Key Highlights

  • Visa reported fiscal fourth quarter net revenue of USD 12.1 billion, a 13% annual increase that beat estimates.
  • Non-GAAP earnings per share reached USD 3.48 for the quarter, a 13% increase that topped analyst projections.
  • The board raised Visa's quarterly dividend 16% to USD 0.780 per share, payable in December.
  • Visa agreed to acquire BioCatch for USD 2.4 billion in cash to expand its fraud intelligence capabilities.

Fiscal Fourth Quarter Revenue and Volume Growth

Visa (NYSE:V) reported fiscal fourth quarter net revenue of USD 12.1 billion, up 13% from a year earlier on both a nominal and constant dollar basis. Payments volume rose 9% year over year, while total cross border volume increased 14% and processed transactions climbed 10% to 74.2 billion.

Data processing revenue grew 16% to USD 6.2 billion, and international transaction revenue rose 8% to USD 4.1 billion. Other revenue, which includes value added services, increased 40% to USD 1.6 billion. For the full fiscal year, net revenue reached USD 45.9 billion, up 15%, which the company described as its strongest annual growth rate in more than 15 years outside of post pandemic recovery periods and acquisitions.

Earnings Growth and Capital Return Program

GAAP net income for the quarter was USD 6.0 billion, or USD 3.19 per share, up 18% and 22% respectively from the prior year period. Non-GAAP net income reached USD 6.6 billion, or USD 3.48 per share, a 13% increase, after adjusting for litigation provisions tied to the interchange multidistrict litigation matter and other special items.

Visa repurchased approximately 11 million shares for USD 4.0 billion during the quarter, bringing full year buybacks to USD 20.5 billion, with USD 24.4 billion remaining under its repurchase authorization. The board separately raised the quarterly dividend 16% to USD 0.780 per share, payable December 1 to shareholders of record as of November 10. Full year share repurchases and dividends combined totaled USD 25.6 billion.

Fiscal 2027 Outlook and Strategic Developments

For fiscal 2027, the company guided to double digit growth in both revenue and earnings, alongside the renewal of about one quarter of its total payments volume contracts during the year. Visa also disclosed a definitive agreement to acquire BioCatch for USD 2.4 billion in cash, a deal aimed at expanding behavioral fraud detection capabilities at the account level.

Separately, the company said it received approval from the People's Bank of China to begin preparations for processing domestic transactions in mainland China, a market it has not previously been able to access directly. Management also pointed to expanding stablecoin and tokenized deposit infrastructure across multiple blockchain networks as an area of continued investment. Operating expenses on a GAAP basis rose 7% for the quarter, while non-GAAP operating expenses increased 12%, reflecting higher marketing and personnel spending that could weigh on margin trends if growth moderates.

Signposts for Fiscal 2027

Progress on the BioCatch acquisition's close and integration, execution of the mainland China processing approval, and the pace of payments volume contract renewals are among the items the company has flagged for the year ahead. Quarterly updates on non-GAAP operating expense growth relative to revenue, along with the remaining USD 24.4 billion share repurchase authorization, are additional data points against which upcoming quarters may be measured.