Fiserv Beats Q3 Estimates but Takes $6.45B Goodwill Impairment, Shares Jump Nearly 10%

Fiserv reported third-quarter 2026 adjusted revenue of $4.85 billion, narrowly topping the consensus estimate of $4.84 billion, while adjusted EPS of $1.75 beat expectations of $1.72. Both figures were down from a year ago, with adjusted EPS falling 14% and revenue slipping 1%, and organic revenue growth came in flat for the quarter. Shares surged roughly 9.7% in pre-market trading after the results crossed.

The headline drag on reported results was a $6.45 billion non-cash goodwill impairment charge, which drove GAAP EPS to a loss of $11.17 per share. Adjusted operating income was $1.51 billion, in line with estimates, but the adjusted operating margin contracted 580 basis points year over year to 31.2%. Free cash flow remained a bright spot at $2.04 billion for the quarter.

By segment, Merchant Solutions revenue fell 3% year over year to $2.52 billion, while Financial Solutions revenue held flat at $2.33 billion. Fiserv affirmed its full-year FY26 guidance, projecting adjusted EPS of $7.20 to $7.40 against a Street estimate of $7.25, and organic revenue growth in a range of negative 1% to flat. The company also announced a $500 million share buyback planned for the fourth quarter and raised its Project Elevate cost savings target to $1 billion from a prior $500 million.