Visa's quarterly revenue rises 13% to $12.1 billion as payments volume grows 9%

Visa reported on Oct 27 that net revenue rose 13% to $12.1 billion in its fiscal fourth quarter, the three months to Sept 30, as payments volume grew 9%. Adjusted earnings per share rose 17% to $3.48.

Visa guided to net revenue growth in the low double digits for fiscal 2027, after 15% in fiscal 2026. Its shares fell more than 1% in extended trading after the release, Reuters reported.

The quarter

Net income rose 18% to $6.0 billion, or $3.19 a share, from $5.1 billion, or $2.62 a share, a year earlier. The year-earlier quarter carried an $899 million litigation provision. The adjusted figure of $3.48 leaves out items such as litigation provisions and severance.

Analysts polled by Zacks had expected $3.43 a share on $12.08 billion of revenue, Stock Titan reported. Seeking Alpha reported that adjusted earnings per share beat the consensus by 4 cents and revenue met it.

• Payments volume grew 9% excluding currency swings, after 10% in the April–June quarter.
• Cross-border volume excluding transactions within Europe rose 14%.
• Processed transactions rose 10%.

Reuters reported that the FIFA World Cup, held June 11 to July 19, helped lift activity on Visa's network.

Revenue lines

Client incentives are payments Visa makes to banks and merchants to win and keep their business, and they are deducted from revenue. Operating expenses rose 7% to $4,877 million. The quarter included a $469 million litigation provision tied to the interchange multidistrict litigation.

The full year

Fiscal 2026 net revenue rose 15% to $45.9 billion, or 14% excluding currency swings. Net income was $23.5 billion, or $12.32 a share, and adjusted earnings per share rose 16% to $13.27.

Chief executive Ryan McInerney called it "a milestone year" and said revenue growth was "the strongest growth in over 15 years excluding the post-pandemic recovery and acquisitions".

Buybacks and dividend

Visa bought back about 11 million shares for $4.0 billion in the fiscal fourth quarter, at an average of $369.12 a share. It has $24.4 billion left under its buyback authorization.

The board raised the quarterly dividend 16% to $0.780 a share. Buybacks and dividends totalled $5.2 billion in the quarter and $25.6 billion for the year.

Fiscal 2027 outlook

Visa gives its outlook on an adjusted basis that excludes currency swings. Fiscal 2027 runs to Sept 30, 2027.

• Net revenue growth is guided to the low double digits for the full year and for the October–December quarter.
• Operating expense growth is guided to the low double digits for the full year and for the October–December quarter.
• Full-year growth in adjusted earnings per share is guided to the low double digits to low teens, Reuters and Seeking Alpha reported, after 16% in fiscal 2026.

What comes next

Mastercard, Visa's closest rival, reports third-quarter results on Oct 29. Zacks's consensus forecast for Mastercard is $5.14 a share on $9.63 billion of revenue.

Visa's raised dividend is payable on Dec 1 to shareholders of record on Nov 10.