Fintech
Fiserv Reports Solid Q2 Results, Profits Jump 39%
Payment services provider Fiserv has released its financial results for the second quarter of 2024, highlighting significant earnings growth. The company’s revenue increased 7% to $5.11 billion compared to the same period last year.
This growth was primarily driven by a 9% increase in the Merchant Solutions segment and a 6% increase in the Financial Solutions segment. For the first half of 2024, GAAP revenue reached $9.99 billion, reflecting a 7% increase year over year.
Earnings per share (EPS) increased 39% to $1.53 in the second quarter and $2.76 in the first six months of 2024. The company also reported an operating margin of 28.0% for the quarter, up from 23.8% a year earlier, demonstrating operational efficiency and profitability.
Organic revenue grew 18% in Q2 2024, with Merchant Solutions leading the charge with 28% growth. Financial Solutions also performed well, growing 8%. For the first half of the year, organic revenue increased 19%, supported by 32% growth in Merchant Solutions.
Adjusted EPS reflected this positive trend, increasing 18% to $2.13 in Q2 and to $4 for the first six months of 2024. Adjusted operating margin also improved, rising to 38.4% in the second quarter, a 160 basis point increase over the prior year.
Operational Excellence and Cash Flow
Net cash provided by operating activities increased 8% to $2.17 billion in the first six months of 2024. Free cash flow was virtually unchanged at $1.48 billion compared to $1.47 billion in the prior-year period. Fiserv also repurchased 10 million shares of common stock for $1.5 billion in the second quarter and 20.2 million shares for $3.0 billion in the first half of the year, demonstrating confidence in its financial stability and future growth.
Following solid performance in the first half of the year, Fiserv increased its 2024 adjusted EPS forecast to a range of $8.65-8.8, representing growth of 15% to 17%. The company continues to expect organic revenue growth of 15% to 17% for the full year.
In the first quarter of 2024, Fiserv realigned its reportable segments to improve operating performance. The new segments, Merchant Solutions and Financial Solutions, aim to serve its financial institution customers through an integrated portfolio of products and solutions.
Payment services provider Fiserv has released its financial results for the second quarter of 2024, highlighting significant earnings growth. The company’s revenue increased 7% to $5.11 billion compared to the same period last year.
This growth was primarily driven by a 9% increase in the Merchant Solutions segment and a 6% increase in the Financial Solutions segment. For the first half of 2024, GAAP revenue reached $9.99 billion, reflecting a 7% increase year over year.
Earnings per share (EPS) increased 39% to $1.53 in the second quarter and $2.76 in the first six months of 2024. The company also reported an operating margin of 28.0% for the quarter, up from 23.8% a year earlier, demonstrating operational efficiency and profitability.
Organic revenue grew 18% in Q2 2024, with Merchant Solutions leading the charge with 28% growth. Financial Solutions also performed well, growing 8%. For the first half of the year, organic revenue increased 19%, supported by 32% growth in Merchant Solutions.
Adjusted EPS reflected this positive trend, increasing 18% to $2.13 in Q2 and to $4 for the first six months of 2024. Adjusted operating margin also improved, rising to 38.4% in the second quarter, a 160 basis point increase over the prior year.
Operational Excellence and Cash Flow
Net cash provided by operating activities increased 8% to $2.17 billion in the first six months of 2024. Free cash flow was virtually unchanged at $1.48 billion compared to $1.47 billion in the prior-year period. Fiserv also repurchased 10 million shares of common stock for $1.5 billion in the second quarter and 20.2 million shares for $3.0 billion in the first half of the year, demonstrating confidence in its financial stability and future growth.
Following solid performance in the first half of the year, Fiserv increased its 2024 adjusted EPS forecast to a range of $8.65-8.8, representing growth of 15% to 17%. The company continues to expect organic revenue growth of 15% to 17% for the full year.
In the first quarter of 2024, Fiserv realigned its reportable segments to improve operating performance. The new segments, Merchant Solutions and Financial Solutions, aim to serve its financial institution customers through an integrated portfolio of products and solutions.