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Visa (V.US) Q3 Earnings Beat Expectations, Slightly Raises Full-Year Revenue Guidance, Takes $563 Million Charge Due to Layoffs

Visa (V.US) Q3 Earnings Beat Expectations, Slightly Raises Full-Year Revenue Guidance, Takes $563 Million Charge Due to Layoffs

智通财经智通财经2026/07/29 09:06
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By:智通财经

Visa's financial report for the third quarter of fiscal year 2026 shows that revenue increased by 14% year-on-year to $11.633 billion, surpassing analysts' average expectations; adjusted earnings per share were $3.32, higher than the average analyst expectation of $3.23.

According to Odaily Finance APP, Visa (V.US), the world’s largest payment network company, announced its financial results for the third quarter of fiscal year 2026, with revenue up 14% year-on-year to $11.633 billion, surpassing analysts’ average expectations. Adjusted net profit reached $6.296 billion, an 8% increase from the previous year; adjusted earnings per share were $3.32, higher than the average analyst estimate of $3.23.

Consumer spending on the Visa network rose 10% year-on-year, cross-border transaction volume grew by 13%, and the number of processed transactions increased by 10%. As a major sponsor of the FIFA World Cup, the event also helped boost Visa's performance in the third quarter. Visa CFO Chris Su stated in a conference call with analysts that in some World Cup host cities, so-called “physical card transaction” volume increased by as much as 20% on match days.

CEO Ryan McInerney said: “Visa delivered strong results in the third quarter, with net revenue growing 14% year-on-year, GAAP earnings per share up 10%, and non-GAAP earnings per share rising 11%. Consumer and business spending remain robust, and our strategies continue to drive strong performance in consumer payments, commercial and money movement solutions, and value-added services. As a leading hyperscale enterprise in global payments, we are designing, building, and delivering products at a faster pace, enabling Visa, our clients and the ecosystem to seize future opportunities and drive growth.”

Looking ahead, Visa slightly raised its outlook for full-year revenue growth, now expecting net revenue growth to be “at the low end of the low single-digit to low double-digit range,” compared to the previous forecast of “low double-digit to low single-digit range.” The company now expects earnings per share growth to be “at the low end of the mid-single-digit to mid-double-digit range.”

It is worth noting that just a few hours before the third-quarter report was released, Visa announced in an internal memo to employees that around 2,600 positions—about 7% of its global workforce—would be cut, mainly involving technology and product teams. Visa said the company would recognize a $563 million charge related to the layoff plan. One person familiar with the decision said this move is part of Visa’s efforts to improve operating efficiency, aiming to help the company focus more on its greatest growth opportunities, including consumer payments, commercial payments and money movement solutions, as well as value-added services.

McInerney noted in the memo: “To seize future opportunities and keep Visa ahead in this transformation, we must continue to evolve the ways we work. Artificial Intelligence (AI) is also accelerating this change and reshaping how Visa works internally.”

According to sources, while AI is being employed to reduce repetitive work and speed up product development, it is not the only reason for this round of layoffs. Visa plans to reallocate resources from the reduction to areas such as consumer payments, commercial and money movement solutions, and value-added services, which include stablecoins, cross-border payments, and B2B business.

McInerney summarized in the memo: “The choices we’ve made over the past few years are propelling us into a new era for the business, with company operations demonstrating strong growth momentum. This is reflected in our consistently robust financial results, customer satisfaction, employee engagement, and breakthrough innovation in both the speed of product development and delivery.”

In addition, McInerney said during the analyst conference call that Visa’s previously larger product development teams of 10 or more are being restructured into smaller and more agile teams of 2 to 4 members each.

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