Visa Inc.
V · NYSE
Next quarter
Expected to report Jan 28, 2027 — estimated from last year’s reporting date.
Consensus is $3.63 EPS for Dec 2026 across 12 estimates, ranging $3.58 to $3.75.
V Sep 2026
- 1.46%
- -0.31%
- $3.43
- $3.48
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Highlights
- EPS beat: Q4 non-GAAP EPS was $3.48, up 17% year over year and 1.46% above the $3.43 consensus; management attributed the upside mainly to a lower-than-expected tax rate.
- Revenue growth: Net revenue rose 13% to $12.1 billion, in line with management’s expectations; it increased from $11.6 billion in Q3 and $10.7 billion a year earlier.
- Network volumes: Payments volume grew 9%, cross-border volume excluding intra-Europe rose 14%, and processed transactions increased 10% to 74.2 billion.
- Full-year record: FY2026 revenue reached $45.9 billion, up 15% nominally and 14% in constant dollars; non-GAAP EPS was $13.27, up 16%.
- Commercial and services growth: Full-year constant-dollar revenue growth was 19% for commercial and money movement solutions and 30% for value-added services; Q4 VAS revenue rose 31% in constant dollars to $4 billion.
- FY2027 outlook: Visa expects adjusted revenue growth in the low double digits and adjusted EPS growth from the low double digits to low teens; about 25% of payments volume is due for client renewal.
- Cash returned: Visa repurchased $4.0 billion of shares and paid $1.3 billion in dividends in Q4; the board raised the quarterly dividend 16% to $0.78 per share.
Analysis
Visa closed FY2026 with a strong quarter: net revenue increased 13% year over year to $12.1 billion, in line with management’s expectations, while non-GAAP EPS of $3.48 grew 17% and beat the $3.43 consensus by 1.46%. GAAP net income was $6.0 billion, up 18%, and GAAP EPS was $3.19, up 22%. Revenue rose from $11.6 billion in Q3; operating income increased to $7.3 billion from $6.9 billion, and net income to $6.0 billion from $5.6 billion. Compared with Q4 FY2025, revenue was $10.7 billion and net income $5.1 billion. EPS outperformance chiefly reflected an 18.4% adjusted tax rate, below expectations.
The print was defined by resilient network activity, strong services growth and a measured FY2027 outlook. Payments volume grew 9%, cross-border volume excluding intra-Europe accelerated to 14%, and transactions rose 10%. Full-year revenue reached a record $45.9 billion, while commercial and money movement solutions and value-added services grew 19% and 30%, respectively, in constant dollars. Looking ahead, Visa expects low-double-digit adjusted revenue growth, with Q2 the low point, and adjusted EPS growth from the low double digits to low teens. Management cited renewals covering about 25% of payments volume, higher incentives, and continued investment as important factors in that outlook.
Quarterly performance
Q4 net revenue of $12.1 billion grew 13% in both nominal and constant-dollar terms. Operating income was $7.3 billion, up from $6.9 billion in Q3 and $6.1 billion a year ago; net income of $6.0 billion compared with $5.6 billion and $5.1 billion, respectively. Non-GAAP EPS of $3.48 rose 17% year over year and exceeded the $3.43 consensus. Management said the EPS upside was primarily due to a lower-than-expected tax rate. GAAP EPS was $3.19, including special items, notably a $469 million litigation provision and a $282 million Visa Foundation donation.
Network activity
- Payments: Constant-dollar payments volume grew 9% in Q4, while U.S. payments volume rose 10%; U.S. credit grew 11% and debit 9%.
- Cross-border: Volume excluding intra-Europe increased 14%, more than 2 points faster than Q3, with travel growth accelerating to 13% and cross-border e-commerce up 17%. Management cited stronger CEMEA travel and continued U.S. inbound demand, including FIFA-related activity.
- Processing: Visa processed 74.2 billion transactions, up 10% year over year. For the full year, transactions totaled 281.3 billion, up 9%.
Revenue mix and services
- Revenue categories: Service revenue grew 14% to $5.3 billion, data processing revenue rose 16% to $6.2 billion, international transaction revenue increased 8% to $4.1 billion, and other revenue climbed 40% to $1.6 billion.
- Client incentives: Incentives increased 21% to $5.1 billion, a step-up from Q3, primarily reflecting deals signed in Q3 and early Q4.
- Growth businesses: Q4 value-added services revenue grew 31% in constant dollars to $4 billion, supported by underlying activity, pricing and the Prisma acquisition. For FY2026, VAS revenue grew 30% and commercial and money movement solutions revenue grew 19% in constant dollars.
- Costs: Adjusted operating expenses increased 12%, principally from marketing and personnel costs. The GAAP increase was 7% to $4.9 billion, with lower litigation provisions than a year earlier partly offsetting higher underlying spending.
FY2027 outlook
Visa expects adjusted net revenue growth in the low double digits for FY2027, with Q2 the growth low point as the company laps a strong prior-year quarter. The outlook assumes generally stable consumer spending and key business drivers, while management flagged near-term uncertainty around CEMEA cross-border travel. Pricing is expected to contribute similarly to FY2026, but to be more weighted to the second half. Around 25% of payments volume is expected to come up for renewal, versus about 20% in FY2026, driving a higher incentive growth rate. Adjusted operating expense growth is expected in the low double digits, modestly below revenue growth; adjusted EPS growth is forecast from the low double digits to low teens. For Q1, the company expects low-double-digit revenue growth and EPS growth at the low end of the mid-teens.
Digital payments initiatives
Management emphasized expansion in value-added services, stablecoin infrastructure and agentic commerce as longer-term growth avenues. FY2026 VAS revenue reached $14 billion, up 30% in constant dollars; Visa expects low- to mid-20s VAS growth in FY2027. Stablecoin settlement run-rate volume exceeded $25 billion annualized, up 10 times year over year, and Visa now supports 10 blockchains. Visa Direct stablecoin prefunding and cross-border money movement moved from pilot to commercial production. Agentic commerce remains very early and, according to the CEO, is still small relative to Visa’s overall business; the company reported nearly 50 AI partners live and in production.
Capital returns
- Share repurchases: Visa bought back about 11 million shares for $4.0 billion in Q4. FY2026 repurchases totaled $20.5 billion, with $24.4 billion remaining in authorized funds at September 30.
- Dividends: Q4 dividends were $1.3 billion. The board increased the quarterly dividend 16% to $0.78 per share, payable December 1, 2026.
- Litigation escrow: Visa deposited $405 million into its litigation escrow account; the company said the deposit had the same EPS effect as a share repurchase.
