Visa (V.US) Q4 revenue increased by 13% year-on-year to $12.1 billion, cross-border payment transaction volume grew by 14%

According to Investing.com, Visa (V.US) released its financial report for the fourth quarter and the full year of fiscal 2026 on Tuesday. The data shows that the company's net revenue for the fourth quarter reached $12.139 billion, up 13% year-over-year; GAAP net profit was $6.002 billion, an 18% increase year-over-year; and diluted earnings per share were $3.19, up 22% year-over-year. Non-GAAP adjusted net profit was $6.552 billion, an increase of 13% year-over-year, and adjusted earnings per share were $3.48, up 17% year-over-year.

In terms of profitability, Visa's operating profit for the fourth quarter reached $7.262 billion, up about 18% year-over-year; the operating margin was approximately 59.8%, higher than 57.3% for the same period last year. GAAP operating expenses for the quarter were $4.877 billion, a year-over-year increase of 7%, mainly driven by higher general and administrative expenses. Non-GAAP adjusted operating expenses increased 12% year-over-year, mainly reflecting higher marketing and personnel expenses.

Visa stated that fourth-quarter revenue growth was mainly driven by continued increases in payment volume, cross-border payment volume, and processed transaction count. Specifically, Visa's payment volume in the fourth quarter grew 9% year-over-year on a constant-currency basis; cross-border payment volume, excluding intra-Europe transactions, increased 14% year-over-year, and overall cross-border payment volume also grew 14%. The number of transactions processed during the quarter reached 74.2 billion, a 10% year-over-year increase.

By business segment, Visa's service revenue for the fourth quarter was $5.255 billion, a 14% year-over-year increase; data processing revenue was $6.245 billion, up 16% year-over-year; international transaction revenue was $4.115 billion, an 8% increase; and other revenue was $1.647 billion, up 40%. Meanwhile, client incentive expenses rose 21% year-over-year to $5.123 billion.

It is noteworthy that Visa recognized approximately $469 million in litigation provisions related to interchange fees on bank cards in the fourth quarter and donated investment assets worth $282 million to the Visa Foundation. These items had some impact on the quarter's GAAP profit.

From a full-year perspective, Visa achieved net revenue of $45.903 billion in fiscal 2026, up 15% year-over-year, and a 14% increase on a constant-currency basis, marking an all-time high. Annual GAAP net profit was $23.504 billion, a 17% increase; diluted earnings per share were $12.32, up 21% year-over-year. Non-GAAP adjusted net profit was $25.314 billion, up 12% year-over-year, and adjusted earnings per share were $13.27, an increase of 16% year-over-year.

Regarding business metrics, Visa's annual payment volume grew 9% on a constant-currency basis; cross-border payment volume, excluding intra-Europe transactions, increased 12%; and overall cross-border payment volume grew 13%. The total number of processed transactions for the year reached 281.3 billion, a 9% year-over-year increase.

Visa CEO Ryan McInerney stated that fiscal year 2026 was a milestone year for the company. Annual revenue reached a record high of about $46 billion, a 15% increase year-over-year. Excluding the effects of post-pandemic recovery and acquisitions, this marks Visa's strongest annual revenue growth in more than fifteen years.

In terms of shareholder returns, Visa returned $5.2 billion to shareholders through share repurchases and dividends in the fourth quarter, with a cumulative total of $25.6 billion for the year. This includes $4 billion spent in the fourth quarter to repurchase about 11 million shares of Class A common stock, bringing total share repurchases for the year to $20.5 billion. As of the end of September, Visa's remaining share repurchase authorization stood at $24.4 billion.

In addition, the Visa Board of Directors announced a 16% increase in the quarterly cash dividend to $0.78 per share, with the new dividend payable on December 1 to shareholders of record as of November 10.

In terms of mergers and acquisitions, Visa previously announced the acquisition of fraud risk intelligence company BioCatch for $2.4 billion in cash. The transaction is expected to close before the end of the second quarter of fiscal 2027, subject to customary closing conditions, including regulatory approvals.

As of September 30, 2026, Visa held approximately $14.2 billion in cash, cash equivalents, and investment securities.

Looking ahead, McInerney stated that as technology continues to change the way commerce is conducted, Visa will continue to leverage its global payment network, technology, and product strengths to seize new opportunities in the payments industry, with trust viewed as a key factor driving the company's growth for 2027 and beyond.