Fiserv, Inc.

Q2 performance broadly on-plan; cash flow strong - Total company Q2 adjusted revenue: $4.96B (-4% YoY adjusted; -5% organic). - Growth profile: recurring revenue +2%, representing ~84% of adjusted revenue (supports durability). - Adjusted operating margin: 31.8%; adjusted EPS: $1.84. - Free cash flow (FCF): $1.1B with 112% conversion (timing + working capital management).

Key update: guidance reset for 2H—“not structural,” but near-term headwinds - Updated full-year organic revenue guidance: -1% to flat (previously higher growth expectations). - Adjusted operating margin (full year): 31% to 31.5%. - Rationale (2H-focused headwinds called out by management): - ~1 pt from slower enterprise/client implementation ramps (timing). - ~1 pt from hardware/non-core & other revenue headwinds. - Argentina anticipation impact: macro volatility (in Q2 alone: 90 bps headwind to adjusted revenue; 60 bps to margin). - ~1 pt from divestitures (mostly timing/mechanical for recognition; management says no organic impact from the divestitures). - Management asserts this is a transition-year / timing issue, expecting improvement into Q3 and step-up in Q4 toward medium-term exit trends.

Clover and Merchant momentum: decent growth, but expectations tempered by anticipation + hardware - Clover GPV +9% reported (+11% ex-gateway conversion); Clover revenue +2% in Q2. - Adjusted view: excluding higher nonrecurring and anticipation, Clover growth would have been ~11% and ~13%, respectively. - For 2026, management now expects reported Clover revenue growth in mid-single digits, with medium-term Clover growth targeted at 15%–20%.