Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Total company adjusted revenue | $4.85 billion | 1% decrease |
| Adjusted earnings per share | $1.75 | Not stated |
| Free cash flow | $679 million | Not stated |
| Merchant Solutions adjusted operating income | $724 million | Not stated |
| Financial Solutions adjusted operating income | $887 million | Not stated |
Guidance and outlook
- We continue to expect adjusted revenue for the year of down 1.5% to down 0.5%.
- Our organic revenue guidance for the year is also unchanged at minus 1% to flat.
- We expect adjusted revenue for our Financial Solutions to decline in the low single digits due to the divestitures with organic revenue growth roughly consistent with the 2% we reported in Q3.
- In merchant, we expect adjusted and organic revenue growth in the 6% to 8% range.
- We continue to expect adjusted operating margin of approximately 31% to 31.5%, and adjusted EPS of between $7.20 and $7.40.
How management sounded
Positive (+6 on our -10 to +10 scale). Management expressed confidence in the revenue trajectory, raised efficiency savings targets, and announced the resumption of share buybacks. Management sounded more upbeat than on 8% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Banking attrition
Asked: Andrew Schmidt from KeyBanc asked about the 4 items discussed with clients and the timeline for improvement.
Answer: Takis Georgakopoulos noted that attrition is down 17% by revenue, and they expect banking to trend toward the 2% to 4% growth range in the back half of next year.
Project Elevate savings
Asked: Tien-Tsin Huang from JPMorgan asked about the logic behind the increased savings target and reinvestment.
Answer: Management explained the increase is due to rationalizing noncore assets and AI deployment, with more specific 2027 impact details coming in the fourth quarter.
Argentina headwind
Asked: Will Nance from Goldman Sachs asked about the visibility and range of outcomes for Argentina.
Answer: Paul Todd stated that this quarter likely represents the peak of the headwind and it will become an abating headwind moving forward.
Transformation spend
Asked: Harshita Rawat from Bernstein asked when transformation add-backs will moderate.
Answer: Paul Todd noted that transformation spend will continue into 2027, with Q4 spend roughly in line with Q3.
Agent OS
Asked: Vasu Govil from KBW asked if Agent OS is a retention tool or a revenue contributor.
Answer: Takis Georgakopoulos described it as both a standalone revenue product and an offensive growth initiative, with pricing based on value generated for clients.
What to watch before the next call
- The outcome of the portfolio review and potential divestitures of noncore businesses.
- The impact of the $1 billion Project Elevate savings on margins and the timeline for realization.
- The performance of Clover for Enterprise as it rolls out in 2027.
