Fiserv Inc.
11/04/2026 | Press release | Distributed by Public on 11/04/2026 06:13
Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking Statements
This quarterly report contains "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those that express a plan, belief, expectation, estimation, anticipation, intent, contingency, future development, outlook, or similar expression, and can generally be identified as forward-looking because they include words such as "believes," "anticipates," "expects," "could," "should," "confident," "likely," "plan," or words of similar meaning. Statements that describe our future plans, objectives or goals are also forward-looking statements.
The forward-looking statements in this report involve significant risks and uncertainties, and a number of factors, both foreseen and unforeseen, could cause actual results to differ materially from our current expectations. The factors that may affect our results include, among others, the following: our ability to compete effectively against new and existing competitors and to continue to introduce competitive new products and services on a timely, cost-effective basis; changes in customer demand for our products and services; the ability of our technology to keep pace with a rapidly evolving marketplace; our ability to successfully implement and achieve the expected benefits associated with our One Fiserv action plan; the success of our merchant alliances, some of which we do not control; the impact of a security breach or operational failure on our business, including disruptions caused by other participants in the global financial system; losses due to chargebacks, refunds or returns as a result of fraud or the failure of our vendors and merchants to satisfy their obligations; changes in local, regional, national and international economic or political conditions, including those resulting from heightened inflation, rising interest rates, taxes, trade policies and tariffs, a recession, bank failures, or international hostilities, and the impact they may have on us and our employees, clients, vendors, supply chain, operations and sales; our ability to use artificial intelligence to improve our products and services and enhance our operations; the effect of proposed and enacted legislative and regulatory actions affecting us or the financial services industry as a whole; our ability to comply with government regulations and applicable card association and network rules; the protection and validity of intellectual property rights; the outcome of pending and future litigation and governmental proceedings; our ability to successfully identify, complete and integrate acquisitions, and to realize the anticipated benefits associated with the same; the impact of our growth strategies; our ability to repurchase our common stock, including the expected amount, timing and funding of such repurchases; our ability to attract and retain key personnel; adverse impacts from currency exchange rates or currency controls; changes in corporate tax and interest rates; the possibility that we may be required to record non-cash goodwill impairment charges in future periods; and other factors included in "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, and in other documents that we file with the Securities and Exchange Commission, which are available at http://www.sec.gov. You should consider these factors carefully in evaluating forward-looking statements and are cautioned not to place undue reliance on such statements, which speak only as of the date of this report. We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this report.
Management's discussion and analysis of financial condition and results of operations is provided as a supplement to our unaudited consolidated financial statements and accompanying notes to help provide an understanding of our financial condition, the changes in our financial condition and our results of operations. Our discussion is organized as follows:
•Overview. This section contains background information on: our company and the products and services that we provide, acquisitions, dispositions, other transactions and the trends affecting our industry in order to provide context for management's discussion and analysis of our financial condition and results of operations.
•Changes in critical accounting policies and estimates. This section contains a discussion of changes since our Annual Report on Form 10-K for the year ended December 31, 2025 in the accounting policies that we believe are important to our financial condition and results of operations and that require judgment and estimates on the part of management in their application.
•Results of operations. This section contains an analysis of our results of operations presented in the accompanying unaudited consolidated statements of income (loss) by comparing the results for the three and nine months ended September 30, 2026 to the comparable periods in 2025.
•Liquidity and capital resources. This section provides an analysis of our cash flows and a discussion of our outstanding debt at September 30, 2026.
Overview
Company Background
We are a global leader uniting commerce and finance. At the intersection of banking and commerce, we power sustained growth and innovation at scale for financial institutions and businesses worldwide across payments, account processing, digital banking, merchant acquiring, network services, e-commerce, and Clover®, the all-in-one business management platform. Most of the products and services we provide are necessary for our clients to operate their businesses and are therefore non-discretionary in nature. We serve our global client base by working among our geographic teams across various regions, including the United States of America ("U.S.") and Canada; Europe, Middle East and Africa; Latin America; and Asia Pacific. Our operations are comprised of the Merchant Solutions ("Merchant") segment and the Financial Solutions ("Financial") segment.
We are focused on providing exceptional client service, world-class execution, value-added technology solutions, and cutting-edge innovation. Our long-term focus is to meet our financial commitments; deliver compelling, innovative solutions that address our clients' most critical needs; and realize productivity and efficiency gains by embedding artificial intelligence ("AI") in our products, services and business operations.
The businesses in our Merchant segment provide commerce-enabling products and services to companies of all sizes around the world. These products and services include merchant acquiring and digital commerce services; mobile payment services; security and fraud protection solutions; stored-value solutions; software-as-a-service; point-of-sale ("POS") devices; and pay-by-bank solutions. The business lines aggregated within the Merchant segment consist of the following:
•Small Business - provides products and services to small businesses and independent software vendors ("ISVs"), including Clover, our POS and business management platform for small business clients
•Enterprise - provides products and services to large businesses, including our integrated omnichannel operating system for enterprise clients
•Processing - provides products and services to financial institutions, joint ventures, and other third party resellers which have direct relationships with merchants
We distribute the products and services in the Merchant segment businesses through a variety of channels, including direct sales teams, strategic partnerships with agent sales forces, ISVs, independent sales organizations, financial institutions and other strategic partners in the form of joint venture alliances, revenue sharing alliances and referral agreements.
The businesses in our Financial segment provide products and services to financial institution, corporate and public sector clients across the world, enabling the processing of customer loan and deposit accounts, digital payments and card transactions. The business lines aggregated within the Financial segment consist of the following:
•Digital Payments - provides debit card processing services; debit network services; security and fraud protection products; bill payment; person-to-person payments; and account-to-account transfers
•Issuing - provides credit card processing services; prepaid card processing services; card production services; print services; and government payment processing
•Banking - provides customer loan and deposit account processing; digital banking; financial and risk management; professional services and consulting; and check processing
Corporate and Other supports the reportable segments described above, and consists of amortization of acquisition-related intangible assets, unallocated corporate expenses and other activities that are not considered when we evaluate segment performance, such as certain non-cash impairment charges; gains or losses on sales of businesses, certain assets or investments; costs associated with acquisition and disposition activity; expenses associated with our One Fiserv transformation initiative; and postage reimbursements.
One Fiserv Action Plan
In the third quarter of 2025, we launched the One Fiserv action plan designed to prioritize and enhance client focus across five strategic pillars. The One Fiserv action plan centers our investments in areas that build on Fiserv's strengths, including: operating with a client-first mindset to grow our client base and average revenue per client; building the leading small business operating platform with Clover®; creating innovative platforms in finance and commerce to drive value for our clients,
including embedded finance and stablecoin; delivering AI-enabled operational excellence and efficiency; and employing disciplined long-term capital allocation.
To advance this transformation, we are simplifying and standardizing processes, adopting new ways of working, and embedding AI to create a higher-quality, more productive business. This approach rethinks how business functions operate and aligns our product portfolio for the future. We are modernizing our technology infrastructure, enhancing resiliency, and reengineering our operating model through AI and advanced automation. We expect these efforts to strengthen efficiency, scalability, and innovation to deliver differentiated value and an exceptional experience for our clients.
Acquisitions, Dispositions and Other Transactions
We frequently review our businesses to ensure we have the necessary assets to execute our strategy. We expect to acquire businesses when we identify: a compelling strategic need, such as a product, service or technology that helps meet client demand; a way to achieve business scale that enables competition and operational efficiency; or similar considerations. We expect to divest businesses that are not in line with our market, product, growth or margin profile, or financial strategies. The results of operations for the following acquired and divested businesses are included in our consolidated results from the respective dates of acquisition and through the respective dates of disposition.
Acquisitions of Businesses
On December 17, 2025, we acquired StoneCastle Cash Management, LLC, INDX Processing, LLC and StoneCastle Trust Co. (collectively, "StoneCastle"), a provider of deposit funding solutions. StoneCastle is included within the Financial segment and provides its network of depository institutions easy access to stable, cost efficient deposit funding. On October 1, 2025, we acquired a portion of The Toronto-Dominion Bank's merchant processing business in Canada ("TD Merchant Canada"). This business is included within the Merchant segment and expands the footprint of our Clover® POS and business management platform. In connection with this transaction, we signed a multi-year strategic managed services program agreement with The Toronto-Dominion Bank to utilize our technology, including Clover, within its Merchant Solutions business.
On September 25, 2025, we acquired the Smith Consulting Group, LLC business ("SCG"), an operational consulting service utilized by community banks and credit unions across the U.S. SCG is included within the Financial segment and supports our ability to provide consultative engagement to enhance community banks' and credit unions' strategic investments. On September 4, 2025, we acquired CardFree Inc. ("CardFree"), an all-in-one platform delivering integrated order, payment and loyalty solutions for merchants. CardFree is included within the Merchant segment and further expands the capabilities of our Clover POS and business management platform across the hospitality, restaurant and lodging industries.
On June 4, 2025, we acquired Money Money Serviços Financeiros S.A. ("Money Money"), a provider of risk analysis and credit decisioning solutions. Money Money is included within the Merchant segment and expands our payment and financial service capabilities, enabling access to working capital and other payment solutions for small and medium-sized businesses. On April 4, 2025, we acquired Pinch Payments NZ Limited (together with Zootive Pty Ltd, "Pinch Payments"), a payment facilitator. Pinch Payments is included within the Merchant segment and expands our flexible payment services for our partners and clients and our presence within the Asia Pacific region.
On March 18, 2025, we acquired CCV Group B.V. ("CCV"), a supplier of POS payment solutions. CCV is included within the Merchant segment and expands our network of payment solutions, enabling our ability to accelerate the deployment of our Clover POS and business management platform across Europe. On March 2, 2025, we acquired Payfare, Inc. ("Payfare"), a provider of program management solutions powering instant access to earnings and banking solutions for workforces. Payfare is included within the Financial segment and expands our embedded finance capabilities for large enterprises and financial institutions.
We acquired these businesses for aggregate consideration of $857 million, net of $84 million of acquired cash and including deferred payments and earn-out provisions with an estimated fair value of $35 million.
Disposition of Businesses and Other Transactions
On September 2, 2026, we completed the sale of our student loan servicing business, which was reported within the Financial segment, for net consideration of $85 million, of which $48 million was received in cash as of September 30, 2026 plus contingent earn-out provisions of up to $52 million, which will be recognized upon realization. During the third quarter of 2026, we recognized a pre-tax loss on the sale of $98 million, with a related income tax benefit of $6 million.
On August 5, 2026, we completed the sale of a 51% controlling financial interest in our MoneyPass Network, ATM Managed Services and Cash Intelligence businesses, which were reported within the Financial segment, for net cash proceeds of $102 million. Following the transaction, we retained a 49% noncontrolling ownership interest in the newly formed MoneyPass
Group. Upon deconsolidation, we recognized our retained ownership interest at fair value and recorded a pre-tax gain of $198 million, along with related income tax expense of $71 million, representing the excess of the consideration received and the fair value of the retained interest over the carrying amount of the net assets derecognized. We account for our retained ownership interest under the equity method. In connection with this transaction, we entered into a services agreement to provide certain processing and other support services to MoneyPass Group for defined service fees.
On September 5, 2025, we acquired the remaining 49.9% ownership interest, including cash held of $195 million, in AIB Merchant Services ("AIBMS"), a payments solution provider, for $420 million. On April 17, 2025, we acquired the remaining 19% ownership interest in ICICI Merchant Services Private Limited, a merchant acceptance business, for $22 million. We previously held a majority controlling financial interest in each of these subsidiaries, which continue to be consolidated and reported within the Merchant segment.
In the third quarter of 2024, Wells Fargo Bank, National Association ("Wells Fargo") provided us with a notice of non-renewal for the Wells Fargo Merchant Services merchant alliance ("WFMS"), which was accounted for as an equity method investment. Upon the expiration of the joint venture in April 2025, we received a cash payment of $453 million. In connection with the non-renewal of WFMS, we entered into a multi-year agreement with Wells Fargo to provide processing for current and future merchant clients as well as other services to Wells Fargo's merchant business.
Goodwill Impairment
We determined that a triggering event occurred during the third quarter of 2026 as a result of sustained decreases in our share price and market capitalization, and therefore performed an interim quantitative goodwill impairment test for all of our reporting units in connection with the preparation of our consolidated financial statements for the three months ended September 30, 2026. The impairment assessment determined that the estimated fair values of certain reporting units were less than their respective carrying values and resulted in an aggregate non-cash goodwill impairment charge of $6.45 billion during the three months ended September 30, 2026. It is reasonably possible that further significant and sustained decreases in our share price and market capitalization; a shift in strategic initiatives; a deterioration in financial performance within a particular reporting unit; or significant changes in the composition of, or assumptions used in, the quantitative test for certain of our reporting units (such as an increase in risk-adjusted discount rates) could have a material impact on one or more of the estimates and assumptions used in our evaluation of goodwill impairment in subsequent periods.
Industry Trends
The global payments landscape continues to evolve, with rapidly advancing technologies and a steady expansion of digital payments, e-commerce and real-time payments infrastructure. Because of this growth, competition also continues to intensify. Business and consumer expectations continue to rise, with a focus on speed, convenience, choice and security. To meet these expectations, payments companies are focused on modernizing their technology, expanding the use of data and enhancing the customer experience. These innovations are driving a competitive landscape where customer expectations evolve rapidly as services digitize and choices multiply.
Merchants
The rapid growth in and globalization of mobile and e-commerce, driven by consumers' desire for simpler, more efficient shopping experiences, has created an opportunity for merchants to reach consumers nearly anywhere, through any device, which often requires a merchant acquiring provider to enable and optimize the acceptance of payments. Consumers are increasingly using digital wallets, contactless payments, and mobile-first solutions, making omnichannel strategies that integrate online, mobile, and in-store experiences essential for customer retention. Consumers expect instant and secure checkouts, making simplified payment orchestration critical. Merchants are demanding simpler, integrated and flexible systems to enable them to serve customers and help manage cash flow and everyday business operations. When combined with the ever-increasing ways a consumer can pay for goods and services, merchants have sought modern end-to-end solutions throughout their growth lifecycle to streamline the complexity. Merchants are moving beyond traditional payment acceptance to offer embedded financial services to deepen customer relationships and create new revenue streams. Unified commerce solutions and value-added services are becoming key differentiators in competitive markets. Furthermore, merchants can now search, discover, compare, purchase and even install a new system through direct, digital-only experiences. This direct, digital-only channel is a source of new merchant acquisition opportunities, especially with respect to smaller merchants.
Additionally, there are numerous software-as-a-service solution providers in the industry, many of which have chosen to integrate merchant acquiring into their software as a way to generate revenue from existing client relationships. Such providers are referred to as ISVs, and we believe there are numerous potential distribution partnership opportunities to cross-sell multiple value-added solutions available to us.
We believe that our merchant acquiring products and solutions create compelling value propositions for merchant clients of all sizes, from small and mid-sized businesses to medium-sized regional businesses to global enterprise merchants. The depth and breadth of our omnichannel solutions, and flexibility to serve clients across various channels and geographies, drives higher product attach rates with new and existing clients across all verticals. Furthermore, we believe that our strength in distribution, our progress growing software and services, and our value-based pricing as we continue to invest in our operating systems, gives us a solid foundation for growth. We are at the intersection of finance and commerce, creating opportunities for integrated solutions that combine payment acceptance, financial services, and data-driven insights.
Financial Institutions
Financial services providers regularly introduce and implement new payment, deposit, risk management, lending and investment products, and the distinctions among the products and services traditionally offered by different types of financial institutions continue to narrow as they seek to serve the same customers. At the same time, the evolving global regulatory and cybersecurity landscape has continued to create a challenging operating environment for financial institutions. These conditions are driving heightened interest in solutions that help financial institutions win and retain customers, generate revenue, comply with regulations and enhance operating efficiency. In addition, the focus on the customer experience, including through mobile and online engagement, by both financial institutions and their customers, as well as the growing volume and types of payment transactions in the marketplace, continues to elevate the data and transaction processing needs of financial institutions.
Financial institutions must be able to serve their customers with tailored solutions, delivered how and when those customers desire. In addition, financial institutions are striving for this single, integrated view of a customer's activity. This requires financial institutions to not only process customer transactions, but to integrate financial institutions' products and services to give customers easy access to integrated solutions. We believe that the integration of our products and services creates a compelling value proposition for our clients by providing, among other things, new sources of revenue and opportunities to reduce their costs. We have invested in integrating our platforms and value-added solutions to make it easy for a client to buy across our full product suite.
Demand for innovative payment solutions continues to grow, with a focus on faster, more convenient options across mobile channels, online applications, in-store cards, and digital currencies. Financial institutions are adopting advanced technologies, introducing new solutions, and responding to an increasingly complex regulatory landscape. We expect that financial institutions will continue to invest significant capital to process transactions, manage information, maintain regulatory compliance and offer innovative new services to their customers in this rapidly evolving and competitive environmental shift from traditional to digital banking. Stablecoins and cryptocurrencies may also become more widely used as digital currencies provide increased accessibility and efficiency. We believe that economies of scale in developing and maintaining the infrastructure, technology, products, services and networks necessary to be competitive in such a dynamic environment are essential to justify these investments, and we anticipate that demand for products that facilitate customer interaction with financial institutions, including a unified, seamless customer experience across mobile and online channels, will continue to increase, which we expect to create revenue opportunities for us.
Recent Market Conditions
Global macroeconomic conditions, including changing interest rates; inflation; disruptions in the global supply chain; changes in consumer spending, including a rise in fuel prices throughout 2026; legislative changes, including potential effects of new tax laws; the effects of international hostilities; political conditions; regulations restricting trade or impacting our ability to offer products or services; and trade policies and tariffs, could have a material adverse effect on our business, results of operations and financial condition. A decline in personal consumption and consumer savings in the U.S. may also negatively impact our business and financial results. We actively monitor and manage our business in response to these unpredictable geopolitical and market conditions, as they may adversely impact our operations and financial results.
In addition, our operating results in certain foreign countries in which we operate may be adversely impacted by fluctuations in interest rates and exchange rates for currencies other than the U.S. dollar, including the Euro, British Pound, Indian Rupee, Brazilian Real and Argentine Peso. The strengthening of the U.S. dollar against certain foreign currencies in countries in which we operate would negatively impact our revenue and earnings. We also have exposure to risks related to currency devaluation in certain countries, which may negatively impact our international operating results if there is a prolonged devaluation of local currencies relative to the U.S. dollar or if the economic conditions in these countries decline. While the majority of our revenue is earned in the U.S., we actively monitor the interest rate and foreign exchange rate environment and may enter into derivative instruments and utilize other non-derivative hedging instruments with creditworthy institutions in an effort to manage these risks.
Changes in Critical Accounting Policies and Estimates
Our unaudited consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America, which require management to make estimates, judgments and assumptions that affect the reported amount of assets, liabilities, revenue and expenses. In our Annual Report on Form 10-K for the year ended December 31, 2025, we identified our critical accounting policies and estimates. We continually evaluate the accounting policies and estimates that we use to prepare our consolidated financial statements, including for recently adopted accounting pronouncements, and base our estimates on historical experience and assumptions that we believe are reasonable in light of current circumstances. Actual amounts and results could differ materially from these estimates. For example, we estimate the fair values of identifiable assets acquired and liabilities assumed in connection with acquisitions of businesses and may record purchase accounting adjustments during the measurement period, which may be up to one year from the acquisition date. Additionally, we review the carrying value of goodwill for impairment by comparing the estimated fair values of our reporting units to their respective carrying values. Determining the fair value of a reporting unit involves judgment and the use of significant estimates and assumptions, which include assumptions regarding the revenue growth rates and operating margins used to calculate estimated future cash flows, risk-adjusted discount rates, and future economic and market conditions. Except for the item discussed below, there have been no material changes to our critical accounting policies and estimates from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
We review the carrying value of goodwill for impairment annually, or more frequently if events or circumstances indicate that the carrying value may not be recoverable. We determined that a triggering event occurred during the third quarter of 2026 as a result of sustained decreases in our share price and market capitalization, and therefore performed an interim quantitative goodwill impairment test for all of our reporting units in connection with the preparation of our consolidated financial statements for the three months ended September 30, 2026. Additional information regarding our goodwill impairment assessment during the third quarter of 2026 is included in Note 1 to the consolidated financial statements.
Results of Operations
The following tables present certain amounts included in our consolidated statements of income (loss), the relative percentage that those amounts represent to revenue and the change in those amounts from year to year. This information should be read together with the unaudited consolidated financial statements and accompanying notes. The unaudited financial results presented below have been affected by acquisitions, dispositions, certain non-cash impairment charges, expenses associated with our One Fiserv transformation initiative, net gains or losses on disposition of businesses and other assets, foreign currency fluctuations, and gains on early debt extinguishment associated with refinancing activities.
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 |
Percentage of
Revenue (1)
|
Increase (Decrease) (2)
|
||||||||||||||||||||||||||||||||
| (In millions) | 2026 | 2025 | $ | % | |||||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||
| Processing and services | $ | 4,231 | $ | 4,273 | 81.4 | % | 81.2 | % | $ | (42) | (1) | % | |||||||||||||||||||||||
| Product | 965 | 990 | 18.6 | % | 18.8 | % | (25) | (3) | % | ||||||||||||||||||||||||||
| Total revenue | 5,196 | 5,263 | 100.0 | % | 100.0 | % | (67) | (1) | % | ||||||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||||||||
| Cost of processing and services | 1,726 | 1,486 | 40.8 | % | 34.8 | % | 240 | 16 | % | ||||||||||||||||||||||||||
| Cost of product | 713 | 679 | 73.9 | % | 68.6 | % | 34 | 5 | % | ||||||||||||||||||||||||||
| Sub-total | 2,439 | 2,165 | 46.9 | % | 41.1 | % | 274 | 13 | % | ||||||||||||||||||||||||||
| Selling, general and administrative | 1,901 | 1,762 | 36.6 | % | 33.5 | % | 139 | 8 | % | ||||||||||||||||||||||||||
| Net gain on disposition of businesses and other assets | (102) | (100) | (2.0) | % | (1.9) | % | 2 | 2 | % | ||||||||||||||||||||||||||
| Goodwill impairment | 6,452 | - | 124.2 | % | - | % | 6,452 | n/m | |||||||||||||||||||||||||||
| Total expenses | 10,690 | 3,827 | 205.7 | % | 72.7 | % | 6,863 | n/m | |||||||||||||||||||||||||||
| Operating income (loss) | (5,494) | 1,436 | (105.7) | % | 27.3 | % | (6,930) | n/m | |||||||||||||||||||||||||||
| Interest expense, net | (333) | (422) | (6.4) | % | (8.0) | % | (89) | (21) | % | ||||||||||||||||||||||||||
| Gain on early debt extinguishment | 29 | - | 0.6 | % | - | % | 29 | n/m | |||||||||||||||||||||||||||
| Other expense, net | (4) | (50) | (0.1) | % | (1.0) | % | (46) | (92) | % | ||||||||||||||||||||||||||
| Income (loss) before income taxes and income from investments in unconsolidated affiliates | (5,802) | 964 | (111.7) | % | 18.3 | % | (6,766) | n/m | |||||||||||||||||||||||||||
| Income tax provision | (137) | (173) | (2.6) | % | (3.3) | % | (36) | (21) | % | ||||||||||||||||||||||||||
| Income from investments in unconsolidated affiliates | - | 8 | - | % | 0.2 | % | (8) | n/m | |||||||||||||||||||||||||||
| Net income (loss) | (5,939) | 799 | (114.3) | % | 15.2 | % | (6,738) | n/m | |||||||||||||||||||||||||||
| Less: net income attributable to noncontrolling interests | 2 | 7 | - | % | 0.1 | % | (5) | (71) | % | ||||||||||||||||||||||||||
| Net income (loss) attributable to Fiserv, Inc. | $ | (5,941) | $ | 792 | (114.3) | % | 15.0 | % | $ | (6,733) | n/m | ||||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 |
Percentage of
Revenue (1)
|
Increase (Decrease) (2)
|
||||||||||||||||||||||||||||||||
| (In millions) | 2026 | 2025 | $ | % | |||||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||
| Processing and services | $ | 12,593 | $ | 12,622 | 81.2 | % | 79.3 | % | $ | (29) | - | % | |||||||||||||||||||||||
| Product | 2,922 | 3,287 | 18.8 | % | 20.7 | % | (365) | (11) | % | ||||||||||||||||||||||||||
| Total revenue | 15,515 | 15,909 | 100.0 | % | 100.0 | % | (394) | (2) | % | ||||||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||||||||
| Cost of processing and services | 5,042 | 4,287 | 40.0 | % | 34.0 | % | 755 | 18 | % | ||||||||||||||||||||||||||
| Cost of product | 2,099 | 2,057 | 71.8 | % | 62.6 | % | 42 | 2 | % | ||||||||||||||||||||||||||
| Sub-total | 7,141 | 6,344 | 46.0 | % | 39.9 | % | 797 | 13 | % | ||||||||||||||||||||||||||
| Selling, general and administrative | 5,674 | 5,155 | 36.6 | % | 32.4 | % | 519 | 10 | % | ||||||||||||||||||||||||||
| Net gain on disposition of businesses and other assets | (191) | (117) | (1.2) | % | (0.7) | % | 74 | 63 | % | ||||||||||||||||||||||||||
| Goodwill impairment | 6,452 | - | 41.6 | % | - | % | 6,452 | n/m | |||||||||||||||||||||||||||
| Total expenses | 19,076 | 11,382 | 123.0 | % | 71.5 | % | 7,694 | 68 | % | ||||||||||||||||||||||||||
| Operating income (loss) | (3,561) | 4,527 | (23.0) | % | 28.5 | % | (8,088) | n/m | |||||||||||||||||||||||||||
| Interest expense, net | (1,050) | (1,118) | (6.8) | % | (7.0) | % | (68) | (6) | % | ||||||||||||||||||||||||||
| Gain on early debt extinguishment | 183 | - | 1.2 | % | - | % | 183 | n/m | |||||||||||||||||||||||||||
| Other expense, net | (6) | (107) | - | % | (0.7) | % | (101) | (94) | % | ||||||||||||||||||||||||||
| Income (loss) before income taxes and income (loss) from investments in unconsolidated affiliates | (4,434) | 3,302 | (28.6) | % | 20.8 | % | (7,736) | n/m | |||||||||||||||||||||||||||
| Income tax provision | (317) | (609) | (2.0) | % | (3.8) | % | (292) | (48) | % | ||||||||||||||||||||||||||
| Income (loss) from investments in unconsolidated affiliates | 15 | (16) | 0.1 | % | (0.1) | % | 31 | n/m | |||||||||||||||||||||||||||
| Net income (loss) | (4,736) | 2,677 | (30.5) | % | 16.8 | % | (7,413) | n/m | |||||||||||||||||||||||||||
| Less: net income attributable to noncontrolling interests | 7 | 8 | - | % | 0.1 | % | (1) | (13) | % | ||||||||||||||||||||||||||
| Net income (loss) attributable to Fiserv, Inc. | $ | (4,743) | $ | 2,669 | (30.6) | % | 16.8 | % | $ | (7,412) | n/m | ||||||||||||||||||||||||
(1)Percentage of revenue is calculated as the relevant revenue, expense or income (loss) amount divided by total revenue, except for cost of processing and services and cost of product amounts, which are divided by the related component of revenue.
(2)n/m - Not meaningful
| Three Months Ended September 30, | |||||||||||||||||||||||
| (In millions) | Merchant | Financial |
Corporate and Other |
Total | |||||||||||||||||||
| Total revenue: | |||||||||||||||||||||||
| 2026 | $ | 2,521 | $ | 2,331 | $ | 344 | $ | 5,196 | |||||||||||||||
| 2025 | 2,586 | 2,333 | 344 | 5,263 | |||||||||||||||||||
| Revenue change | $ | (65) | $ | (2) | $ | - | $ | (67) | |||||||||||||||
| Revenue change percentage | (3) | % | - | % | (1) | % | |||||||||||||||||
| Operating income (loss): | |||||||||||||||||||||||
| 2026 | $ | 724 | $ | 887 | $ | (7,105) | $ | (5,494) | |||||||||||||||
| 2025 | 962 | 991 | (517) | 1,436 | |||||||||||||||||||
| Operating income (loss) change | $ | (238) | $ | (104) | $ | (6,588) | $ | (6,930) | |||||||||||||||
| Operating income (loss) change percentage | (25) | % | (10) | % | (483) | % | |||||||||||||||||
| Operating margin: | |||||||||||||||||||||||
| 2026 | 28.7 | % | 38.1 | % | (105.7) | % | |||||||||||||||||
| 2025 | 37.2 | % | 42.5 | % | 27.3 | % | |||||||||||||||||
|
Operating margin change (1)(2)
|
(850) | bps | (440) | bps | n/m | ||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||
| (In millions) | Merchant | Financial |
Corporate and Other |
Total | |||||||||||||||||||
| Total revenue: | |||||||||||||||||||||||
| 2026 | $ | 7,502 | $ | 6,988 | $ | 1,025 | $ | 15,515 | |||||||||||||||
| 2025 | 7,602 | 7,302 | 1,005 | 15,909 | |||||||||||||||||||
| Revenue change | $ | (100) | $ | (314) | $ | 20 | $ | (394) | |||||||||||||||
| Revenue change percentage | (1) | % | (4) | % | (2) | % | |||||||||||||||||
| Operating income (loss): | |||||||||||||||||||||||
| 2026 | $ | 2,131 | $ | 2,676 | $ | (8,368) | $ | (3,561) | |||||||||||||||
| 2025 | 2,686 | 3,383 | (1,542) | 4,527 | |||||||||||||||||||
| Operating income (loss) change | $ | (555) | $ | (707) | $ | (6,826) | $ | (8,088) | |||||||||||||||
| Operating income (loss) change percentage | (21) | % | (21) | % | (179) | % | |||||||||||||||||
| Operating margin: | |||||||||||||||||||||||
| 2026 | 28.4 | % | 38.3 | % | (23.0) | % | |||||||||||||||||
| 2025 | 35.3 | % | 46.3 | % | 28.5 | % | |||||||||||||||||
|
Operating margin change (1)(2)
|
(690) | bps | (800) | bps | n/m | ||||||||||||||||||
(1)Represents the basis point change in operating margin.
(2)n/m - Not meaningful
Revenue and operating income (loss) change percentages, as well as operating margin percentages are calculated using actual, unrounded amounts.
Total Revenue
Total revenue decreased $67 million, or 1%, in the third quarter of 2026 and $394 million, or 2%, in the first nine months of 2026 compared to the prior year periods. Revenue in our Merchant segment decreased 3% in the third quarter and 1% in the first nine months of 2026 compared to the prior year periods. Revenue in our Financial segment was flat in the third quarter and decreased 4% in the first nine months of 2026 compared to the prior year periods.
Revenue in our Merchant segment decreased $65 million, or 3%, in the third quarter of 2026 and $100 million, or 1%, in the first nine months of 2026 compared to the prior year periods. Small Business and Enterprise each contributed a 1% decline to Merchant segment revenue in the third quarter of 2026 and were flat in the first nine months of 2026. Processing contributed a 1% decline to Merchant segment revenue in both the third quarter and first nine months of 2026. The decrease in revenue in our
Merchant segment in the third quarter and first nine months of 2026 was primarily due to a $56 million and $128 million decrease, respectively, in anticipation revenue in Argentina, attributed to lower inflation and interest rates. Revenue in our Merchant segment was also negatively impacted by lower data and analytics sales in both the third quarter and first nine months of 2026 and a decline in hardware revenue within Small Business in the first nine months of 2026. The overall decrease in revenue in our Merchant segment was partially offset by global volume growth, including from our Clover POS and business management platform.
Revenue in our Financial segment was flat in the third quarter of 2026 and decreased $314 million, or 4%, in the first nine months of 2026 compared to the prior year periods. Digital Payments contributed a 1% and 2% decline to Financial segment revenue in the third quarter and first nine months of 2026, respectively; Issuing contributed a 2% increase and a 1% decline in the third quarter and first nine months of 2026, respectively; and Banking contributed a 1% decline to Financial segment revenue in both the third quarter and first nine months of 2026. In the third quarter of 2026, revenue in our Financial segment was negatively impacted by lower data and analytics sales, offset by an increase in license revenue within Issuing compared to the prior year period. In the first nine months of 2026, revenue in our Financial segment was negatively impacted by lower data and analytics sales and license revenue compared to the prior year period, primarily within Digital Payments and Banking.
Revenue at Corporate and Other was flat in the third quarter of 2026 and increased $20 million, or 2%, in the first nine months of 2026 compared to the prior year periods, due to an increase in postage revenue.
Total Expenses
Total expenses increased $6.86 billion in the third quarter of 2026 and $7.69 billion in the first nine months of 2026 compared to the prior year periods. Total expenses as a percentage of total revenue increased to 205.7% in the third quarter of 2026 and to 123.0% in the first nine months of 2026 compared to 72.7% and 71.5%, respectively, in the prior year periods. Total expenses as a percentage of total revenue were primarily impacted by a non-cash goodwill impairment charge of $6.45 billion recorded in the third quarter of 2026. Total expenses as a percentage of total revenue in the third quarter and first nine months of 2026 were also impacted by higher personnel costs, including professional fees, of approximately 670 basis points and 580 basis points, respectively, and costs associated with our strategic One Fiserv transformation program of approximately 280 basis points and 310 basis points, respectively, to support the client experience.
Cost of processing and services as a percentage of processing and services revenue increased to 40.8% in the third quarter of 2026 compared to 34.8% in the third quarter of 2025 and increased to 40.0% in the first nine months of 2026 compared to 34.0% in the first nine months of 2025. Cost of processing and services as a percentage of processing and services revenue in the third quarter and first nine months of 2026 was negatively impacted by higher personnel costs, including professional fees, of approximately 470 basis points and 360 basis points and costs associated with our strategic One Fiserv transformation program of approximately 170 basis points and 190 basis points, respectively.
Cost of product as a percentage of product revenue increased to 73.9% in the third quarter of 2026 compared to 68.6% in the third quarter of 2025 and increased to 71.8% in the first nine months of 2026 compared to 62.6% in the first nine months of 2025. Cost of product as a percentage of product revenue in the third quarter and first nine months of 2026 was negatively impacted by higher personnel costs, including professional fees, of approximately 240 basis points and 250 basis points, respectively, as well as a decrease in total company high margin data and analytics sales and license revenue compared to the prior year periods.
Selling, general and administrative expenses as a percentage of total revenue increased to 36.6% in the third quarter of 2026 compared to 33.5% in the third quarter of 2025 and increased to 36.6% in the first nine months of 2026 compared to 32.4% in the first nine months of 2025. Selling, general and administrative expenses as a percentage of total revenue was negatively impacted in the third quarter and first nine months of 2026 by higher personnel costs of approximately 250 basis points and 230 basis points and costs associated with our strategic One Fiserv transformation program of approximately 130 basis points and 150 basis points, respectively. Selling, general and administrative expenses also included an impairment charge of $68 million associated with certain leased facilities in the third quarter and first nine months of 2026.
The net gain on disposition of businesses and other assets in the third quarter and first nine months of 2026 included an aggregate net gain of $100 million on the sale of a 51% controlling interest in our MoneyPass Network, ATM Managed Services and Cash Intelligence businesses and the sale of our student loan servicing business. The net gain on disposition of businesses and other assets also included a net gain of $83 million on the sale-leaseback of certain facilities in the first nine months of 2026 and an $89 million gain related to the distribution of certain merchant contracts for the redemption of a minority partner's membership interest in the third quarter and first nine months of 2025.
Operating Income (Loss) and Operating Margin
Total operating income (loss) decreased $6.93 billion in the third quarter of 2026 and $8.09 billion in the first nine months of 2026 compared to the prior year periods. Total operating margin decreased to (105.7)% and (23.0)% in the third quarter and first nine months of 2026 compared to 27.3% and 28.5%, respectively, in the prior year periods. Total operating income (loss) and total operating margin were primarily impacted by a non-cash goodwill impairment charge of $6.45 billion recorded in the third quarter of 2026. Total operating income (loss) and total operating margin in both the third quarter and first nine months of 2026 were also impacted by a decrease in high margin data and analytics sales and higher costs to support the client experience, including personnel costs and costs associated with our strategic One Fiserv transformation program. Total operating income (loss) and total operating margin in the first nine months of 2026 were also impacted by a decrease in high margin license revenue.
Operating income in our Merchant segment decreased $238 million, or 25%, in the third quarter of 2026 and $555 million, or 21%, in the first nine months of 2026 compared to the prior year periods. Operating margin decreased to 28.7% and 28.4% in the third quarter and first nine months of 2026 compared to 37.2% and 35.3%, respectively, in the prior year periods. Operating income and operating margin in our Merchant segment were negatively impacted by a decrease in anticipation revenue in Argentina, as well as higher payments to distribution partners in both the third quarter and first nine months of 2026. Operating income in the Merchant segment benefited from a gain of $89 million in the third quarter and first nine months of 2025 related to the distribution of certain merchant contracts for the redemption of a minority partner's membership interest.
Operating income in our Financial segment decreased $104 million, or 10%, in the third quarter of 2026 and $707 million, or 21%, in the first nine months of 2026 compared to the prior year periods. Operating margin decreased to 38.1% and 38.3% in the third quarter and first nine months of 2026 compared to 42.5% and 46.3%, respectively, in the prior year periods. The decrease in operating income and operating margin in our Financial segment in the third quarter and first nine months of 2026 was primarily due to a decrease in high margin data and analytics sales and higher personnel costs, including professional fees, as well as a decrease in high margin license revenue in the first nine months of 2026 compared to the prior year period.
The operating loss in Corporate and Other increased $6.59 billion in the third quarter of 2026 and $6.83 billion in the first nine months of 2026 compared to the prior year periods. The operating loss was primarily impacted by a non-cash goodwill impairment charge of $6.45 billion recorded in the third quarter of 2026. The operating loss in the third quarter and first nine months of 2026 was also negatively impacted by costs associated with our strategic One Fiserv transformation program of $158 million and $487 million, respectively, partially offset by an aggregate net gain of $100 million on disposition of businesses and other assets in the third quarter and first nine months of 2026.
Interest Expense, Net
Interest expense, net decreased $89 million, or 21%, in the third quarter of 2026 and $68 million, or 6%, in the first nine months of 2026 compared to the prior year periods due to lower variable weighted average interest rates on our foreign lines of credit used to advance funds under our settlement anticipation program in Latin America. Interest expense, net was also impacted by overall lower outstanding borrowings as we focused on managing our leverage ratio, including the purchase of a portion of our outstanding 5.150% senior notes due in March 2027 and 4.400% senior notes due in July 2049 through a cash tender offer and open market repurchases during the first nine months of 2026. These decreases were partially offset by our public offering and issuances of €1.0 billion, $2.0 billion and €2.175 billion of senior notes in June 2026, August 2025 and May 2025, respectively.
Gain on Early Debt Extinguishment
In June 2026, we purchased through a cash tender offer and open market repurchase a portion of our outstanding 5.150% senior notes due in March 2027 and 4.400% senior notes due in July 2049. Upon expiration of the cash tender offer, $1.3 billion of aggregate net book value of the senior notes was tendered and accepted for purchase for total consideration of $1.2 billion paid to holders. Additionally, during the first nine months of 2026, $175 million of aggregate net book value of the senior notes due in July 2049 was retired through open market repurchases for total consideration of $141 million paid to holders. This activity resulted in a pre-tax gain on early debt extinguishment of $183 million recorded in the first nine months of 2026.
Other Expense, Net
Other expense, net decreased $46 million, or 92%, in the third quarter of 2026 and $101 million, or 94%, in the first nine months of 2026 compared to the prior year periods. Other expense, net includes the remeasurement of monetary assets and liabilities for subsidiaries located in highly inflationary economies, gains or losses from a sale or change in fair value of investments in equity securities, and amounts related to debt guarantee arrangements of certain joint ventures. The remeasurement of monetary assets and liabilities of subsidiaries located in Argentina, a highly inflationary economy, resulted in
foreign currency exchange losses of $14 million and $53 million for the three months ended September 30, 2026 and 2025, and $23 million and $117 million for the nine months ended September 30, 2026 and 2025, respectively.
Income Tax Provision
The income tax provision as a percentage of income (loss) before income taxes and income (loss) from investments in unconsolidated affiliates was (2.4)% and 17.9% for the three months ended September 30, 2026 and 2025, and (7.1)% and 18.4% for the nine months ended September 30, 2026 and 2025, respectively. The effective income tax rate for the three and nine months ended September 30, 2026 included impacts from the impairment of non-deductible goodwill, along with the disposal of non-deductible goodwill associated with the disposition of businesses. The effective income tax rate for the first nine months ended September 30, 2025 included discrete tax benefits from share-based awards, resulting in a lower effective income tax rate compared to the statutory income tax rate.
The effective income tax rate for the nine months ended September 30, 2026 also included the impact of a $293 million benefit related to the release of a valuation allowance against certain foreign net operating loss carryforwards that were determined to be realizable during the first quarter of 2026. This benefit was partially offset by a $39 million increase in U.S. federal unrecognized tax benefits for tax positions taken in prior years, $35 million in discrete tax expense from share-based awards and a $39 million increase in various other foreign valuation allowances during the first quarter of 2026.
Income (Loss) from Investments in Unconsolidated Affiliates
Our share of income or loss from unconsolidated affiliates accounted for using the equity method is reported within income (loss) from investments in unconsolidated affiliates, and the related tax expense or benefit is reported within the income tax provision in the consolidated statements of income (loss). Income (loss) from investments in unconsolidated affiliates, including acquired intangible asset amortization from valuations in purchase accounting, was $0 million and $8 million in the third quarter of 2026 and 2025, and $15 million and $(16) million in the first nine months of 2026 and 2025, respectively. Income (loss) from investments in unconsolidated affiliates included a $7 million non-cash impairment charge in the third quarter and first nine months of 2026, and $13 million of non-cash impairment charges in the first nine months of 2025.
Net Income Attributable to Noncontrolling Interests
Net income attributable to noncontrolling interests relates to the minority partners' share of the net income in our consolidated subsidiaries and was $2 million and $7 million in the third quarter of 2026 and 2025, and $7 million and $8 million in the first nine months of 2026 and 2025, respectively.
Net Income (Loss) Per Share - Diluted
Net income (loss) attributable to Fiserv, Inc. per share-diluted was $(11.17) and $1.46 in the third quarter of 2026 and 2025, and was $(8.90) and $4.83 in the first nine months of 2026 and 2025, respectively, driven by the impacts to net income (loss) attributable to Fiserv, Inc. described above, including the aggregate non-cash goodwill impairment charge of $6.45 billion recorded in the third quarter of 2026.
Liquidity and Capital Resources
General
Our primary liquidity needs in the ordinary course of business are to: (i) fund normal operating expenses; (ii) meet the interest and principal requirements of our outstanding indebtedness, including finance lease and other financing obligations; and (iii) fund capital expenditures and operating lease payments. We believe these needs will be satisfied in both the short and long term using cash flow generated by our operations, along with our cash and cash equivalents of $545 million, proceeds from the issuance of U.S. dollar and Euro commercial paper, and available capacity under our revolving credit facility of $4.3 billion (net of $240 million of outstanding revolver borrowings and $3.4 billion of capacity designated for outstanding borrowings under our commercial paper programs, senior notes due within the next 12 months and letters of credit) at September 30, 2026.
The following table summarizes our net cash provided by operating activities, or operating cash flow, and capital expenditures:
|
Nine Months Ended September 30, |
Increase (Decrease) | ||||||||||||||||||||||
| (In millions) | 2026 | 2025 | $ | % | |||||||||||||||||||
| Net income (loss) | $ | (4,736) | $ | 2,677 | $ | (7,413) | |||||||||||||||||
| Goodwill impairment | 6,452 | - | 6,452 | ||||||||||||||||||||
| Depreciation and amortization | 2,554 | 2,392 | 162 | ||||||||||||||||||||
| Share-based compensation | 345 | 302 | 43 | ||||||||||||||||||||
| Deferred income taxes | (312) | (589) | 277 | ||||||||||||||||||||
| Net gain on disposition of businesses and other assets | (191) | (117) | (74) | ||||||||||||||||||||
| Net gain on early debt extinguishment | (156) | - | (156) | ||||||||||||||||||||
| (Income) loss from investments in unconsolidated affiliates | (15) | 16 | (31) | ||||||||||||||||||||
| Distributions from unconsolidated affiliates | 30 | 34 | (4) | ||||||||||||||||||||
| Non-cash foreign currency exchange losses | 23 | 118 | (95) | ||||||||||||||||||||
| Other non-cash impairment charges | 68 | 5 | 63 | ||||||||||||||||||||
| Net changes in working capital and other | (968) | (720) | (248) | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 3,094 | $ | 4,118 | $ | (1,024) | (25) | % | |||||||||||||||
| Capital expenditures, including capitalized software and other intangibles | $ | 1,438 | $ | 1,321 | $ | 117 | 9 | % | |||||||||||||||
Our operating cash flow was $3.1 billion in the first nine months of 2026, a decrease of 25% compared with $4.1 billion in the first nine months of 2025. The decrease was primarily attributable to lower profitability, along with higher use of working capital compared to the first nine months of 2025, including timing of accounts payable and income tax payments.
Our current policy is to use our operating cash flow primarily to fund capital expenditures, merchant and settlement anticipation cash advances, acquisitions, debt repayment and share repurchases rather than to pay dividends. Our capital expenditures were approximately 9% and 8% of our total revenue for the first nine months of 2026 and 2025, respectively.
Share Repurchases
There were no repurchases of our common stock during the third quarter of 2026. We repurchased 7.2 million shares of our common stock for $1.0 billion during the third quarter of 2025. We repurchased 5.0 million shares of our common stock for $300 million and 29.1 million shares of our common stock for $5.4 billion during the first nine months of 2026 and 2025, respectively. On February 19, 2025, our board of directors authorized the purchase of up to 60.0 million shares of our common stock. This authorization does not expire. As of September 30, 2026, we had approximately 40.8 million shares remaining under our existing repurchase authorization. Shares repurchased are generally held for issuance in connection with our equity plans.
We expect to repurchase $500 million of our common stock during the fourth quarter of 2026 under our existing share repurchase authorization.
Acquisitions, Dispositions and Other Transactions
Acquisitions of Businesses
We acquired StoneCastle, TD Merchant Canada, SCG, CardFree, Money Money, Pinch Payments, CCV, and Payfare in 2025 for aggregate consideration of $857 million, net of $84 million of acquired cash and including deferred payments and earn-out provisions with an estimated fair value of $35 million. We funded these acquisitions by utilizing a combination of available cash and commercial paper. The results of operations for these acquired businesses are included in our consolidated results from the respective dates of acquisition.
Disposition of Businesses and Other Transactions
We completed the sales of our student loan servicing business and a 51% controlling financial interest in our MoneyPass Network, ATM Managed Services and Cash Intelligence businesses in the third quarter of 2026 for aggregate net consideration of $187 million, of which $150 million was received in cash as of September 30, 2026 plus contingent earn-out provisions of up to $52 million, which will be recognized upon realization. The net cash proceeds from these dispositions were used for general
corporate purposes, including the repayment of debt. The results of operations for these divested businesses are included in our consolidated results through the respective dates of disposition. We account for our retained 49% noncontrolling ownership interest in MoneyPass Group under the equity method and, in connection with this transaction, entered into a services agreement to provide certain processing and other support services to MoneyPass Group for defined service fees.
In May 2026, we entered into asset purchase and sale agreements with certain third parties providing for the monthly sale of certain future credit card receivables originated under our merchant cash advance programs. Aggregate proceeds from the sales of merchant cash advance receivables under these arrangements were $141 million and $293 million during the three and nine months ended September 30, 2026, respectively. The proceeds from these sales were primarily used to pay down indebtedness. Monthly sales of future credit card receivables under these agreements are expected to occur throughout the foreseeable future.
In the first quarter of 2026, we entered into sale leaseback arrangements for certain of our facilities for an aggregate net sales price of $201 million. The proceeds, which were received in the first half of 2026, were primarily used for general corporate purposes, including the repayment of debt.
In September 2025, we acquired the remaining 49.9% ownership interest, including cash held of $195 million, in AIBMS for $420 million. In April 2025, we acquired the remaining 19% ownership interest in ICICI Merchant Services Private Limited for $22 million. We previously held a majority controlling financial interest in each of these consolidated subsidiaries and funded these transactions utilizing a combination of available cash and proceeds from commercial paper borrowings.
In 2024, Wells Fargo provided us with a notice of non-renewal for WFMS and upon the expiration of the joint venture in April 2025, we received a cash payment of $453 million, which was primarily used to pay down indebtedness and for share repurchases.
Indebtedness
Our debt consisted of the following at:
| (In millions) | September 30, 2026 | December 31, 2025 | |||||||||
| Short-term and current maturities of long-term debt: | |||||||||||
| Foreign lines of credit | $ | 641 | $ | 762 | |||||||
| Finance lease and other financing obligations | 613 | 477 | |||||||||
| Total short-term and current maturities of long-term debt | $ | 1,254 | $ | 1,239 | |||||||
| Long-term debt: | |||||||||||
| 3.200% senior notes due July 2026 | $ | - | $ | 2,000 | |||||||
| 5.150% senior notes due March 2027 | 234 | 750 | |||||||||
| 2.250% senior notes due June 2027 | 1,000 | 1,000 | |||||||||
| 1.125% senior notes due July 2027 (Euro-denominated) | 569 | 589 | |||||||||
| 5.450% senior notes due March 2028 | 900 | 900 | |||||||||
| 2.875% senior notes due June 2028 (Euro-denominated) | 852 | 883 | |||||||||
| 5.375% senior notes due August 2028 | 700 | 700 | |||||||||
| 4.200% senior notes due October 2028 | 1,000 | 1,000 | |||||||||
| 3.500% senior notes due July 2029 | 3,000 | 3,000 | |||||||||
| 4.750% senior notes due March 2030 | 850 | 850 | |||||||||
| 2.650% senior notes due June 2030 | 1,000 | 1,000 | |||||||||
| 1.625% senior notes due July 2030 (Euro-denominated) | 569 | 589 | |||||||||
| 3.750% senior notes due October 2030 (Euro-denominated) | 569 | - | |||||||||
| 4.550% senior notes due February 2031 | 1,000 | 1,000 | |||||||||
| 5.350% senior notes due March 2031 | 500 | 500 | |||||||||
| 4.500% senior notes due May 2031 (Euro-denominated) | 910 | 942 | |||||||||
| 3.000% senior notes due July 2031 (British Pound-denominated) | 696 | 709 | |||||||||
| 3.500% senior notes due June 2032 (Euro-denominated) | 880 | 912 | |||||||||
| 5.600% senior notes due March 2033 | 900 | 900 | |||||||||
| 5.625% senior notes due August 2033 | 1,300 | 1,300 | |||||||||
| 5.450% senior notes due March 2034 | 750 | 750 | |||||||||
| 4.250% senior notes due June 2034 (Euro-denominated) | 569 | - | |||||||||
| 5.150% senior notes due August 2034 | 900 | 900 | |||||||||
| 5.250% senior notes due August 2035 | 1,000 | 1,000 | |||||||||
| 4.000% senior notes due June 2036 (Euro-denominated) | 738 | 765 | |||||||||
| 4.400% senior notes due July 2049 | 1,006 | 2,000 | |||||||||
| U.S. dollar commercial paper notes | 1,063 | 326 | |||||||||
| Euro commercial paper notes | 547 | 839 | |||||||||
| Revolving credit facility | 240 | 188 | |||||||||
| Unamortized discount and deferred financing costs | (142) | (169) | |||||||||
| Fair value hedge accounting adjustments | (99) | - | |||||||||
| Finance lease and other financing obligations | 1,808 | 1,635 | |||||||||
| Total long-term debt | $ | 25,809 | $ | 27,758 | |||||||
In June 2026, we completed the public offering and issuance of €1.0 billion of senior notes, comprised of €500 million aggregate principal amount of 3.750% senior notes due in October 2030 and €500 million aggregate principal amount of 4.250% senior notes due in June 2034. We used the net proceeds from this senior notes offering, together with proceeds from
the sale of U.S. dollar commercial paper and cash from operations, to purchase through a cash tender offer and open market repurchase a portion of our outstanding 5.150% senior notes due in March 2027 (the "2027 notes") and 4.400% senior notes due in July 2049 (the "2049 notes"). Upon expiration of the cash tender offer, $1.3 billion of aggregate net book value of the 2027 and 2049 notes was tendered and accepted for purchase for total consideration of $1.2 billion paid to holders. Additionally, $28 million of aggregate net book value of the 2049 notes was retired through an open market repurchase for total consideration of $23 million paid to holders. During the third quarter of 2026, an additional $147 million of aggregate net book value of the 2049 notes was retired through open market repurchases for total consideration of $118 million paid to holders.
In August 2025, we completed the public offering and issuance of $2.0 billion of senior notes, comprised of $1.0 billion aggregate principal amount of 4.550% senior notes due in February 2031 and $1.0 billion aggregate principal amount of 5.250% senior notes due in August 2035. We used the net proceeds from this senior notes offering for general corporate purposes, including the repayment of a portion of our commercial paper notes and for share repurchases.
In May 2025, Fiserv Funding Unlimited Company, an indirect wholly owned subsidiary of Fiserv, Inc., completed the public offering and issuance of €2.175 billion of senior notes, comprised of €750 million aggregate principal amount of 2.875% senior notes due in June 2028 (the "2028 notes"), €775 million aggregate principal amount of 3.500% senior notes due in June 2032 (the "2032 notes") and €650 million aggregate principal amount of 4.000% senior notes due in June 2036 (the "2036 notes"). Fiserv, Inc. has fully and unconditionally guaranteed these notes on a senior unsecured basis. We used the net proceeds from this senior notes offering for general corporate purposes, including the repayment of a portion of our commercial paper notes, 3.850% senior notes due in June 2025 and 2.250% senior notes due in July 2025.
At September 30, 2026, our debt consisted primarily of fixed-rate senior notes in the aggregate principal amount of $22.4 billion. Interest on our U.S. dollar-denominated senior notes is paid semi-annually, while interest on our Euro and British Pound-denominated senior notes is paid annually. Interest on our revolving credit facility and commercial paper notes is generally paid weekly, or more frequently on occasion. A portion of our senior notes, in the aggregate notional amount of $1.5 billion, are designated as fair value hedges through fixed-to-floating interest rate swap contracts, which economically changes the hedged notes to variable rate debt. The fair value adjustments associated with our hedged senior notes, as reflected in the table above, are offset by the change in the fair value of the fixed-to-floating interest rate swap contracts.
At September 30, 2026, the 5.150% senior notes due in March 2027, 2.250% senior notes due in June 2027, and 1.125% senior notes due in July 2027 were classified in the consolidated balance sheet as long-term, as we have the intent to refinance this debt on a long-term basis, and the ability to do so under our commercial paper programs and revolving credit facility. Outstanding borrowings under the commercial paper programs are also classified in the consolidated balance sheet as long-term, as we have the intent to refinance this commercial paper on a long-term basis through the continued issuance of new commercial paper upon maturity, and also have the ability to refinance such commercial paper under our revolving credit facility.
Variable Rate Debt
Our variable rate debt consisted of the following at September 30, 2026:
| (In millions) | Maturity | Weighted-Average Interest Rate | Outstanding Borrowings | ||||||||||||||
| Foreign lines of credit | various | 16.548% | $ | 641 | |||||||||||||
| U.S. dollar commercial paper notes | various | 4.102% | 1,063 | ||||||||||||||
| Euro commercial paper notes | various | 2.747% | 547 | ||||||||||||||
| Revolving credit facility | August 2030 | 4.895% | 240 | ||||||||||||||
| Total variable rate debt | 7.082% | $ | 2,491 | ||||||||||||||
We maintain various short-term lines of credit and other borrowing arrangements with foreign banks and alliance partners primarily to fund merchant settlement advances associated with operations in Latin America through our settlement anticipation program. The following table provides a summary of the outstanding borrowings and weighted average interest rates of our foreign lines of credit and other borrowing arrangements by country at September 30, 2026:
| Weighted-Average Interest Rate |
Outstanding Borrowings
(In millions)
|
||||||||||
|
Argentina
|
24.607 | % | $ | 243 | |||||||
|
Brazil
|
14.200 | % | 262 | ||||||||
|
Uruguay and Other
|
6.716 | % | 136 | ||||||||
|
Total
|
16.548 | % | $ | 641 | |||||||
We offer advanced funding of settlement activity associated with operations in Latin America through our settlement anticipation program by utilizing local operating cash and various short-term lines of credit. We sell, without recourse, certain of these settlement anticipation cash advances within our Latin American operations. In the event we are unable to continue to borrow in the local Latin America markets, we may fund future advances with our consolidated cash and cash equivalents and available capacity under our revolving credit facility.
We maintain unsecured U.S. dollar and Euro commercial paper programs with various maturities generally ranging from one day to four months. Outstanding borrowings under our commercial paper programs bear interest based on the prevailing rates at the time of issuance.
We also maintain a senior unsecured multicurrency revolving credit facility, which matures in August 2030 and provides for a maximum aggregate principal amount of availability of $8.0 billion. Borrowings under the credit facility bear interest at a variable base rate, determined by the term and currency of the borrowing, plus a specified margin based on our long-term debt rating. Outstanding borrowings under the revolving credit facility were $240 million at September 30, 2026. We are required to pay a facility fee based on the aggregate commitments in effect under the credit agreement from time to time.
Debt Covenants and Compliance
The indentures governing our senior notes contain covenants that, among other matters, limit (i) our ability to consolidate or merge with or into, or convey, transfer or lease all or substantially all of our properties and assets to, another person, (ii) our and certain of our subsidiaries' ability to create or assume liens, and (iii) our and certain of our subsidiaries' ability to engage in sale and leaseback transactions. We may, at our option, redeem the senior notes, in whole or in part, at any time and from time to time, at the applicable redemption price.
The revolving credit facility contains various restrictions and covenants that require us to, among other things, limit our consolidated indebtedness as of the end of each fiscal quarter to no more than 3.75 times our consolidated net income (loss) before interest, taxes, depreciation, amortization, non-cash charges and expenses and certain other adjustments during the period of four fiscal quarters then ended, subject to certain exceptions.
During the first nine months of 2026, we were in compliance with all financial debt covenants. Our ability to meet future debt covenant requirements will depend on our continued ability to generate earnings and cash flows. We expect to remain in compliance with all terms and conditions associated with our outstanding debt, including financial debt covenants.
Debt Guarantees
We maintain noncontrolling ownership interests in Sagent M&C, LLC ("Sagent") and defi SOLUTIONS Group, LLC ("defi") (collectively, the "Lending Joint Ventures") and have previously guaranteed the debt of the Lending Joint Ventures. In September 2026, defi refinanced its then existing debt facilities with a syndicate of banks, which provided for the full termination and release of the Fiserv, Inc. debt guarantee. Additionally, in September 2026, we extended our debt guarantee of Sagent's existing debt facilities (which currently mature in April 2027) through March 2030. Sagent maintains a variable-rate term loan facility with outstanding borrowings of $219 million in senior unsecured debt at September 30, 2026 and a variable-rate revolving credit facility with a borrowing capacity of $43 million with a syndicate of banks. There were $29 million of outstanding borrowings on the revolving credit facility at September 30, 2026.
We maintained a liability of $2 million at September 30, 2026 for the estimated fair value of our non-contingent obligation to stand ready to perform over the term of the Sagent guarantee arrangement, which will be amortized in future periods over the contractual term of the related debt. In addition, we maintained a contingent liability of $2 million at September 30, 2026,
representing the current expected credit losses to which we are exposed. This contingent liability is estimated based on certain financial metrics of Sagent and historical industry data, which is used to develop assumptions of the likelihood the guaranteed party will default and the level of credit losses in the event a default occurs. We have not made any payments under the guarantee, nor have we been called upon to do so, and do not anticipate that Sagent will fail to fulfill its existing debt obligation.
Supplemental Guarantor Information
Fiserv, Inc. has fully, unconditionally and solely guaranteed on a senior unsecured basis the 2028 notes, 2032 notes and 2036 notes (the "Guaranteed Notes") issued by Fiserv Funding Unlimited Company (the "Issuer"), an indirect wholly owned subsidiary of Fiserv, Inc. No other subsidiary of Fiserv, Inc. or the Issuer has guaranteed the Guaranteed Notes. The Guaranteed Notes are the Issuer's unsecured senior obligations and rank equally with other unsecured senior indebtedness of the Issuer from time to time outstanding. The guarantees of Fiserv, Inc. are unsecured senior obligations of Fiserv, Inc. and rank equally with other unsecured senior indebtedness of Fiserv, Inc. from time to time outstanding.
Cash and Cash Equivalents
Investments, exclusive of settlement assets, with original maturities of 90 days or less that are readily convertible to cash are considered to be cash equivalents as reflected within our consolidated balance sheets.
The table below details our cash and cash equivalents held at:
| (In millions) | September 30, 2026 | December 31, 2025 | |||||||||
| Available | $ | 193 | $ | 342 | |||||||
|
Unavailable (1)
|
352 | 456 | |||||||||
| Total | $ | 545 | $ | 798 | |||||||
(1)Represents cash associated with intermediary settlement advances; wholly owned entities subject to regulatory requirements; cash in transit; or cash in our joint ventures that is not available to fund operations outside of the respective entities unless approved by the board of directors of the relevant entity.
Fiserv Inc. published this content on November 04, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on November 04, 2026 at 12:22 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]