Fiserv reaffirms growth targets despite Q1 profit dip

Fiserv (NASDAQ:FISV) reaffirmed its annual financial targets following a first quarter that saw a contraction in reported earnings, as the company prepares to detail a new medium-term strategy to investors next week.

The Milwaukee-based fintech provider reported GAAP revenue of $5.03 billion for the quarter ended March 31, a 2% decline compared to the prior year.

The decrease was largely driven by a 5% drop in its Financial Solutions segment, while the Merchant Solutions business remained flat.

Net income was bolstered by a $254 million discrete income tax benefit, though GAAP earnings per share still fell 29% to $1.07.

On an adjusted basis, which management says better reflects core performance, revenue was $4.68 billion and earnings per share stood at $1.79.

While these figures represent a year-over-year decline, Chief Executive Officer Mike Lyons noted that the results were "in line with expectations" and reflected the company's current "execution mode" under the One Fiserv Action Plan.

Free cash flow for the period fell to $259 million, down from $648 million in the previous year's first quarter.

Despite the lower cash generation, Fiserv continued its aggressive capital return policy, repurchasing 3.3 million shares for $200 million during the quarter.

The company's Clover point-of-sale platform remained a growth driver, with Clover gross payment volume rising 12% on an adjusted basis, even as broader segment margins faced pressure.

Merchant Solutions operating margins tightened to 26.4% from 34.2% a year ago, reflecting ongoing investments and shifting volume mix.

Looking ahead, Fiserv reaffirmed its 2026 full-year outlook, projecting organic revenue growth of 1% to 3% and adjusted EPS in the range of $8 to $8.30.