Goldman Sachs reviews fintech earnings and investor debates

Goldman Sachs examined second quarter 2026 earnings from companies in the fintech sector. The median stock rose 13% year-to-date, with moderate revenue and earnings per share growth. Earnings estimates were raised slightly for most companies. Chime, Remitly, Par Technology, and Riskified received the biggest positive revisions, while Western Union, Fiserv, and Shift4 Payments saw the largest declines.

Investor reactions to earnings were less extreme than in recent quarters. Goldman Sachs noted that investors are looking for companies with stronger revenue growth as consumer spending slows.

Block Inc drew attention after reporting earnings, with a post-earnings sell-off attributed to high expectations and crowded positioning. Investors noted lower-than-expected operating expense savings from headcount cuts and debate over the pace of deceleration in Cash App lending revenue.

In merchant processing, sentiment improved for Global Payments and Shift4 Payments, both trading at what Goldman Sachs sees as undervalued multiples. Global Payments had an EV/EBITDA of 9.4x, while Shift4 was at 11.8x for 2027 estimates. Fiserv remained a target for negative sentiment, with questions about its merchant story and Clover's growth prospects amid distribution and competition challenges.

Card networks were a focus, with many investors expecting Visa to see peak performance in Q2 2026 due to pricing, global events, and strong U.S. spending. Visa secured a major portfolio win from Mastercard, taking over Natwest's credit business. However, concerns remain about Mastercard's 2027 revenue outlook, including the end of Capital One's revenue guarantees, continued migration of Capital One credit accounts, and losses in cross-border and Natwest portfolios.