Key Highlights

  • Net revenue was $12.139 billion in the fiscal fourth quarter, up 13% from $10.724 billion.
  • Non-GAAP diluted EPS was $3.48, up 17%, while GAAP diluted EPS was $3.19, up 22%.
  • Cross-border volume rose 14% in constant dollars and processed transactions reached 74.2 billion, up 10%.
  • The quarterly dividend rises 16% to $0.78 per Class A share, payable December 1.
  • Visa repurchased about 11 million shares for $4.0 billion in the quarter, leaving $24.4 billion authorized.

Visa Earnings: How Strong Were Fiscal Fourth-Quarter Results?

Visa (NYSE:V) reported fiscal fourth-quarter results on Tuesday, October 27, for the three months ended September 30. Net revenue was $12.139 billion, up 13% in nominal and constant dollars, in line with analyst estimates of about $12.1 billion. Non-GAAP diluted EPS was $3.48, up 17% and ahead of estimates of about $3.43, while GAAP EPS was $3.19, up 22%.

The release did not include a fiscal 2027 outlook, so the quarter is best read through its volume and expense detail. Analyst estimates for fiscal 2027 revenue sit near $50.8 billion, which implies roughly 11% growth from the $45.9 billion just reported (calculated).

Visa Revenue Mix: Which Lines Drove the 13% Increase?

Data processing revenue rose 16% to $6.245 billion and service revenue rose 14% to $5.255 billion. International transaction revenue climbed 8% to $4.115 billion, while other revenue jumped 40% to $1.647 billion. Client incentives, which are deducted from revenue, grew 21% to $5.123 billion, a drag on net growth.

Volumes supported the lines. Payments volume rose 9% in constant dollars, cross-border volume excluding intra-Europe rose 14%, and processed transactions reached 74.2 billion, up 10%. For the full fiscal year, net revenue was $45.903 billion, up 15%, with non-GAAP EPS of $13.27, up 16%, and GAAP EPS of $12.32, up 21%.

Visa Costs and Cash: Why Do GAAP and Non-GAAP Profits Differ?

Non-GAAP operating expenses grew 12% to $4.051 billion, while GAAP expenses rose 7% to $4.877 billion. The gap reflects special items, including a litigation provision of about $469 million and a $282 million charitable contribution, plus $75 million of intangible amortization and acquisition costs. Equity investment gains of $155 million lifted non-operating income.

Operating cash flow for the year was $23.728 billion, against $23.059 billion a year earlier, and capital spending was $1.671 billion. Cash and investment securities stood at $14.2 billion, against total debt of $22.1 billion, and accrued litigation fell to $990 million from $3.033 billion.

Visa Capital Returns: What Does a 16% Dividend Rise Signal?

Visa repurchased about 11 million Class A shares for $4.0 billion in the quarter at an average of $369.12, and about 61 million for $20.5 billion over the year. Dividends and buybacks together reached $5.2 billion in the quarter and $25.6 billion for the year, with $24.4 billion of authorization remaining. The quarterly dividend rises 16% to $0.78 per share, payable on December 1 to holders of record on November 10.

Visa also has a pending $2.4 billion cash purchase of BioCatch, announced August 3, which is expected to close by the end of fiscal second quarter 2027, subject to regulatory approvals.

Visa Next Steps: What Should Investors Watch After This Report?

The first items to watch are management's fiscal 2027 commentary in its annual filing, cross-border growth after a 14% quarter, and the pace of client incentives against revenue. Regulatory approval for BioCatch, litigation developments and the November 10 dividend record date follow.