Goldman Sachs reviews fintech earnings and investor debates

Investing.com -- Goldman Sachs released a review of second quarter 2026 earnings across its fintech coverage, noting that the median stock gained 13% quarter-to-date with modest gains maintained since earnings reports.

Revenue and earnings per share estimates were revised higher by low single digits across the coverage. Chime (NYSE: CHYM), Remitly (NASDAQ: RELY), Par Technology (NYSE: PAR), and Riskified (NYSE: RSKD) saw the most substantial upward revisions. Western Union (NYSE: WU), Fiserv (NYSE: FISV), and Shift4 Payments (NYSE: FOUR) received the largest negative revisions.

Goldman Sachs said day-of-earnings stock reactions were less extreme than in prior quarters, with some positioning-driven exceptions. The firm said investors are seeking to identify which companies could maintain stronger revenue growth as consumer spending slows.

Block Inc (NYSE: XYZ) drew investor attention following its earnings report. Goldman Sachs attributed the post-earnings selloff to high expectations and crowded positioning. The firm said investors noted lower-than-expected operating expense savings from headcount reductions and debate around the pace of deceleration in Cash App lending revenue.

Among merchant processors, sentiment improved for Global Payments (NYSE: GPN) and Shift4 Payments, as both companies indicated potential product cycles could improve organic growth. Both trade at what Goldman Sachs views as inexpensive multiples, with Global Payments at 9.4 times enterprise value to unlevered free cash flow and Shift4 at 11.8 times on 2027 estimates.

Sentiment on Fiserv remained negative, with investors questioning the merchant story and Clover's ability to maintain growth amid distribution channel disruption and competition.

For card networks, Goldman Sachs said many investors expected the second quarter of 2026 to be "peak Visa" due to pricing, global sporting events, and strong U.S. spending. Visa (NYSE: V) announced a major portfolio win from Mastercard (NYSE: MA), securing the Natwest Credit portfolio. This followed Natwest's move of its debit portfolio to Mastercard over the past two years.

Goldman Sachs said concerns remain around Mastercard's 2027 revenue, including the end of Capital One contract revenue minimums, continued Capital One credit migrations, and portfolio losses in cross-border business and now Natwest.

Chime's second quarter results addressed concerns from investors who held negative sentiment entering the quarter. The company showed faster revenue benefits from its Chime Prime membership tier and outperformed on spend volume. Goldman Sachs said commentary on Instant Loans and Chime Enterprise implied upside risk to 2027 estimates.

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