Visa (V) Q1 2026 Financial Results Summary

2026-01-30 · Stocks · QuoteReporter

Visa (V) Q1 2026 Financial Results Summary

Visa (NYSE: V) released its fiscal first quarter 2026 financial results on January 29, 2026. The results reflect strong performance across multiple key metrics driven by consumer spending and seasonal trends.

Financial Highlights

Net Revenue:
$10.9 billion, up 15% compared to Q1 2025.
On a constant-dollar basis, revenue increased 13%.
GAAP Net Income:
Totaled $5.9 billion, representing a 14% increase year-over-year (YoY).
GAAP Earnings Per Share (EPS) was $3.03, reflecting a 17% year-over-year increase.
Non-GAAP Metrics:
Non-GAAP Net Income stood at $6.1 billion, increasing 12% YoY.
Non-GAAP Earnings Per Share was $3.17, up 15% compared to the previous year.
Payments Volume:
Increased by 8% YoY.
Cross-Border Volume:
Excluding intra-Europe transactions, it rose by 11%.
Total cross-border volume increased by 12% over the year.
Processed Transactions:
Experienced a 9% increase YoY, totaling 69.4 billion transactions.

Revenue Breakdown

Service Revenue:
Increased 13% YoY to $4.76 billion.
Data Processing Revenue:
Grew by 17%, amounting to $5.54 billion.
International Transaction Revenue:
Rose 6% to $3.65 billion.
Other Revenue:
Totaled $1.2 billion, increasing substantially by 33% YoY.

Expense and Tax Information

Operating Expenses:
Totaled $4.16 billion, reflecting a 27% increase from the previous year, primarily due to a litigation provision increase.
Non-Operating Expense:
Recorded at $11 million.
Effective Income Tax Rate:
GAAP effective tax rate was 13.0%, a 4 percentage points decrease compared to Q1 2025.
The Non-GAAP effective tax rate was 18.4%, up by 1 percentage point year-over-year.

Shareholder Returns

Share Repurchases:
Approximately 11 million shares of class A common stock were repurchased at an average price of $342.13 per share, for a total of $3.8 billion.
Dividends:
A quarterly cash dividend of $0.670 per share was declared on January 27, 2026, payable on March 2, 2026, to all holders of record as of February 10, 2026.

Balance Sheet

Cash, cash equivalents, and investment securities were reported at $16.9 billion as of December 31, 2025.
Total assets amounted to $96.8 billion, while total liabilities were $58 billion, resulting in total equity of $38.8 billion.

Notable Items

Visa’s litigation developments included an amendment to a settlement agreement regarding the interchange multidistrict litigation and the establishment of a litigation escrow account with a $500 million deposit.
The company’s investments in technology and payment infrastructures have been pivotal in driving their growth in payment transactions and revenue-generating services.

This summary encapsulates Visa’s strong financial performance in Q1 2026, characterized by substantial revenue and profit growth alongside effective shareholder value management through dividends and share repurchases.

Income Statement Summary

in millions, except percentages and per share data

	Three Months Ended December 31, 2025	YoY Change
GAAP
Revenue
Service revenue	$4,760	13 %
Data processing revenue	$5,544	17 %
International transaction revenue	$3,652	6 %
Other revenue	$1,214	33 %
Client incentives	-$4,269	12 %
Net revenue	$10,901	15 %
Total operating expenses	$4,164	27 %
Non-operating income (expense)	-$11	(65 %)
Effective income tax rate	13.0 %	-4 ppt
Net income	$5,853	14 %
Earnings per share	$3.03	17 %
Non-GAAP(1)
Total operating expenses	$3,391	16 %
Non-operating income (expense)	-$4	(112 %)
Effective income tax rate	18.4 %	1 ppt
Net income	$6,124	12 %
Earnings per share	$3.17	15 %

Visa Consolidated Balance Sheets (unaudited)

in millions, except per share data

Assets	December 31, 2025	September 30, 2025
Cash and cash equivalents	$14,756	$17,164
Restricted cash equivalents—U.S. litigation escrow	$3,300	$2,990
Investment securities	$1,641	$1,833
Settlement receivable	$3,212	$4,191
Accounts receivable	$3,231	$3,126
Customer collateral	$3,712	$3,625
Current portion of client incentives	$2,280	$2,158
Prepaid expenses and other current assets	$2,865	$2,679
Total current assets	$34,997	$37,766
Investment securities	$484	$999
Client incentives	$5,541	$5,157
Property, equipment and technology, net	$4,276	$4,236
Goodwill	$19,885	$19,879
Intangible assets, net	$27,664	$27,646
Other assets	$3,967	$3,944
Total assets	$96,814	$99,627
Liabilities
Accounts payable	$433	$555
Settlement payable	$4,337	$4,568
Customer collateral	$3,712	$3,625
Accrued compensation and benefits	$1,158	$1,863
Client incentives	$11,280	$10,369
Accrued liabilities	$5,576	$5,466
Current maturities of debt	$1,589	$5,569
Accrued litigation	$3,406	$3,033
Total current liabilities	$31,491	$35,048
Long-term debt	$19,588	$19,602
Deferred tax liabilities	$5,241	$5,549
Other liabilities	$1,717	$1,519
Total liabilities	$58,037	$61,718
Equity
Preferred stock, $0.0001 par value, 5 shares issued and outstanding as of December 31, 2025 and September 30, 2025	$551	$745
Common stock, $0.0001 par value:
Class A common stock, 1,683 and 1,691 shares issued and outstanding as of December 31, 2025 and September 30, 2025, respectively	$—	$—
Class B-1 and B-2 total common stock, 125 shares issued and outstanding as of December 31, 2025 and September 30, 2025	$—	$—
Class C common stock, 9 shares issued and outstanding as of December 31, 2025 and September 30, 2025	$—	$—
Right to recover for covered losses	-$19	-$124
Additional paid-in capital	$21,980	$21,934
Accumulated income	$16,018	$15,106
Accumulated other comprehensive income (loss):
Investment securities	$10	$12
Defined benefit pension and other postretirement plans	-$30	-$32
Derivative instruments	-$245	-$307
Foreign currency translation adjustments	$512	$575
Total accumulated other comprehensive income (loss)	$247	$248
Total equity	$38,777	$37,909
Total liabilities and equity	$96,814	$99,627