compiled by Finnhub.

Adjusted revenue came in at $4.85 billion, below the $4.94 billion estimate, the company said in a press release.

The company also raised its Project Elevate savings target to $1 billion, from $500 million. It said the increase follows a comprehensive portfolio review and identification of additional operational efficiencies.

Here's how the company did:

• Adjusted EPS: $1.75 vs. $2.04 a year earlier, in line with the $1.75 consensus estimate
• GAAP EPS: a loss of $11.17 vs. $1.46 a year earlier
• Adjusted revenue: $4.85 billion vs. $4.92 billion a year earlier, below the $4.94 billion consensus estimate
• GAAP revenue: $5.20 billion vs. $5.26 billion a year earlier

The GAAP loss reflects a non-cash goodwill impairment charge of $6.45 billion recorded in the third quarter. The company said the charge was triggered by sustained decreases in its share price and market capitalization.

Revenue and segments

Organic revenue was flat in the third quarter, the company said. Merchant Solutions organic revenue fell 2%, while Financial Solutions grew 2%.

GAAP revenue in Merchant Solutions decreased 3% in the quarter, and was flat in Financial Solutions.

Adjusted operating margin for the company was 31.2%, compared with 37.0% a year earlier.

Cost savings and buybacks

The company said it completed the sale of its student loan servicing business and formed MoneyPass Group, a joint venture that includes its MoneyPass Network, ATM Managed Services and Cash Intelligence businesses. Fiserv maintains a minority ownership interest in the venture.

The company expects to repurchase $500 million of its common stock in the fourth quarter of 2026 under its existing authorization.

Paul Todd, Chief Financial Officer of Fiserv, said: "Our growing confidence also allows us to resume share repurchases earlier than anticipated, with $500 million planned in the fourth quarter."

2026 outlook

Fiserv continues to expect organic revenue of (1%) to 0% and adjusted EPS of $7.20 to $7.40 for 2026, the same ranges it gave in August.

Todd said: "Our second-half initiatives are on track to support the revenue acceleration we expect in the fourth quarter, and we are reaffirming our full-year guidance."