Our earnings release and supplemental materials for the quarter are available on the Investor Relations section of fiserv.com. You should refer to our earnings release for a discussion of these risk factors. By now you've seen our results and revised guidance for the year. Second, we have established a new revenue and earnings baseline consisting of high-quality, structural, largely recurring revenues driven by meeting our clients' needs and aspirations.
While this pivot will negatively impact near-term results, our team has embraced this change and it will best position us for predictable and sustainable growth and margins. Critical software solutions ignite our gateways and orchestration layers, facilitate embedded finance, and improve our operations. When combined with operating leverage, significant free cash flow generation, and highly disciplined capital allocation, this will ultimately support double digit adjusted EPS growth and present an attractive constant compounder investment case. One of the key takeaways from our analysis is that Fiserv's growth and margin targets need to be reset.
While we have previously sized the impact of excess Argentinian interest rates and inflation on our organic growth, today we're providing a holistic view of how Argentina has impacted Fiserv's performance. Specifically, Argentina contributed over 5 percentage points to our 12% organic growth rate in 2023 and roughly 10 percentage points to our 16% organic growth in 2024. Therefore, excluding Argentina, the company's overall organic revenue growth rate was in the mid single digits in both 2023 and 2024. Year to date, Argentina's organic growth rate is 56%, adding roughly 2 percentage points to our overall organic growth rate of just over 5%.
| Metric | Period | Current guidance |
|---|---|---|
| Capital expenditures | FY2025 | ~$1.8 billion (~9% of revenue) (Higher, tied to One Fiserv) |
| Free cash flow | FY2025 | ~$4.25 billion (Lowered on revised earnings and higher capex) |
| Clover revenue growth | Q4 2025 | ~10% (reflecting pricing reversals; high teens excluding them) |
| Clover revenue growth | FY2026 | Low teens range (preliminary) |
| Adjusted operating margin | FY2026 | ~mid-30s, roughly 33%-35% range, troughing in Q1 |
| Financial Solutions organic growth | FY2026 | Higher end of low single digit range |
| Metric | YoY | Note |
|---|---|---|
| Total adjusted revenue (Q3) | +1% to $4.9 billion | Merchant strength offset by Financial Solutions decline and Argentina FX |
| Total organic revenue (Q3) | +1% | Slowing Argentina cyclical growth and Financial Solutions softness |
| Adjusted operating income (Q3) | -7% to $1.8 billion | Margin pressure of 320 basis points from cost and revenue mix |
| Adjusted EPS (Q3) | -11% to $2.04 | Argentina FX and interest headwinds partly offset by JV gain |
| Clover revenue (Q3) | +26% | Value-added solutions and GPV growth, with ~100 bps Argentina FX drag |
| Financial Solutions organic revenue (Q3) | -3% | Lower periodic license revenue and difficult comparisons in digital payments and processing |
| Merchant Solutions adjusted operating income (Q3) | +3% to $962 million | Higher sales, marketing, distribution, data processing, and D&A costs offset by JV gain |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Strategic reset / baseline | 9%-12% medium-term organic growth target (set 2023) | Reset to mid-single-digit structural growth, near low end, with a path to acceleration over time | Lowered |
| Argentina cyclical contribution | Sized excess interest/inflation impact previously | Disclosed Argentina added ~5 points to 2023 and ~10 points to 2024 organic growth; ex-Argentina growth was mid-single digits | Normalizing |
| One Fiserv / AI | — | New action plan applying generative and agentic AI across software, operations, and internal functions, including a project with IBM | New |
| Clover | Strong growth asset | Reversing certain short-term pricing changes; expanding verticals, partnerships (Homebase, ADP), and international (Brazil); focus on client experience and AI | Continued investment |
| Core banking consolidation | — | Consolidating cores from 16 to 5; execution was imperfect and course-corrected; expected to be low-single-digit growth long term | In progress |
| Margin trajectory | — | Trough in Q1 2026, building back to roughly 2025 run-rate levels by year-end with more normalized expansion thereafter | Rebuilding |