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Fiserv’s $4.68 Billion Quarter: Can Clover & AI Offset Client Attrition?

Fiserv reported first quarter 2026 results in line with prior guidance, reflecting continued progression under its One Fiserv Action Plan amid transitional challenges. Total adjusted revenue stood at $4.68 billion, down 2.4% year-over-year, primarily due to lapping higher nonrecurring revenue from the previous year. Organic revenue declined 3.6%, reflecting ongoing impacts from prior client service issues and continued investments aimed at long-term growth. Adjusted operating income was $1.4 billion, with an operating margin of 29.7%, close to the guidance of just below 30%. Adjusted earnings per share were $1.79, benefiting from a timing-related low adjusted effective tax rate of 11% in the quarter, although full-year guidance remains at 19%-19.5%. Free cash flow was $259 million, consistent with the seasonal expectations for Q1. The Merchant Solutions segment showed stable performance with adjusted revenue flat and organic revenue down 1%, influenced by external factors including reduced inflation and interest rates in Argentina.