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. With respect to business performance, I'll start with Merchant Solutions, where we saw solid growth in Clover GPV, supported by good execution against our strategic initiatives and a stable macro. Clover VaaS revenue represented 27% of Clover revenue in Q1, growing 18% from a year ago, driven by software and Clover Capital.
While anticipation lending volumes in Argentina remained strong, lower inflation and interest rates in Argentina were a revenue headwind to Merchant Solutions in Q1. I would note that this revenue softness was largely offset by lower interest expense below the line. Our preliminary April merchant volume growth, including Clover GPV, remained solid around Q1 levels. Our broadening global releases and customer go-lives are driving Commerce Hub transaction growth, which was up nearly 200% in Q1.
In Financial Solutions, we saw solid underlying business volume growth, particularly in Finxact and our payments businesses, excluding Bill Pay. While core bank account and revenue attrition remain above our long-term trend, we've seen early signs that our client service initiatives have been well-received. Key new business wins in Financial Solutions included OceanFirst Bank, which is a $14.5 billion Northeast regional bank that is growing rapidly through its announced acquisition of Flushing Bank. It extended its Premier core and surrounds agreement with us, adding digital payments and committing to deploy CoreAdvance.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year 2026 guidance | FY2026 | reiterated (unchanged) |
| Adjusted effective tax rate | FY2026 | 19%-19.5% (unchanged) |
| Clover revenue growth | FY2026 | low double digits |
| Clover GPV growth (ex-gateway) | FY2026 | 10%-15% |
| Debt to adjusted EBITDA (gross) | FY2026 year-end | approximately 3x (expected to decline) |
| Metric | YoY | Note |
|---|---|---|
| Total adjusted revenue | -2.4% to $4.68B | lapping higher non-recurring revenue from a year ago |
| Total organic revenue | -3.6% | non-recurring revenue comparatives |
| Adjusted EPS | $1.79 | includes $0.17 positive impact from an 11% Q1 tax rate (timing-related valuation allowance release) |
| Merchant Solutions organic revenue | -1% (adjusted flat) | fully anniversarying the CCB transaction and Argentina headwind |
| Clover revenue | +6% (mid-teens ex non-recurring) | non-recurring hardware revenue in prior-year period; payment processing grew 10% |
| Merchant Solutions adjusted operating income | -23% to $626M (26.4% margin) | investment mix and revenue dynamics |
| Financial Solutions organic revenue | -6% (adjusted -5%) | prior actions, non-recurring prior-year revenue, and elevated attrition |
| Financial Solutions adjusted operating income | -24% to $877M (38.1% margin vs 47.5%) | incremental investment expense and revenue decline |
| Free cash flow | $259M | typical seasonality with Q1 as the lowest free cash flow quarter |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| One Fiserv action plan execution | — | Progress visible in KPIs (inquiry resolution time down 27%, high-impact incidents down ~60%) but not yet in reported financials; 2026 framed as a transition year | Up |
| Core banking attrition / client service | above target, result of actions over prior years | Still above long-term trend (core accounts -2% YoY) but early signs the curve is bending via added client coverage, AI, and supporting all cores | Stable |
| Clover growth and back-book conversion | — | Solid GPV growth; non-Clover-to-Clover conversion deliberately modest and customer-centric, low-end guide assumes minimal conversion; two new verticals (PracticePay healthcare, professional services) launched | Up |
| AI initiatives | — | Focused on four areas including new revenue/TAMs and agentic commerce/banking; governed AI operating layer for FIs to debut at Investor Day with two pilot institutions live | Up |
| Finxact / modern core | — | Accounts and positions up over 70%; named Best SaaS for FinTech; positioned as largest modern core platform by accounts served | Up |
| Argentina macro | strong anticipation lending volumes | Lower inflation and interest rates a revenue headwind to Merchant, largely offset by lower interest expense below the line | Down |