Fiserv, Inc.

Q2 performance broadly in-line; recurring revenue held up - Total company Q2 adjusted revenue: $4.96B (-4% y/y adjusted, -5% y/y organic); first half adjusted revenue down ~2.8% within guidance. - Recurring revenue +2% y/y, ~84% of adjusted revenue (operator said 85% approx. in remarks). - Adjusted operating margin: 31.8% (first half: 30.8%); adjusted EPS: $1.84; free cash flow (FCF): $1.1B (112% conversion in Q2).

Key headwinds driving the updated 2H/2026 outlook (not “structural,” but meaningful) - Management cut/updated 2H growth expectations and therefore full-year organic revenue to -1% to flat and adjusted operating margin to 31.0%–31.5%. - Drivers called out by CFO/CEO: - Argentina anticipation/macro volatility (inflation/interest rates weakening client anticipation revenue): ~90 bps y/y revenue headwind in Q2 and ~60 bps margin headwind. - Slower ramp of newly contracted revenue / enterprise client implementations (timing shifts out of quarters). - Incremental hardware headwinds tied partly to post-peak hardware mix from prior years. - Incremental tech/cyber/infrastructure investments (primarily for Financial Solutions). - Framing: delays are mostly timing-related (deals still expected to happen; revenue is shifted), and CEO emphasized this should be a transition-year issue.

What management expects for 2026 (headline forecasts) - Organic revenue 2026: -1% to flat. - Adjusted revenue 2026: down 1.5% to down 0.5% (includes estimated impacts). - CFO noted ~1 point of adjusted-revenue impact from student loan servicing/ATM divestiture reduction, partially offset by lower FX impact. - Adjusted operating margin 2026: ~31.0%–31.5% (explicit drivers): - ~50 bps from higher technology/infrastructure spend, - ~50 bps from Argentina anticipation, - +150–200 bps of impact from lower revenue/less operating leverage. - Adjusted EPS 2026: $7.20–$7.40. - Cash: FCF conversion ~90% for the year (target maintained), capex remains high single digits as % of revenue.