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📊 𝐑𝐞𝐬𝐮𝐥𝐭𝐬
• Adj. EPS: $1.75 (Est. $1.71) ✅, -14% YoY.
• GAAP Revenue: $5.20B (Est. $4.84B) ✅, -1% YoY.
• Adjusted Revenue: $4.85B, -1% YoY.
• GAAP EPS: -$11.17 (vs. +$1.46 YoY).
• Organic Revenue Growth: Flat YoY.
• Adjusted Operating Margin: 31.2%, -580 bps YoY.
• GAAP Operating Margin: -105.7%.
• 9M Free Cash Flow: $2.04B (vs. $2.88B YoY).
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🎯 𝐆𝐮𝐢𝐝𝐚𝐧𝐜𝐞
• FY2026 Adj. EPS: $7.20–$7.40, midpoint $7.30 (Est. $7.24) ✅, reaffirmed.
• FY2026 Organic Revenue Growth: -1% to 0%, unchanged.
• Project Elevate Savings Target: $1.0B, doubled from $500M.
• Q4 Share Repurchases: ~$500M planned.
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📌 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬
• Q3 adjusted EPS beat consensus by ~2.3%, while reported revenue exceeded estimates by ~7.4%.
• Recorded a $6.45B non-cash goodwill impairment, driving a GAAP loss of $11.17 per share.
• Merchant Solutions organic revenue declined 2%, while Financial Solutions returned to 2% organic growth.
• Adjusted operating margin contracted 580 bps to 31.2%, reflecting continued profitability pressure.
• Project Elevate projected savings doubled to $1B following a portfolio and efficiency review.
• Banking net attrition improved by more than 25% YTD, with major client wins beginning to ramp.
• Completed the sale of its student loan servicing business and established the MoneyPass Group joint venture.
• 9M operating cash flow declined to $3.09B from $4.12B YoY.
• Plans to resume share repurchases in Q4 with $500M under its existing authorization.
• Management expects revenue growth to accelerate in Q4 while maintaining full-year guidance.
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💬 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐂𝐨𝐦𝐦𝐞𝐧𝐭𝐚𝐫𝐲
“Our second-half initiatives are on track to support the revenue acceleration we expect in the fourth quarter, and we are reaffirming our full-year guidance.”
