Visa (V) Q1 2026 Financial Results Summary
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 |