Visa Inc.
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals.
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| ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
This management’s discussion and analysis provides a review of the results of operations, financial condition and liquidity and capital resources of Visa Inc. and its subsidiaries (Visa, we, us, our or the Company) on a historical basis and outlines the factors that have affected recent earnings, as well as those factors that may affect future earnings. The following discussion and analysis should be read in conjunction with our unaudited consolidated financial statements and related notes included in Item 1—Financial Statements of this report.
Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that relate to, among other things, our future financial position, results of operations and cash flows; prospects, developments, strategies and growth of our business; anticipated expansion of our products in certain countries and territories; industry developments; anticipated timing and benefits of our acquisitions; expectations regarding litigation matters, investigations and proceedings; timing and amount of stock repurchases; sufficiency of sources of liquidity and funding; effectiveness of our risk management programs; and expectations regarding the impact of recent accounting pronouncements on our unaudited consolidated financial statements. Forward-looking statements generally are identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “projects,” “could,” “should,” “will,” “continue” and other similar expressions. All statements other than statements of historical fact could be forward-looking statements, which speak only as of the date they are made, are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond our control and are difficult to predict. We describe risks and uncertainties that could cause actual results or outcomes, or the timing of our results or outcomes, to differ materially from those expressed in, or implied by, any of these forward-looking statements in our SEC filings, including our Annual Report on Form 10-K, for the year ended September 30, 2025, and any subsequent reports on Forms 10-Q and 8-K. Except as required by law, we do not intend to update or revise any forward-looking statements as a result of new information, future events or otherwise.
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Overview
Visa is a global payments technology company that facilitates secure, reliable and efficient global commerce and money movement. We provide transaction processing services (primarily authorization, clearing and settlement) among consumers, issuing and acquiring financial institutions and sellers. We are focused on extending, enhancing and investing in our proprietary advanced transaction processing network, VisaNet, to offer a single connection point for facilitating money movement to multiple endpoints through various form factors and innovative technologies across more than 200 countries and territories. Visa is not a financial institution. We do not issue cards, extend credit or set rates and fees for account holders of Visa products.
Financial overview. A summary of our GAAP and non-GAAP operating results is as follows:
| Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change(1) | 2026 | 2025 | % Change(1) | ||||||||||||||||||||||||||||||
| (in millions, except percentages and per share data) | |||||||||||||||||||||||||||||||||||
Net revenue | $ | 11,230 | $ | 9,594 | 17 | % | $ | 22,131 | $ | 19,104 | 16 | % | |||||||||||||||||||||||
| Operating expenses | $ | 3,996 | $ | 4,159 | (4 | %) | $ | 8,160 | $ | 7,435 | 10 | % | |||||||||||||||||||||||
| Net income | $ | 6,021 | $ | 4,577 | 32 | % | $ | 11,874 | $ | 9,696 | 22 | % | |||||||||||||||||||||||
| Diluted earnings per share | $ | 3.14 | $ | 2.32 | 36 | % | $ | 6.17 | $ | 4.90 | 26 | % | |||||||||||||||||||||||
Non-GAAP operating expenses(2) | $ | 3,599 | $ | 3,071 | 17 | % | $ | 6,990 | $ | 5,988 | 17 | % | |||||||||||||||||||||||
Non-GAAP net income(2) | $ | 6,342 | $ | 5,442 | 17 | % | $ | 12,466 | $ | 10,905 | 14 | % | |||||||||||||||||||||||
Non-GAAP diluted earnings per share(2) | $ | 3.31 | $ | 2.76 | 20 | % | $ | 6.48 | $ | 5.51 | 18 | % | |||||||||||||||||||||||
(1)Figures in the table may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers.
(2)For a reconciliation of our GAAP to non-GAAP financial measures, see tables in Non-GAAP Financial Measures below.
Highlights. For the three and six months ended March 31, 2026, net revenue increased 17% and 16% over the prior-year comparable periods, respectively, primarily due to the growth in nominal cross-border volume, nominal payments volume and processed transactions, partially offset by higher client incentives. See Results of Operations—Net Revenue below for further discussion. For the three and six months ended March 31, 2026, exchange rate movements increased our net revenue growth by approximately one percentage point.
For the three months ended March 31, 2026, operating expenses decreased 4% over the prior-year comparable period, primarily driven by lower litigation provision, partially offset by higher personnel and marketing expenses. For the six months ended March 31, 2026, operating expenses increased 10% over the prior-year comparable period, primarily driven by higher marketing, personnel and professional fees. See Results of Operations—Operating Expenses below for further discussion. For the three and six months ended March 31, 2026, exchange rate movements negatively impacted our operating expense growth by approximately two percentage points.
For the three and six months ended March 31, 2026, non-GAAP operating expenses increased 17% over the prior-year comparable periods, primarily driven by higher personnel, marketing and professional fees.
Acquisition. In February 2026, we acquired Prisma Medios de Pago S.A.U. (Prisma) and Newpay S.A.U. (Newpay) in Argentina for a total purchase consideration of $1.5 billion in cash. See Note 2—Acquisitions to our unaudited consolidated financial statements.
Senior notes. In February 2026, we issued fixed-rate senior notes in a public offering in an aggregate principal amount of $3.0 billion, with maturities ranging between 3 and 10 years. See Note 8—Debt to our unaudited consolidated financial statements.
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Interchange multidistrict litigation. For the six months ended March 31, 2026, we recorded additional accruals of $894 million to address claims associated with the interchange multidistrict litigation. We also made deposits of $625 million into the U. S. litigation escrow account. The additional accruals related to the interchange multidistrict litigation could be higher or lower than the deposits made into the U.S. litigation escrow account. See Note 5—U.S. and Europe Retrospective Responsibility Plans and Note 15—Legal Matters to our unaudited consolidated financial statements.
Common stock repurchases. For the six months ended March 31, 2026, we repurchased 36 million shares of our class A common stock in the open market for $11.7 billion. As of March 31, 2026, our share repurchase program had remaining authorized funds of $13.2 billion. In April 2026, our board of directors authorized a new $20.0 billion share repurchase program, providing multi-year flexibility. See Note 11—Stockholders’ Equity to our unaudited consolidated financial statements.
Payments Volume and Processed Transactions
Payments volume is the primary driver for our service revenue, and the number of processed transactions is the primary driver for our data processing revenue.
Payments volume represents the aggregate dollar amount of purchases made with cards and other form factors carrying the Visa, Visa Electron, V PAY and Interlink brands and excludes Europe co-badged volume. Nominal payments volume is denominated in U.S. dollars and is calculated each quarter by applying an established U.S. dollar/foreign currency exchange rate for each local currency in which our volumes are reported. Processed transactions include payments and cash transactions, and represent transactions using cards and other form factors carrying the Visa, Visa Electron, V PAY, Interlink and PLUS brands processed on Visa’s networks.
The following tables present nominal payments and cash volume:
| U.S. | International | Visa | |||||||||||||||||||||||||||||||||
Three Months Ended December 31,(1) | |||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||
(in billions) | |||||||||||||||||||||||||||||||||||
| Nominal payments volume | |||||||||||||||||||||||||||||||||||
Consumer credit | $ | 685 | $ | 642 | $ | 867 | $ | 795 | $ | 1,552 | $ | 1,437 | |||||||||||||||||||||||
Consumer debit(2) | 856 | 806 | 973 | 842 | 1,829 | 1,648 | |||||||||||||||||||||||||||||
Commercial(3) | 293 | 272 | 193 | 167 | 486 | 439 | |||||||||||||||||||||||||||||
Total nominal payments volume(4) | $ | 1,835 | $ | 1,720 | $ | 2,033 | $ | 1,804 | $ | 3,868 | $ | 3,525 | |||||||||||||||||||||||
Cash volume(5) | 150 | 150 | 509 | 481 | 658 | 630 | |||||||||||||||||||||||||||||
Total nominal volume(4),(6) | $ | 1,984 | $ | 1,870 | $ | 2,542 | $ | 2,285 | $ | 4,526 | $ | 4,155 | |||||||||||||||||||||||
| U.S. | International | Visa | |||||||||||||||||||||||||||||||||
Six Months Ended December 31,(1) | |||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||
| (in billions) | |||||||||||||||||||||||||||||||||||
| Nominal payments volume | |||||||||||||||||||||||||||||||||||
| Consumer credit | $ | 1,338 | $ | 1,252 | $ | 1,709 | $ | 1,568 | $ | 3,047 | $ | 2,820 | |||||||||||||||||||||||
Consumer debit(2) | 1,689 | 1,577 | 1,906 | 1,670 | 3,595 | 3,247 | |||||||||||||||||||||||||||||
Commercial(3) | 583 | 540 | 376 | 327 | 959 | 867 | |||||||||||||||||||||||||||||
Total nominal payments volume(4) | $ | 3,610 | $ | 3,370 | $ | 3,991 | $ | 3,565 | $ | 7,601 | $ | 6,934 | |||||||||||||||||||||||
Cash volume(5) | 302 | 300 | 1,001 | 958 | 1,303 | 1,259 | |||||||||||||||||||||||||||||
Total nominal volume(4),(6) | $ | 3,913 | $ | 3,670 | $ | 4,992 | $ | 4,523 | $ | 8,904 | $ | 8,193 | |||||||||||||||||||||||
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The following table presents the changes in nominal and constant payments and cash volume:
U.S. | International | Visa | U.S. | International | Visa | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2025 vs. 2024(1),(4) | Six Months Ended December 31, 2025 vs. 2024(1),(4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nominal | Nominal | Constant(7) | Nominal | Constant(7) | Nominal | Nominal | Constant(7) | Nominal | Constant(7) | |||||||||||||||||||||||||||||||||||||||||||||||||
Payments volume growth | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer credit growth | 7 | % | 9 | % | 8 | % | 8 | % | 7 | % | 7 | % | 9 | % | 8 | % | 8 | % | 8 | % | ||||||||||||||||||||||||||||||||||||||
Consumer debit growth(2) | 6 | % | 16 | % | 10 | % | 11 | % | 8 | % | 7 | % | 14 | % | 10 | % | 11 | % | 9 | % | ||||||||||||||||||||||||||||||||||||||
Commercial growth(3) | 8 | % | 16 | % | 13 | % | 11 | % | 10 | % | 8 | % | 15 | % | 13 | % | 11 | % | 10 | % | ||||||||||||||||||||||||||||||||||||||
| Total payments volume growth | 7 | % | 13 | % | 9 | % | 10 | % | 8 | % | 7 | % | 12 | % | 10 | % | 10 | % | 8 | % | ||||||||||||||||||||||||||||||||||||||
Cash volume growth(5) | — | % | 6 | % | 2 | % | 4 | % | 1 | % | 1 | % | 4 | % | 2 | % | 4 | % | 1 | % | ||||||||||||||||||||||||||||||||||||||
| Total volume growth | 6 | % | 11 | % | 8 | % | 9 | % | 7 | % | 7 | % | 10 | % | 8 | % | 9 | % | 7 | % | ||||||||||||||||||||||||||||||||||||||
(1)Service revenue in a given quarter is primarily assessed based on nominal payments volume in the prior quarter. Therefore, service revenue reported for the three and six months ended March 31, 2026 and 2025, respectively, was based on nominal payments volume reported by our financial institution clients for the three and six months ended December 31, 2025 and 2024, respectively. On occasion, previously presented volume information may be updated. Prior period updates are not material.
(2)Includes consumer prepaid volume and Interlink volume.
(3)Includes large, medium and small business credit and debit, as well as commercial prepaid volume.
(4)Figures in the table may not recalculate exactly due to rounding. Percentage changes and totals are calculated based on unrounded numbers.
(5)Cash volume generally consists of cash access transactions, balance access transactions, balance transfers and convenience checks.
(6)Total nominal volume is the sum of total nominal payments volume and cash volume. Total nominal volume is provided by our financial institution clients, subject to review by Visa.
(7)Growth on a constant-dollar basis excludes the impact of foreign currency fluctuations against the U.S. dollar.
The following table presents the number of processed transactions:
| Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change(1) | 2026(1) | 2025(1) | % Change(1) | ||||||||||||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||||||||||||
| Visa processed transactions | 66,086 | 60,651 | 9 | % | 135,485 | 124,448 | 9 | % | |||||||||||||||||||||||||||
(1)Figures in the table may not recalculate exactly due to rounding. Percentage change is calculated based on unrounded numbers. On occasion, previously presented information may be updated. Prior period updates are not material.
Results of Operations
Net Revenue
The following table presents our net revenue earned in the U.S. and internationally:
| Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change(1) | 2026 | 2025 | % Change(1) | ||||||||||||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||||||||||||
| U.S. | $ | 4,319 | $ | 3,811 | 13 | % | $ | 8,482 | $ | 7,549 | 12 | % | |||||||||||||||||||||||
| International | 6,911 | 5,783 | 20 | % | 13,649 | 11,555 | 18 | % | |||||||||||||||||||||||||||
Net revenue | $ | 11,230 | $ | 9,594 | 17 | % | $ | 22,131 | $ | 19,104 | 16 | % | |||||||||||||||||||||||
(1)Figures in the table may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers.
Net revenue increased over the three and six-month prior-year comparable periods primarily due to the growth in nominal cross-border volume, nominal payments volume and processed transactions, partially offset by higher client incentives. Volume growth was driven primarily by continued resilience in consumer spending and ongoing expansion in digital commerce. Cross-border volume growth was supported by cross-border ecommerce and travel-related activity. Nominal payments volume growth of 10% was supported by broad-based growth across both credit
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and debit spending, with ecommerce continuing to grow faster than face-to-face spend. We expect that the ongoing shift toward digital commerce and electronic payments will continue; however, the extent to which these trends support volume increases will depend on a number of factors, including consumer spending levels and broader macroeconomic conditions.
Our net revenue is impacted by the overall strengthening or weakening of the U.S. dollar as payments volume and related revenue denominated in local currencies are converted to U.S. dollars. For the three and six months ended March 31, 2026, exchange rate movements increased our net revenue growth by approximately one percentage point. Foreign exchange rate movements and volatility have contributed to periodic variability in our results, and may continue to do so in the future.
The following table presents the components of our net revenue:
| Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||||||||||||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-04-29 | MCINERNEY RYAN | Chief Executive Officer | Sell | -31,455 | $340.14 | -$10,699,204 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-07-29 10-Q expected by 2026-08-11 (in 89 days)
- ~2026-11-05 10-K expected by 2026-11-18 (in 188 days)
- ~2027-01-29 10-Q expected by 2027-02-11 (in 273 days)
- ~2027-04-28 10-Q expected by 2027-05-11 (in 362 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-04-29 10-Q Quarterly Report
- 2026-04-28 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2026-04-13 SC TO-I SC TO-I
- 2026-04-06 S-4/A S-4/A
- 2026-03-05 S-4 Registration (Merger)
- 2026-02-27 8-K Other Events
- 2026-02-12 8-K Other Events; Financial Statements and Exhibits
- 2026-01-30 10-Q Quarterly Report
- 2026-01-29 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2025-12-30 8-K Other Events
- 2025-12-23 8-K Other Events
- 2025-11-10 8-K Other Events; Financial Statements and Exhibits
- 2025-11-06 10-K Annual Report
- 2025-10-28 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2025-09-29 8-K Officer/Director Change; Financial Statements and Exhibits