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 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.

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 repurchase our common stock, including the expected amount, timing and funding of such repurchases; our ability to attract and retain key personnel; adverse impacts from currency exchange rates or currency controls; changes in corporate tax and interest rates; the possibility that we may be required to record non-cash goodwill impairment charges in future periods; 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 stateme…

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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 and six months ended June 30, 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 (loss) by comparing the results for the three and nine months ended September 30, 2026 to the comparable periods in 2025.

Previous 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.

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 the Financial Solutions (“Financial”) segment.

Previous wording

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

Current wording

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

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 and divestiture activity; expenses associated with our One Fiserv transformation initiative; postage reimbursements; and gains on early debt extinguishment associated with refinancing activities.

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 certain non-cash impairment charges; gains or losses on sales of businesses, certain assets or investments; costs associated with acquisition and disposition activity; expenses associated with our One Fiserv transformation initiative; and postage reimbursements.

Previous wording

We frequently review our businesses to ensure we have the necessary assets to execute our strategy. We expect to acquire businesses when we identify: a compelling strategic need, such as a product, service or technology that helps meet client demand; a way to achieve business scale that enables competition and operational efficiency; or similar considerations. We expect to divest businesses that are not in line with our market, product or financial strategies. The results of operations for the following acquired businesses are included in our consolidated results from the respective dates of acquisition.

Current wording

We frequently review our businesses to ensure we have the necessary assets to execute our strategy. We expect to acquire businesses when we identify: a compelling strategic need, such as a product, service or technology that helps meet client demand; a way to achieve business scale that enables competition and operational efficiency; or similar considerations. We expect to divest businesses that are not in line with our market, product, growth or margin profile, or financial strategies. The results of operations for the following acquired and divested businesses are included in our consolidated results from the respective dates of acquisition and through the respective dates of disposition.

Previous wording

On December 17, 2025, we acquired StoneCastle Cash Management, LLC, INDX Processing, LLC and StoneCastle Trust Co. (collectively, “StoneCastle”), a provider of deposit funding solutions. StoneCastle is included within the Financial segment and provides its network of depository institutions easy access to stable, cost efficient deposit funding. On October 1, 2025, we acquired a portion of The Toronto-Dominion Bank’s merchant processing business in Canada (“TD Merchant Canada”). This business is included within the Merchant segment and expands the footprint of our Clover® platform. In connection with this transaction, we signed a multi-year strategic managed services program agreement with The Toronto-Dominion Bank to utilize our technology, including Clover, within its Merchant Solutions business.

Current wording

On December 17, 2025, we acquired StoneCastle Cash Management, LLC, INDX Processing, LLC and StoneCastle Trust Co. (collectively, “StoneCastle”), a provider of deposit funding solutions. StoneCastle is included within the Financial segment and provides its network of depository institutions easy access to stable, cost efficient deposit funding. On October 1, 2025, we acquired a portion of The Toronto-Dominion Bank’s merchant processing business in Canada (“TD Merchant Canada”). This business is included within the Merchant segment and expands the footprint of our Clover® POS and business management platform. In connection with this transaction, we signed a multi-year strategic managed services program agreement with The Toronto-Dominion Bank to utilize our technology, including Clover, within its Merchant Solutions business.

Previous wording

On September 25, 2025, we acquired the Smith Consulting Group, LLC business (“SCG”), an operational consulting service utilized by community banks and credit unions across the U.S. SCG is included within the Financial segment and supports our ability to provide consultative engagement to enhance community banks’ and credit unions’ strategic investments. On September 4, 2025, we acquired CardFree Inc. (“CardFree”), an all-in-one platform delivering integrated order, payment and loyalty solutions for merchants. CardFree is included within the Merchant segment and further expands the capabilities of our Clover platform across the hospitality, restaurant and lodging industries.

Current wording

On September 25, 2025, we acquired the Smith Consulting Group, LLC business (“SCG”), an operational consulting service utilized by community banks and credit unions across the U.S. SCG is included within the Financial segment and supports our ability to provide consultative engagement to enhance community banks’ and credit unions’ strategic investments. On September 4, 2025, we acquired CardFree Inc. (“CardFree”), an all-in-one platform delivering integrated order, payment and loyalty solutions for merchants. CardFree is included within the Merchant segment and further expands the capabilities of our Clover POS and business management platform across the hospitality, restaurant and lodging industries.

Previous wording

We acquired these businesses for an aggregate purchase price, including deferred payments, of $857 million, net of $84 million of acquired cash and including earn-out provisions estimated at a fair value of $35 million.

Current wording

We acquired these businesses for aggregate consideration of $857 million, net of $84 million of acquired cash and including deferred payments and earn-out provisions with an estimated fair value of $35 million.

Previous 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.

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 throughout 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

Our unaudited consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America, which require management to make estimates, judgments and assumptions that affect the reported amount of assets, liabilities, revenue and expenses. In our Annual Report on Form 10-K for the year ended December 31, 2025, we identified our critical accounting policies and estimates. We continually evaluate the accounting policies and estimates that we use to prepare our consolidated financial statements, including for recently adopted accounting pronouncements, and base our estimates on historical experience and assumptions that we believe are reasonable in light of current circumstances. Actual amounts and results could differ materially from these estimates. For example, we estimate the fair values of identifiable assets acquired and liabilities assumed in connection with acquisitions of businesses and may record purchase accounting adjustments during the measurement period, which may be up to one year from the acquisition date. Additionally, we review the carrying value of goodwill for impairment by comparing the estimated fair values of our reporting units to their respective carrying values. Determining the fair value of a reporting unit involves judgment and the use of significant estimates and assumptions, which include assumptions regarding the revenue growth rates and operating margins used to calculate estimated future cash flows, risk-adjusted discount rates, and future economic and market conditions. There have been no material changes to our critical accounting policies and estimates from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.

Current wording

Our unaudited consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America, which require management to make estimates, judgments and assumptions that affect the reported amount of assets, liabilities, revenue and expenses. In our Annual Report on Form 10-K for the year ended December 31, 2025, we identified our critical accounting policies and estimates. We continually evaluate the accounting policies and estimates that we use to prepare our consolidated financial statements, including for recently adopted accounting pronouncements, and base our estimates on historical experience and assumptions that we believe are reasonable in light of current circumstances. Actual amounts and results could differ materially from these estimates. For example, we estimate the fair values of identifiable assets acquired and liabilities assumed in connection with acquisitions of businesses and may record purchase accounting adjustments during the measurement period, which may be up to one year from the acquisition date. Additionally, we review the carrying value of goodwill for impairment by comparing the estimated fair values of our reporting units to their respective carrying values. Determining the fair value of a reporting unit involves judgment and the use of significant estimates and assumptions, which include assumptions regarding the revenue growth rates and operating margins used to calculate estimated future cash flows, risk-adjusted discount rates, and future economic and market conditions. Except for the item discussed below, there have been no material changes to our critical accounting policies and estimates from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.

Previous 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.

Current wording

The following tables present certain amounts included in our consolidated statements of income (loss), 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, dispositions, certain non-cash impairment charges, expenses associated with our One Fiserv transformation initiative, net gains or losses on disposition of businesses and other assets, foreign currency fluctuations, and gains on early debt extinguishment associated with refinancing activities.

Previous wording

(1)Percentage of revenue is calculated as the relevant revenue, expense or income amount divided by total revenue, except for cost of processing and services and cost of product amounts, which are divided by the related component of revenue.

Current wording

(1)Percentage of revenue is calculated as the relevant revenue, expense or income (loss) amount divided by total revenue, except for cost of processing and services and cost of product amounts, which are divided by the related component of revenue.

Previous 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.

Current wording

Merchant segment in the third quarter and first nine months of 2026 was primarily due to a $56 million and $128 million decrease, respectively, in anticipation revenue in Argentina, attributed to lower inflation and interest rates. Revenue in our Merchant segment was also negatively impacted by lower data and analytics sales in both the third quarter and first nine months of 2026 and a decline in hardware revenue within Small Business in the first nine months of 2026. The overall decrease in revenue in our Merchant segment was partially offset by global volume growth, including from our Clover POS and business management platform.

Previous 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.

Current wording

Revenue in our Financial segment was flat in the third quarter of 2026 and decreased $314 million, or 4%, in the first nine months of 2026 compared to the prior year periods. Digital Payments contributed a 1% and 2% decline to Financial segment revenue in the third quarter and first nine months of 2026, respectively; Issuing contributed a 2% increase and a 1% decline in the third quarter and first nine months of 2026, respectively; and Banking contributed a 1% decline to Financial segment revenue in both the third quarter and first nine months of 2026. In the third quarter of 2026, revenue in our Financial segment was negatively impacted by lower data and analytics sales, offset by an increase in license revenue within Issuing compared to the prior year period. In the first nine months of 2026, revenue in our Financial segment was negatively impacted by lower data and analytics sales and license revenue compared to the prior year period, primarily within Digital Payments and Banking.

Previous 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.

Current wording

Revenue at Corporate and Other was flat in the third quarter of 2026 and increased $20 million, or 2%, in the first nine months of 2026 compared to the prior year periods, due to an increase in postage revenue.

Previous 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.

Current wording

Total expenses increased $6.86 billion in the third quarter of 2026 and $7.69 billion in the first nine months of 2026 compared to the prior year periods. Total expenses as a percentage of total revenue increased to 205.7% in the third quarter of 2026 and to 123.0% in the first nine months of 2026 compared to 72.7% and 71.5%, respectively, in the prior year periods. Total expenses as a percentage of total revenue were primarily impacted by a non-cash goodwill impairment charge of $6.45 billion recorded in the third quarter of 2026. Total expenses as a percentage of total revenue in the third quarter and first nine months of 2026 were also impacted by higher personnel costs, including professional fees, of approximately 670 basis points and 580 basis points, respectively, and costs associated with our strategic One Fiserv transformation program of approximately 280 basis points and 310 basis points, respectively, to support the client experience.

Previous 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.

Current wording

Cost of processing and services as a percentage of processing and services revenue increased to 40.8% in the third quarter of 2026 compared to 34.8% in the third quarter of 2025 and increased to 40.0% in the first nine months of 2026 compared to 34.0% in the first nine months of 2025. Cost of processing and services as a percentage of processing and services revenue in the third quarter and first nine months of 2026 was negatively impacted by higher personnel costs, including professional fees, of approximately 470 basis points and 360 basis points and costs associated with our strategic One Fiserv transformation program of approximately 170 basis points and 190 basis points, respectively.

Previous 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.

Current wording

Cost of product as a percentage of product revenue increased to 73.9% in the third quarter of 2026 compared to 68.6% in the third quarter of 2025 and increased to 71.8% in the first nine months of 2026 compared to 62.6% in the first nine months of 2025. Cost of product as a percentage of product revenue in the third quarter and first nine months of 2026 was negatively impacted by higher personnel costs, including professional fees, of approximately 240 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 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.

Current wording

Selling, general and administrative expenses as a percentage of total revenue increased to 36.6% in the third quarter of 2026 compared to 33.5% in the third quarter of 2025 and increased to 36.6% in the first nine months of 2026 compared to 32.4% in the first nine months of 2025. Selling, general and administrative expenses as a percentage of total revenue was negatively impacted in the third quarter and first nine months of 2026 by higher personnel costs of approximately 250 basis points and 230 basis points and costs associated with our strategic One Fiserv transformation program of approximately 130 basis points and 150 basis points, respectively. Selling, general and administrative expenses also included an impairment charge of $68 million associated with certain leased facilities in the third quarter and first nine months of 2026.

Previous 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.

Current wording

Total operating income (loss) decreased $6.93 billion in the third quarter of 2026 and $8.09 billion in the first nine months of 2026 compared to the prior year periods. Total operating margin decreased to (105.7)% and (23.0)% in the third quarter and first nine months of 2026 compared to 27.3% and 28.5%, respectively, in the prior year periods. Total operating income (loss) and total operating margin were primarily impacted by a non-cash goodwill impairment charge of $6.45 billion recorded in the third quarter of 2026. Total operating income (loss) and total operating margin in both the third quarter and first nine months of 2026 were also impacted by a decrease in high margin data and analytics sales and higher costs to support the client experience, including personnel costs and costs associated with our strategic One Fiserv transformation program. Total operating income (loss) and total operating margin in the first nine months of 2026 were also impacted by a decrease in high margin license revenue.

Previous 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.

Current wording

Operating income in our Merchant segment decreased $238 million, or 25%, in the third quarter of 2026 and $555 million, or 21%, in the first nine months of 2026 compared to the prior year periods. Operating margin decreased to 28.7% and 28.4% in the third quarter and first nine months of 2026 compared to 37.2% and 35.3%, 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 higher payments to distribution partners in both the third quarter and first nine months of 2026. Operating income in the Merchant segment benefited from a gain of $89 million in the third quarter and first nine months of 2025 related to the distribution of certain merchant contracts for the redemption of a minority partner’s membership interest.

Previous 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.

Current wording

Operating income in our Financial segment decreased $104 million, or 10%, in the third quarter of 2026 and $707 million, or 21%, in the first nine months of 2026 compared to the prior year periods. Operating margin decreased to 38.1% and 38.3% in the third quarter and first nine months of 2026 compared to 42.5% and 46.3%, respectively, in the prior year periods. The decrease in operating income and operating margin in our Financial segment in the third quarter and first nine months of 2026 was primarily due to a decrease in high margin data and analytics sales and higher personnel costs, including professional fees, as well as a decrease in high margin license revenue in the first nine months of 2026 compared to the prior year period.

Previous 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.

Current wording

The operating loss in Corporate and Other increased $6.59 billion in the third quarter of 2026 and $6.83 billion in the first nine months of 2026 compared to the prior year periods. The operating loss was primarily impacted by a non-cash goodwill impairment charge of $6.45 billion recorded in the third quarter of 2026. The operating loss in the third quarter and first nine months of 2026 was also negatively impacted by costs associated with our strategic One Fiserv transformation program of $158 million and $487 million, respectively, partially offset by an aggregate net gain of $100 million on disposition of businesses and other assets in the third quarter and first nine months of 2026.

Previous 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.

Current wording

Interest expense, net decreased $89 million, or 21%, in the third quarter of 2026 and $68 million, or 6%, in the first nine months of 2026 compared to the prior year periods due to 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 was also impacted by overall lower outstanding borrowings as we focused on managing our leverage ratio, including the purchase of a portion of our outstanding 5.150% senior notes due in March 2027 and 4.400% senior notes due in July 2049 through a cash tender offer and open market repurchases during the first nine months of 2026. These decreases were partially offset by our public offering and issuances of €1.0 billion, $2.0 billion and €2.175 billion of senior notes in June 2026, August 2025 and May 2025, respectively.

Previous wording

In June 2026, we purchased through a cash tender offer and open market repurchase a portion of our outstanding 5.150% senior notes due in March 2027 and 4.400% senior notes due in July 2049. Upon expiration of the cash tender offer, $1.3 billion aggregate principal amount of the senior notes was tendered and accepted for purchase for total consideration of $1.2 billion paid to holders. Additionally, $28 million aggregate principal amount of the senior notes due in July 2049 was retired through an open market repurchase for total consideration of $23 million paid to holders. This activity resulted in a pre-tax gain on early debt extinguishment of $154 million recorded in the second quarter of 2026.

Current wording

In June 2026, we purchased through a cash tender offer and open market repurchase a portion of our outstanding 5.150% senior notes due in March 2027 and 4.400% senior notes due in July 2049. Upon expiration of the cash tender offer, $1.3 billion of aggregate net book value of the senior notes was tendered and accepted for purchase for total consideration of $1.2 billion paid to holders. Additionally, during the first nine months of 2026, $175 million of aggregate net book value of the senior notes due in July 2049 was retired through open market repurchases for total consideration of $141 million paid to holders. This activity resulted in a pre-tax gain on early debt extinguishment of $183 million recorded in the first nine months of 2026.

Previous 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.

Current wording

Other expense, net decreased $46 million, or 92%, in the third quarter of 2026 and $101 million, or 94%, in the first nine 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 $14 million and $53 million for the three months ended September 30, 2026 and 2025, and $23 million and $117 million for the nine months ended September 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 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.

Current wording

The effective income tax rate for the nine months ended September 30, 2026 also 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.

Previous 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.

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 (loss). Income (loss) from investments in unconsolidated affiliates, including acquired intangible asset amortization from valuations in purchase accounting, was $0 million and $8 million in the third quarter of 2026 and 2025, and $15 million and $(16) million in the first nine months of 2026 and 2025, respectively. Income (loss) from investments in unconsolidated affiliates included a $7 million non-cash impairment charge in the third quarter and first nine months of 2026, and $13 million of non-cash impairment charges in the first nine months of 2025.

Previous 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.

Current wording

Net income attributable to noncontrolling interests relates to the minority partners’ share of the net income in our consolidated subsidiaries and was $2 million and $7 million in the third quarter of 2026 and 2025, and $7 million and $8 million in the first nine 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 $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.

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 $545 million, proceeds from the issuance of U.S. dollar and Euro commercial paper, and available capacity under our revolving credit facility of $4.3 billion (net of $240 million of outstanding revolver borrowings and $3.4 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 September 30, 2026.

Previous 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.

Current wording

Our operating cash flow was $3.1 billion in the first nine months of 2026, a decrease of 25% compared with $4.1 billion in the first nine months of 2025. The decrease was primarily attributable to lower profitability, along with higher use of working capital compared to the first nine months of 2025, including timing of accounts payable and income tax payments.

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 8% of our total revenue for the first six 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, acquisitions, debt repayment and share repurchases rather than to pay dividends. Our capital expenditures were approximately 9% and 8% of our total revenue for the first nine months of 2026 and 2025, respectively.

Previous 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.

Current wording

There were no repurchases of our common stock during the third quarter of 2026. We repurchased 7.2 million shares of our common stock for $1.0 billion during the third quarter of 2025. We repurchased 5.0 million shares of our common stock for $300 million and 29.1 million shares of our common stock for $5.4 billion during the first nine 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 September 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

We acquired StoneCastle, TD Merchant Canada, SCG, CardFree, Money Money, Pinch Payments, CCV, and Payfare in 2025 for an aggregate purchase price, including deferred payments, of $857 million, net of $84 million of acquired cash and including earn-out provisions estimated at a fair value of $35 million. We funded these acquisitions by utilizing a combination of available cash and commercial paper. The results of operations for these acquired businesses are included in our consolidated results from the respective dates of acquisition.

Current wording

We acquired StoneCastle, TD Merchant Canada, SCG, CardFree, Money Money, Pinch Payments, CCV, and Payfare in 2025 for aggregate consideration of $857 million, net of $84 million of acquired cash and including deferred payments and earn-out provisions with an estimated fair value of $35 million. We funded these acquisitions by utilizing a combination of available cash and commercial paper. The results of operations for these acquired businesses are included in our consolidated results from the respective dates of acquisition.

Previous wording

In May 2026, we entered into asset purchase and sale agreements with certain third parties providing for the monthly sale of certain future credit card receivables originated under our merchant cash advance programs. Aggregate proceeds from the sales of merchant cash advance receivables under these arrangements were $152 million during the six months ended June 30, 2026. The proceeds from these sales were primarily used to pay down indebtedness. Monthly sales of future credit card receivables under these agreements are expected to occur throughout the foreseeable future.

Current wording

In May 2026, we entered into asset purchase and sale agreements with certain third parties providing for the monthly sale of certain future credit card receivables originated under our merchant cash advance programs. Aggregate proceeds from the sales of merchant cash advance receivables under these arrangements were $141 million and $293 million during the three and nine months ended September 30, 2026, respectively. The proceeds from these sales were primarily used to pay down indebtedness. Monthly sales of future credit card receivables under these agreements are expected to occur throughout the foreseeable future.

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. The proceeds, which were received in the first six months of 2026, were primarily used for general corporate purposes, including the repayment of debt.

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

Previous wording

In June 2026, we completed the public offering and issuance of €1.0 billion of senior notes, comprised of €500 million aggregate principal amount of 3.750% senior notes due in October 2030 and €500 million aggregate principal amount of 4.250% senior notes due in June 2034. We used the net proceeds from this senior notes offering, together with proceeds from the sale of U.S. dollar commercial paper and cash from operations, to purchase through a cash tender offer and open market repurchase a portion of our outstanding 5.150% senior notes due in March 2027 (the “2027 notes”) and 4.400% senior notes due in July 2049 (the “2049 notes”). Upon expiration of the cash tender offer, $1.3 billion aggregate principal amount of the 2027 and 2049 notes was tendered and accepted for purchase for total consideration of $1.2 billion paid to holders. Additionally, $28 million aggregate principal amount of the 2049 notes was retired through an open market repurchase for total consideration of $23 million paid to holders. In July 2026, an additional $47 million aggregate principal amount of the 2049 notes was retired through an open market repurchase for total consideration of $38 million.

Current wording

In June 2026, we completed the public offering and issuance of €1.0 billion of senior notes, comprised of €500 million aggregate principal amount of 3.750% senior notes due in October 2030 and €500 million aggregate principal amount of 4.250% senior notes due in June 2034. We used the net proceeds from this senior notes offering, together with proceeds from the sale of U.S. dollar commercial paper and cash from operations, to purchase through a cash tender offer and open market repurchase a portion of our outstanding 5.150% senior notes due in March 2027 (the “2027 notes”) and 4.400% senior notes due in July 2049 (the “2049 notes”). Upon expiration of the cash tender offer, $1.3 billion of aggregate net book value of the 2027 and 2049 notes was tendered and accepted for purchase for total consideration of $1.2 billion paid to holders. Additionally, $28 million of aggregate net book value of the 2049 notes was retired through an open market repurchase for total consideration of $23 million paid to holders. During the third quarter of 2026, an additional $147 million of aggregate net book value of the 2049 notes was retired through open market repurchases for total consideration of $118 million paid to holders.

Previous 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.

Current wording

At September 30, 2026, our debt consisted primarily of fixed-rate senior notes in the aggregate principal amount of $22.4 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 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.

Current wording

At September 30, 2026, the 5.150% senior notes due in March 2027, 2.250% senior notes due in June 2027, and 1.125% senior notes due in July 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.