Visa Q4 profit rises 17% on cross-border volume growth

Visa Inc. (V) said on Oct. 27 that its fiscal fourth-quarter 2026 net revenue rose 13% from a year earlier to $12.14 billion, while non-GAAP earnings per share rose 17% to $3.48. The earnings per share figure was in line with the $3.50 consensus estimate compiled by Finnhub, and revenue came in below the $12.33 billion estimate.

Shares fell 1.9% in after-hours trading as of 5:12 p.m. ET, from a regular-session close of $401.83.

Visa operates a payments network connecting consumers, sellers, financial institutions and government entities across more than 200 countries and territories. The results cover the fiscal fourth quarter and full year ended Sept. 30, 2026, according to the company's 8-K.

Here's how the company did:

• Net revenue: $12.14 billion vs. $10.72 billion a year earlier, below the $12.33 billion consensus estimate compiled by Finnhub
• Non-GAAP earnings per share: $3.48 vs. $2.98 a year earlier, in line with the $3.50 consensus estimate compiled by Finnhub
• GAAP earnings per share: $3.19 vs. $2.62 a year earlier
• Non-GAAP net income: $6.6 billion, up 13% from a year earlier

For the full year, net revenue was $45.9 billion, up 15%, and non-GAAP earnings per share were $13.27, up 16%. GAAP net income was $23.5 billion, or $12.32 per share, up 17% from a year earlier.

CEO Ryan McInerney said, "Visa delivered a milestone year."

He added, "As we look to 2027 and beyond, trust is the next growth vector for Visa."

Volume and revenue drivers

Payments volume rose 9% in constant dollars in the quarter, and cross-border volume excluding intra-Europe rose 14%. Processed transactions rose 10%, to 74.2 billion.

Service revenue was $5.3 billion, up 14%. Data processing revenue rose 16% to $6.2 billion, and international transaction revenue grew 8% to $4.1 billion. Client incentives were $5.1 billion, up 21%.

Revenue has risen in each of the last three quarters, from $10.72 billion in the fourth quarter of fiscal 2025 to $11.63 billion in the third quarter of fiscal 2026, according to its SEC filings.

Costs and charges

GAAP operating expenses were $4.9 billion, up 7%. Excluding special items, non-GAAP operating expenses rose 12%, driven by marketing and personnel expenses.

The quarter included special items of $469 million for a litigation provision tied to the interchange multidistrict litigation case, and $282 million related to the donation of investments to the Visa Foundation. It also included $37 million of deferred tax expense from a change in U.S. taxation of certain foreign earnings.

For the full year, the company recorded $563 million in severance costs.

Capital returns and acquisition

The board raised the quarterly cash dividend 16% to 78 cents per share of class A common stock, payable Dec. 1 to holders of record as of Nov. 10.

Visa repurchased about 11 million class A shares in the quarter at an average cost of $369.12, for $4.0 billion. It had $24.4 billion of remaining authorized funds for repurchases as of Sept. 30.

On Aug. 3, Visa said it signed a definitive agreement to acquire BioCatch for $2.4 billion in cash. The company said the deal is expected to close by the end of its fiscal second quarter of 2027, subject to regulatory approvals.

On Sept. 18, Visa deposited $405 million into its U.S. litigation escrow account. Cash, cash equivalents and investment securities were $14.2 billion at Sept. 30.

The release does not include new financial guidance for fiscal 2027.