Fiserv, Inc. (FISV) reported a decline in second-quarter adjusted revenues, earnings, and margins, leading to a revised 2026 outlook and raising concerns about valuation amid weakened growth. The company now anticipates 2026 revenues of $19.6 billion, a 0.8% decrease from 2025, and adjusted earnings per share down to $7.20-$7.40, representing a 14.2% year-over-year decline.
Fiserv’s stock trades at 6.5 times forward 12-month earnings, significantly lower than 18.8 times for its Zacks sub-industry, 18.0 times for the Zacks Business Services sector, and 20.5 times for the S&P 500. The adjusted operating margin contracted to 31.8%, compared to 39.6% a year earlier, while adjusted earnings fell by 26% to $1.84 per share, indicating persistent profitability challenges.
Despite these challenges, Clover, Fiserv’s growth initiative, reported a 9% increase in gross payment volume, suggesting potential for future revenue growth. The company generated $1.1 billion in free cash flow and repurchased $300 million of its shares in the first half of the year, although it carries a debt-to-equity ratio of 0.99, higher than the industry average of 0.52, adding to overall execution risks.
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