Payment service provider Fiserv has released financial results for the second quarter of 2024, highlighting significant earnings growth. The firm’s revenue increased by 7% to $5.11 billion compared to the same period last year.

Merchant Solutions

This growth was primarily boosted by a 9% rise 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% year-over-year increase.

Earnings per share (EPS) surged by 39% to $1.53 in Q2 and $2.76 for the first six months of 2024. The company also posted an operating margin of 28.0% for the quarter, up from 23.8% in the previous year, showcasing operational efficiency and profitability.

Organic revenue grew by 18% in Q2 2024, with the Merchant Solutions segment leading the charge at a 28% gain. The Financial Solutions segment also performed well, posting an 8% increase. For the first half of the year, organic revenue experienced a 19% rise, boosted by a 32% growth in the Merchant Solutions segment.

Adjusted EPS reflected this positive trend, increasing by 18% to $2.13 in Q2 and to $4 for the first six months of 2024. The adjusted operating margin also improved, climbing to 38.4% in the second quarter, a 160 basis point increase from the previous year.

Operational Excellence and Cash Flow

Net cash provided by operating activities increased by 8% to $2.17 billion in the first six months of 2024. Free cash flow was nearly flat 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 Q2 and 20.2 million shares for $3.0 billion in the first half of the year, reflecting confidence in its financial stability and future growth.

Following the strong performance in the first half of the year, Fiserv has raised its adjusted EPS outlook for 2024 to a range of $8.65 to $8.8, representing a 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 enhance operational performance. The new segments, Merchant Solutions, and Financial Solutions aim to serve its financial institution clients through an integrated portfolio of products and solutions.