FISERV INC

Previous wording

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 attract and retain key personnel; adverse impacts from currency exchange rates or currency controls; changes in corporate tax and interest rates; and other factors identified 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.

Current wording

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 attract and retain key personnel; adverse impacts from currency exchange rates or currency controls; changes in corporate tax and interest rates; 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.

Previous wording

•Overview. This section contains background information on our company and the products and services that we provide, acquisitions, 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.

Current wording

•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.

Previous wording

•Results of operations. This section contains an analysis of our results of operations presented in the accompanying unaudited consolidated statements of income by comparing the results for the three months ended March 31, 2026 to the comparable period in 2025.

Current wording

•Results of operations. This section contains an analysis of our results of operations presented in the accompanying unaudited consolidated statements of income by comparing the results for the three and six months ended June 30, 2026 to the comparable period in 2025.

Previous wording

We are a leading global provider of payments and financial services technology solutions. We serve clients around the globe, including merchants, banks, credit unions, other financial institutions, corporate and public sector clients. We help clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover®cloud-based point-of-sale (“POS”) and 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 Financial Solutions (“Financial”) segment.

Current wording

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 Financial Solutions (“Financial”) segment.

Previous wording

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; POS devices; and pay-by-bank solutions. The business lines aggregated within the Merchant segment consist of the following:

Current wording

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:

Previous wording

•Issuing – provides credit card processing services; prepaid card processing services; card production services; print services; government payment processing; and student loan processing

Current wording

•Issuing – provides credit card processing services; prepaid card processing services; card production services; print services; government payment processing; and student loan servicing

Previous wording

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 gains or losses on sales of businesses, certain assets or investments; costs associated with acquisition activity; certain services revenue associated with various dispositions; expenses associated with our One Fiserv transformation initiative; and postage reimbursements.

Current wording

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 gains or losses on sales of businesses, certain assets or investments; costs associated with acquisition and divestiture activity; expenses associated with our One Fiserv transformation initiative; postage reimbursements; and gains on early debt extinguishment associated with refinancing activities.

Previous wording

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 pre-eminent small business operating platform through Clover®; modernizing existing platforms and launching innovative solutions to drive value for our clients, including embedded finance and stablecoin; increasing efficiency enabled by AI; and employing disciplined capital allocation for the long-term.

Current wording

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.

Previous wording

Global macroeconomic conditions, including changing interest rates; inflation; disruptions in the global supply chain; changes in consumer spending; 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.

Current wording

Global macroeconomic conditions, including changing interest rates; inflation; disruptions in the global supply chain; changes in consumer spending, including a rise in fuel prices in the first half of 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.

Previous wording

The following table presents certain amounts included in our consolidated statements of income, 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, expenses associated with our One Fiserv transformation initiative, net gain on sale of assets, and foreign currency fluctuations.

Current wording

The following tables present certain amounts included in our consolidated statements of income, 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, expenses associated with our One Fiserv transformation initiative, net gains or losses on sale of assets, foreign currency fluctuations, and gains on early debt extinguishment associated with refinancing activities.

Previous wording

(1)Represents the basis point decline in operating margin.

Current wording

(1)Represents the basis point change in operating margin.

Previous wording

Operating margin percentages are calculated using actual, unrounded amounts.

Current wording

Revenue and operating income (loss) change percentages, as well as operating margin percentages are calculated using actual, unrounded amounts.

Previous wording

Revenue in our Merchant segment was flat in the first quarter of 2026 compared to the first quarter of 2025. Small Business contributed 1% growth to Merchant segment revenue in the first quarter of 2026, primarily driven by volume growth, including from our Clover POS and business management platform, as well as the expansion of our merchant relationships through value-added services. Enterprise contributed slight growth to Merchant segment revenue in the first quarter of 2026, primarily driven by transaction growth, offset by a decrease in data and analytics sales. Revenue in Small Business and Enterprise were negatively impacted by a decrease in anticipation revenue associated with our operations in Latin America, caused by lower inflation and interest rates. Processing contributed a 1% decline to Merchant segment revenue in the first quarter of 2026, primarily driven by a decrease in hardware sales.

Current wording

Revenue in our Merchant segment decreased $36 million, or 1%, in the second quarter of 2026 and $35 million, or 1%, in the first six months of 2026 compared to the prior year periods. Small Business contributed a 1% decline to Merchant segment revenue in the second quarter of 2026 and its contribution was flat in the first six months of 2026; Enterprise’s contribution was flat in both the second quarter and first six months of 2026; and Processing contributed a 1% decline to Merchant segment revenue in both the second quarter and first six months of 2026. The decrease in revenue in our Merchant segment in the second quarter and first six months of 2026 was primarily due to a $45 million and $72 million decrease, respectively, in anticipation revenue in Argentina, attributed to lower inflation and interest rates, as well as a decline in hardware revenue in both periods. Revenue in our Merchant segment was also negatively impacted by lower data and analytics sales across Small Business, Enterprise and Processing compared to the prior year periods. The overall decrease in revenue in our Merchant segment was partially offset by Small Business volume growth, including from our Clover POS and business management platform.

Previous wording

Revenue in our Financial segment decreased $115 million, or 5%, in the first quarter of 2026 compared to the first quarter of 2025. Digital Payments and Issuing each contributed a 2% decline to Financial segment revenue in the first quarter of 2026, while Banking contributed a 1% decline to Financial segment revenue. Revenue in our Financial segment in the first quarter of 2026 was negatively impacted by a decrease in data and analytics sales and license revenue compared to the prior year period, primarily within Digital Payments and Issuing.

Current wording

Revenue in our Financial segment decreased $197 million, or 8%, in the second quarter of 2026 and $312 million, or 6%, in the first six months of 2026 compared to the prior year periods. Digital Payments contributed a 2% decline to Financial segment revenue in both the second quarter and first six months of 2026; Issuing contributed a 4% and 3% decline in the second quarter and first six months of 2026, respectively; and Banking contributed a 2% and 1% decline to Financial segment revenue in the second quarter and first six months of 2026, respectively. Revenue in our Financial segment in the second quarter and first six months of 2026 was negatively impacted by lower data and analytics sales and license revenue compared to the prior year periods, primarily within Digital Payments and Issuing.

Previous wording

Revenue at Corporate and Other increased $11 million, or 3%, in the first quarter of 2026 compared to the first quarter of 2025, due to an increase in postage revenue.

Current wording

Revenue at Corporate and Other increased $9 million, or 3%, in the second quarter and increased $20 million, or 3%, in the first six months of 2026 compared to the prior year periods, due to an increase in postage revenue.

Previous wording

Total expenses increased $374 million, or 10%, in the first quarter of 2026 compared to the first quarter of 2025. Total expenses as a percentage of total revenue increased 890 basis points to 81.7% in the first quarter of 2026 compared to the prior year period. Total expenses as a percentage of total revenue were impacted by higher costs to support the client experience, including personnel costs of approximately 480 basis points; costs associated with our strategic One Fiserv transformation program of approximately 280 basis points; and data processing costs of approximately 230 basis points. Total expenses as a percentage of total revenue in the first quarter of 2026 was favorably impacted by a net gain on the sale-leaseback of certain facilities of $83 million.

Current wording

Total expenses increased $457 million, or 12%, in the second quarter of 2026 and $831 million, or 11%, in the first six months of 2026 compared to the prior year periods. Total expenses as a percentage of total revenue increased to 80.8% in the second quarter of 2026 and to 81.3% in the first six months of 2026 compared to 69.3% and 71.0%, respectively, in the prior year periods. Total expenses as a percentage of total revenue were impacted by higher costs to support the client experience, including personnel costs of approximately 580 basis points and 530 basis points; costs associated with our strategic One Fiserv transformation program of approximately 350 basis points and 320 basis points; and data processing costs, including increased technology infrastructure expenses, of approximately 280 basis points and 260 basis points in the second quarter and first six months of 2026, respectively. Total expenses as a percentage of total revenue in the first six months of 2026 was favorably impacted by a net gain on the sale-leaseback of certain facilities of $83 million.

Previous wording

Cost of processing and services as a percentage of processing and services revenue increased to 39.6% in the first quarter of 2026 compared to 34.3% in the first quarter of 2025. Cost of processing and services as a percentage of processing and services revenue was negatively impacted by higher personnel costs of approximately 270 basis points; costs associated with our strategic One Fiserv transformation program of approximately 160 basis points; and higher data processing costs of approximately 150 basis points.

Current wording

Cost of processing and services as a percentage of processing and services revenue increased to 39.7% in the second quarter of 2026 compared to 32.8% in the second quarter of 2025 and increased to 39.7% in the first six months of 2026 compared to 33.5% in the first six months of 2025. Cost of processing and services as a percentage of processing and services revenue was negatively impacted by higher personnel costs of approximately 330 basis points and 300 basis points; costs associated with our strategic One Fiserv transformation program of approximately 180 basis points and 190 basis points; and higher data processing costs, including increased technology infrastructure expenses, of approximately 200 basis points and 180 basis points in the second quarter and first six months of 2026, respectively.

Previous wording

Cost of product as a percentage of product revenue increased to 72.8% in the first quarter of 2026 compared to 63.0% in the first quarter of 2025. Cost of product as a percentage of product revenue in the first quarter of 2026 was negatively impacted by a decrease in total company high margin data and analytics sales and license revenue compared to the prior year period.

Current wording

Cost of product as a percentage of product revenue increased to 68.9% in the second quarter of 2026 compared to 57.3% in the second quarter of 2025 and increased to 70.8% in the first six months of 2026 compared to 60.0% in the first six months of 2025. Cost of product as a percentage of product revenue in the second quarter and first six months of 2026 was negatively impacted by higher personnel costs of approximately 260 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.

Previous wording

Selling, general and administrative expenses as a percentage of total revenue increased to 37.5% in the first quarter of 2026 compared to 32.8% in the first quarter of 2025. Selling, general and administrative expenses as a percentage of total revenue in the first quarter of 2026 was negatively impacted by higher personnel costs of approximately 200 basis points; costs associated with our strategic One Fiserv transformation program of approximately 150 basis points; and higher payments to distribution partners of approximately 100 basis points.

Current wording

Selling, general and administrative expenses as a percentage of total revenue increased to 35.7% in the second quarter of 2026 compared to 31.0% in the second quarter of 2025 and increased to 36.6% in the first six months of 2026 compared to 31.9% in the first six months of 2025. Selling, general and administrative expenses as a percentage of total revenue was negatively impacted by higher personnel costs of approximately 230 basis points and 220 basis points; costs associated with our strategic One Fiserv transformation program of approximately 200 basis points and 160 basis points; and higher payments to distribution partners of approximately 130 basis points and 110 basis points in the second quarter and first six months of 2026, respectively.

Previous wording

The first quarter of 2026 included a net gain on the sale-leaseback of certain facilities of $83 million.

Current wording

The first six months of 2026 included a net gain on the sale-leaseback of certain facilities of $83 million.

Previous wording

Total operating income decreased $477 million, or 34%, in the first quarter of 2026 compared to the first quarter of 2025. Total operating margin decreased 890 basis points to 18.3% in the first quarter of 2026 compared to the prior year period. Total operating income and total operating margin were negatively impacted by a decrease in high margin data and analytics sales and license revenue, along with higher costs to support the client experience, including personnel and data processing costs.

Current wording

Total operating income decreased $681 million, or 40%, in the second quarter of 2026 and $1.2 billion, or 37%, in the first six months of 2026 compared to the prior year periods. Total operating margin decreased to 19.2% and 18.7% in the second quarter and first six months of 2026 compared to 30.7% and 29.0%, respectively, in the prior year periods. Total operating income and total operating margin in both the second quarter and first six months of 2026 were negatively impacted by a decrease in high margin license revenue and data and analytics sales, along with higher costs to support the client experience, including personnel costs, costs associated with our strategic One Fiserv transformation program, and data processing costs, including increased technology infrastructure expenses.

Previous wording

Operating income in our Merchant segment decreased $184 million, or 23%, in the first quarter of 2026 compared to the first quarter of 2025. Operating margin decreased 780 basis points to 26.4% in the first quarter of 2026 compared to the prior year period. Operating income and operating margin in our Merchant segment were negatively impacted by a decrease in high margin data and analytics sales; higher payments to distribution partners; and higher personnel costs in the first quarter of 2026 compared to the first quarter of 2025.

Current wording

Operating income in our Merchant segment decreased $133 million, or 14%, in the second quarter of 2026 and $317 million, or 18%, in the first six months of 2026 compared to the prior year periods. Operating margin decreased to 30.0% and 28.3% in the second quarter and first six months of 2026 compared to 34.6% and 34.4%, 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 a decrease in high margin data and analytics sales in both the second quarter and first six months of 2026. Operating income and operating margin in our Merchant segment were also negatively impacted by higher payments to distribution partners in both the second quarter and first six months of 2026.

Previous wording

Operating income in our Financial segment decreased $271 million, or 24%, in the first quarter of 2026 compared to the first quarter of 2025. Operating margin decreased 940 basis points to 38.1% in the first quarter of 2026 compared to the prior year period. The decrease in operating income and operating margin in our Financial segment in the first quarter of 2026 was primarily due to a decrease in high margin data and analytics sales and license revenue compared to the first quarter of 2025, along with higher personnel and data processing costs.

Current wording

Operating income in our Financial segment decreased $332 million, or 27%, in the second quarter of 2026 and $603 million, or 25%, in the first six months of 2026 compared to the prior year periods. Operating margin decreased to 38.7% and 38.4% in the second quarter and first six months of 2026 compared to 48.7% and 48.1%, respectively, in the prior year periods. The decrease in operating income and operating margin in our Financial segment in the second quarter and first six months of 2026 was primarily due to a decrease in high margin license revenue and data and analytics sales and higher personnel costs.

Previous wording

The operating loss in Corporate and Other increased $22 million in the first quarter of 2026 compared to the first quarter of 2025. The operating loss in the first quarter of 2026 was negatively impacted by $142 million of costs associated with our strategic One Fiserv transformation program, partially offset by a net gain of $83 million on the sale-leaseback of certain facilities.

Current wording

The operating loss in Corporate and Other increased $216 million in the second quarter of 2026 and increased $238 million in the first six months of 2026 compared to the prior year periods. The operating loss in the second quarter and first six months of 2026 included costs associated with our strategic One Fiserv transformation program of $187 million and $329 million, respectively. The operating loss in the first six months of 2026 was partially offset by a net gain of $83 million on the sale-leaseback of certain facilities.

Previous wording

Interest expense, net increased $16 million, or 5%, in the first quarter of 2026 compared to the first quarter of 2025 due to debt financing activities, including our public offering and issuances of $2.0 billion and €2.175 billion of senior notes in August 2025 and May 2025, respectively, as well as an increase in finance lease and other financing obligations, partially offset by lower variable weighted average interest rates on our foreign lines of credit.

Current wording

Interest expense, net increased $5 million, or 1%, in the second quarter of 2026 and $21 million, or 3%, in the first six months of 2026 compared to the prior year periods due to debt financing activities, including our public offering and issuances of $2.0 billion and €2.175 billion of senior notes in August 2025 and May 2025, respectively, as well as an increase in finance lease and other financing obligations, partially offset by 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 in the second quarter and first six months of 2026 also includes the recognition of $22 million of unamortized losses on treasury lock agreements associated with a portion of our senior notes due in July 2049 that were early extinguished during the second quarter of 2026.

Previous wording

Other income (expense), net was $22 million and $(18) million in the first quarter of 2026 and 2025, respectively. Other income (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 in highly inflationary economies, including Argentina, resulted in foreign currency exchange gains (losses) of $21 million and $(18) million for the three months ended March 31, 2026 and 2025, respectively.

Current wording

Other expense, net decreased $15 million, or 38%, in the second quarter of 2026 and $55 million, or 96%, in the first six 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 $30 million and $46 million for the three months ended June 30, 2026 and 2025, and $9 million and $64 million for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

The income tax provision as a percentage of income before income taxes and income (loss) from investments in unconsolidated affiliates was 4.0% and 18.2% for the three months ended March 31, 2026 and 2025, respectively. The effective income tax rate for the three months ended March 31, 2026 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. The net impact of these items in the first quarter of 2026 resulted in a lower effective income tax rate compared to the statutory tax rate. The effective income tax rate for the three months ended March 31, 2025 included discrete tax benefits from share-based awards, resulting in a lower effective income tax rate compared to the statutory income tax rate.

Current wording

The income tax provision as a percentage of income before income taxes and income (loss) from investments in unconsolidated affiliates was 20.2% and 19.0% for the three months ended June 30, 2026 and 2025, and 13.2% and 18.6% for the six months ended June 30, 2026 and 2025, respectively. The effective income tax rate for the six months ended June 30, 2026 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. The net impact of these items resulted in a lower effective income tax rate compared to the statutory tax rate and prior year period. The effective income tax rate for the first six months ended June 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.

Previous wording

Our share of income (loss) from unconsolidated affiliates accounted for using the equity method is reported as income (loss) from investments in unconsolidated affiliates, and the related tax benefit is reported within the income tax provision in the consolidated statements of income. Income (loss) from investments in unconsolidated affiliates, including acquired intangible asset amortization from valuations in purchase accounting, was $4 million and $(8) million in the first quarter of 2026 and 2025, respectively.

Current wording

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. Income (loss) from investments in unconsolidated affiliates, including acquired intangible asset amortization from valuations in purchase accounting, was $11 million and $(16) million in the second quarter of 2026 and 2025, and $15 million and $(24) million in the first six months of 2026 and 2025, respectively. Loss from investments in unconsolidated affiliates in the second quarter and first six months of 2025 included $16 million of non-cash impairment charges.

Previous wording

Net Income (Loss) Attributable to Noncontrolling Interests

Current wording

Net Income Attributable to Noncontrolling Interests

Previous wording

Net income (loss) attributable to noncontrolling interests relates to the minority partners’ share of the net income or loss in our consolidated subsidiaries and was $2 million and $(3) million in the first quarter of 2026 and 2025, respectively.

Current wording

Net income attributable to noncontrolling interests relates to the minority partners’ share of the net income in our consolidated subsidiaries and was $3 million and $4 million in the second quarter of 2026 and 2025, and $5 million and $1 million in the first six months of 2026 and 2025, respectively.

Previous wording

Net income attributable to Fiserv, Inc. per share-diluted was $1.07 and $1.51 in the first quarter of 2026 and 2025, respectively, driven by the impacts to net income attributable to Fiserv, Inc. described above. Net income attributable to Fiserv, Inc. per share-diluted also includes the impact of a reduction in our diluted weighted average outstanding shares due to our share repurchase program (3.3 million and 9.7 million shares of common stock were repurchased in the first quarter of 2026 and 2025, respectively).

Current wording

Net income attributable to Fiserv, Inc. per share-diluted was $1.17 and $1.86 in the second quarter of 2026 and 2025, and was $2.24 and $3.36 in the first six months of 2026 and 2025, respectively, driven by the impacts to net income attributable to Fiserv, Inc. described above. Net income attributable to Fiserv, Inc. per share-diluted also includes the impact of a reduction in our diluted weighted average outstanding shares due to our share repurchase program (1.7 million and 12.2 million shares of common stock were repurchased in the second quarter of 2026 and 2025, and 5.0 million and 21.9 million shares of common stock were repurchased in the first six months of 2026 and 2025, respectively).

Previous wording

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 $829 million, proceeds from the issuance of U.S. dollar and Euro commercial paper, and available capacity under our revolving credit facility of $3.8 billion (net of $221 million of outstanding revolver borrowings and $4.0 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 March 31, 2026.

Current wording

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 $627 million, proceeds from the issuance of U.S. dollar and Euro commercial paper, and available capacity under our revolving credit facility of $4.2 billion (net of $3.8 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 June 30, 2026.

Previous wording

Our operating cash flow was $599 million in the first three months of 2026, a decrease of 8% compared with $648 million in the first three months of 2025. The decrease was primarily attributable to lower profitability, partially offset by a lower use of working capital compared to the first three months of 2025, including trade accounts receivable collections and timing of prepaid expenses.

Current wording

Our operating cash flow was $2.1 billion in the first six months of 2026, a decrease of 10% compared with $2.3 billion in the first six months of 2025. The decrease was primarily attributable to lower profitability, partially offset by a lower use of working capital compared to the first six months of 2025, including trade accounts receivable collections and timing of prepaid expenses and accounts payable.

Previous wording

Our current policy is to use our operating cash flow primarily to fund capital expenditures, merchant and settlement anticipation cash advances, share repurchases, acquisitions and to repay debt rather than to pay dividends. Our capital expenditures were approximately 9% and 7% of our total revenue for the first three months of 2026 and 2025, respectively.

Current wording

Our current policy is to use our operating cash flow primarily to fund capital expenditures, merchant and settlement anticipation cash advances, share repurchases, acquisitions and to repay debt rather than to pay dividends. Our capital expenditures were approximately 9% and 8% of our total revenue for the first six months of 2026 and 2025, respectively.

Previous wording

We repurchased 3.3 million shares of our common stock for $200 million and 9.7 million shares of our common stock for $2.2 billion during the first three 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 March 31, 2026, we had approximately 42.6 million shares remaining under our existing repurchase authorization. Shares repurchased are generally held for issuance in connection with our equity plans.

Current wording

We repurchased 1.7 million shares of our common stock for approximately $100 million and 12.2 million shares of our common stock for $2.2 billion during the second quarter of 2026 and 2025, respectively. We repurchased 5.0 million shares of our common stock for approximately $300 million and 21.9 million shares of our common stock for $4.4 billion during the first six 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 June 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.

Previous wording

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. Proceeds of $183 million received in the first quarter of 2026 were primarily used for general corporate purposes, including the repayment of debt. The remaining $18 million of proceeds are expected to be received in the second quarter of 2026.

Current wording

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 six months of 2026, were primarily used for general corporate purposes, including the repayment of debt.

Previous wording

At March 31, 2026, our debt consisted primarily of fixed-rate senior notes in the aggregate principal amount of $24.8 billion and $1.2 billion of outstanding borrowings under our commercial paper programs. 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 $775 million, 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.

Current wording

At June 30, 2026, our debt consisted primarily of fixed-rate senior notes in the aggregate principal amount of $24.5 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.

Previous wording

At March 31, 2026, the 3.200% senior notes due July 2026 and 5.150% senior notes due March 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 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.

Current wording

At June 30, 2026, the 3.200% senior notes due in July 2026, 5.150% senior notes due in March 2027, and 2.250% senior notes due in June 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.

Previous wording

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 $221 million at March 31, 2026. We are required to pay a facility fee based on the aggregate commitments in effect under the credit agreement from time to time.

Current wording

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. There were no outstanding borrowings under the revolving credit facility at June 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.

Previous wording

During the first three 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.

Current wording

During the first six 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.