Fiserv, Inc.

Welcome to the Fiserv first quarter 2026 earnings conference call. All participants will be in a listen-only mode until the question and answer session begins following the presentation. As a reminder, today's call is being recorded. At this time, I will turn the call over to Walter Pritchard, Senior Vice President and Head of Investor Relations at Fiserv.

Thank you, and good morning. With me on the call today are Mike Lyons, our Chief Executive Officer, and Paul Todd, our Chief Financial Officer. Our earnings release and supplemental materials for the quarter are available on the investor relations section of Fiserv.com. Please refer to these materials for an explanation of the non-GAAP financial measures discussed in this call, along with the reconciliation of those measures to the nearest applicable GAAP measures. Unless otherwise noted, performance references are year-over-year comparisons. Our remarks today will include forward-looking statements about, among other matters, expected operating and financial results and strategic initiatives. Forward-looking statements may differ materially from actual results and are subject to a number of risks and uncertainties. You should refer to our earnings release for a discussion of these risk factors. And now, we'll turn the call over to Mike.

Mike Pratt- Thank you, Walter, and good morning, everyone. As we began the year, we were firmly in execution mode and our first quarter results were in line with the expectations we shared with you in February. Our teams continued to be laser focused on executing against the 1-5 serve action plan. And while there's still significant work to do, we are taking the right actions with the right sense of urgency and feel really good about the progress to date. We are confident in our strategy And the unprecedented pace of change in banking and payments is creating an extraordinary opportunity for us, as our clients and prospects want a trusted partner to deliver sophisticated technology and value-added solutions. We are uniquely positioned to do exactly that. To drive these efforts, we continue to add outstanding talent across the organization, including new heads of operations for both merchant solutions and financial solutions, new chief revenue officers for Clover and Enterprise Merchant, and a new head of product for Financial Solutions. With respect to business performance, I'll start with Merchant Solutions, where we saw solid growth in Clover GPV, supported by good execution against our strategic initiatives and a stable macro. Clover VAS revenue represented 27% of Clover revenue in Q1, growing 18 percent from a year ago, driven by software and Clover Capital. We also saw steady growth in enterprise transactions. While anticipation lending volumes in Argentina remained strong, lower inflation and interest rates in Argentina were a revenue headwind to Merchant in Q1. I would note that this revenue softness was largely offset by lower interest expense below the line. Our preliminary April merchant volume growth, including clover GPV, remains solid around Q1 levels. Going forward in merchant, we're watching the impact of various environmental factors, including higher gas prices from the conflict in the Middle East, which, if sustained, can impact the mix of consumer spending. We saw some of this dynamic in the most recent Fiserv Small Business Index data. In Q1, we signed 27 new banks as merchant referral partners. We also announced our largest agent bank partnership in our history with Western Alliance Bank, which has more than $90 billion in assets and expands our reach with merchants across the Western U.S. We also hit important milestones in the quarter, going live with Commerce Hub omnichannel capability across a number of our largest petro customers. We also went live on Commerce Hub with built rewards in neighborhood hospitality and Via Americas in cross-border remittance. Our broadening global releases and customer go-lives are driving Commerce Hub transaction growth, which was up nearly 200 percent in Q1. Other key enterprise merchant wins in Q1 included a retail energy provider, Blue Shield of California, a leading tax compliance platform, and a large telecom provider who added on fraud capabilities. In financial solutions, we saw solid underlying business volume growth, particularly in Finzac and our payments businesses, excluding bill pay. New business sales showed continued momentum. We hit important product delivery milestones, and we saw an improvement in key client service metrics. While core bank account and revenue attrition remain above our long-term trend, we've seen early signs that our client service initiatives have been well received. We're also getting positive client feedback on our decision to continue supporting all of our cores, and we are signing and renewing customers across all cores. Also contributing to an enhanced client experience is the value we are delivering from our recent acquisitions of Stonecastle and Smith Consulting. where both our strategic and financial results are in line with our business cases. Key new business wins and financial solutions included Ocean First Bank, which is a $14.5 billion northeast regional bank that is growing rapidly through its announced acquisition of Flushing Bank. It extended its premier core and surrounds agreement with us, adding digital payments and committing to deploy core advance. Nicolet National Bank, a $16 billion Wisconsin-based bank, is adopting our premier core with its Midwest One acquisition. Truliant Federal Credit Union, a $5 billion-plus North Carolina-based institution, chose to move to our debit processing platform. We expanded our longstanding digital money movement relationship with PNC Bank to include cash flow central AP and AR services for their small businesses. And we had embedded finance wins with a large payroll provider and a large retailer to bring new capabilities to their payroll members and customers. In these wins, we will leverage new integrated capabilities across Fiserv, including Finzac for Ledger, Payfair for banking applications and program management, and Vision Next as a cardholder platform. Finzac was named Best SaaS for FinTech at the 2026 FinTech Awards, recognizing the combination of its market-leading innovation and scaled customer deployments. Finzac continued to grow strongly in Q1 with accounts and positions up over 70% as clients find value in its ability to provide financial infrastructure to enable any asset class in any domain at scale under a common platform and business model. So our execution is improving across both businesses, but as expected, that progress is not yet visible in our reported financial results as we are still lapping a higher mix of non-recurring revenue, feeling the lingering impacts from prior client service challenges, and absorbing the incremental expense from investments that will drive long-term client-focused growth. all necessary and important elements of our transition year in 2026. We look forward to the second half of the year and 2027 when we expect our operating performance will be more fully visible in our financial results. I'll now provide an update on our execution against the 1-5 serve action plan. Of course, we will cover all aspects of the plan in greater detail at the May 14th investor day. Under our client-first pillar, we continue to make target investments to raise the bar for client coverage, relationship management, service delivery, and product resilience. The number of client-facing personnel we have is up significantly, meeting a key demand from clients. And importantly, we are seeing better day-to-day execution. Our time to resolve client inquiries is down 27% year-on-year. While we still have significant work to do, high-impact client incidents are down nearly 60 percent year on year. And we launched important AI initiatives to enhance the performance of our primary client portal and call centers in financial solutions. Turning to Clover, our second pillar, we continue to make progress towards establishing it as the preeminent small business operating platform. We launched two new verticals in March with practice pay in the healthcare space and our professional services offering. We are seeing promising early results with annualized GPV per healthcare outlet running at double-digit levels above our existing Clover healthcare merchants and a 20% plus increase in new professional services outlets that attached our paid SAS offering in the month. Internationally, our momentum continued with Brazil clover outlets up over 30% sequentially, and we had another strong clover quarter in Canada where we remain on track to enable TD Merchant Solutions to provide clovers product offering, processing, and servicing to its clients in the second half of the year. After launching in Q4, we continued to expand our digital merchant activation capability and now have 22 of our top bank partners signed. We will also add this capability to our Clover.com online merchant referral partners. Through integration with Stonecastle, we remain on track to launch Clover Savings, our merchant cash management program, before the end of Q2. Through a number of important partnerships, we continue to build agentic capabilities for our Clover merchants, and we'll showcase some of these at Investor Day. And finally, we are excited to share that Clover is slated to support 30 World Cup games this summer in the U.S. and Mexico. Next, on the innovation front, we continue to hit critical milestones on key strategic products, including Experience Digital, Cashflow Central, Vision Next, Optus, and Commerce Hub, as I mentioned earlier. In our enterprise merchant business, we delivered a new developer portal supporting agentic commerce. Our teams have further ramped up their usage of AI tooling in the software development process with early results showing a significant reduction across key steps in new feature development and delivery time with mainframe modernization. And finally, we are on track to launch our previously announced stablecoin pilot this summer to facilitate interbank money movement. Fourth, we are in full swing with Project Elevate. With AI at the center of this program, we are very encouraged by the early results. The teams have identified hundreds of opportunities to drive revenue uplift, reduce expenses, increase simplicity, and improve productivity, and we're moving with urgency to operationalize them. Paul will outline our financial targets for Elevate at Investor Day. Beyond Elevate, we took several important actions in Q1 to drive efficiency, including closing two subscale offices, exiting underperforming merchant businesses in India, reducing management layers, and implementing more aggressive performance management. And just last week, we completed the migration of all customer activities from a significant data center as we continue our modernization activity. Last, but certainly not least on OneFiServe, is our commitment to highly disciplined capital allocation. We continue to sharpen our focus on the businesses and assets that best align to our go-forward strategy, including evaluating potential dispositions. I'll conclude by saying we look forward to seeing you at Investor Day where, among other topics, we will further highlight our strategic priorities, describe how our businesses are converging further to unlock more synergies, and share how we're using AI to transform systems of record into systems of collaboration, create new TAMs, and increase efficiency. Together, these actions will support the mid-single-digit adjusted revenue and double-digit EPS growth that we've discussed since last fall. This will position Fiserv to return to its roots and create significant shareholder value as a constant compounder. I want to thank our employees for their hard work and dedication, and our clients for their continued trust. With that, I'll turn it over to Paul to cover the details of Q1 and our guidance.