Visa Inc. (V) Earnings & Analysis

Latest quarter

Visa reported Q3 FY2026 revenue of $11.6 billion, up 14.4% from $10.2 billion in Q3 FY2025. The company reported adjusted EPS of $3.32 for the quarter to June 30, 2026, above the consensus of $3.23; revenue of $11.6 billion was also above the consensus of $11.4 billion.

Visa’s filing attributed revenue growth primarily to higher nominal cross-border volume, payments volume and processed transactions, partly offset by higher client incentives. The filing said payments volume grew 11%, while value-added-services revenue rose to $3.8 billion from $2.8 billion. Diluted EPS was $2.97, compared with $2.69 a year earlier. Operating margin was 59.1%, versus 60.7% in Q3 FY2025, while gross margin was 100.0% in both periods. Free cash flow was $6.1 billion, compared with $6.3 billion a year earlier.

Visa’s call commentary said quarterly net revenue and EPS were ahead of its expectations, while the materials provided do not state a comparable numerical Q3 FY2026 guidance range.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Ryan McInerney said third-quarter payments volume grew 10% in constant dollars and processed transactions grew 10%, which he attributed to consumer spending. Chris Suh said U.S. payments volume grew 10%, with credit up 11% and debit up 9%, and said Visa did not see signs of lower-spend consumers weakening in its volumes. He said cross-border volume excluding intra-Europe rose 12%, with cross-border e-commerce up 16% and travel-related cross-border volume up 10%.

Suh said revenue exceeded Visa’s expectations because key business drivers, value-added-services revenue and foreign exchange were higher than expected. He said service-revenue growth reflected payments volume, pricing and card benefits, while data-processing revenue reflected processed transactions, pricing, value-added services and cross-border mix. He said value-added-services revenue grew 34% in constant dollars to $3.8 billion, driven by marketing-service engagements, pricing and the Prisma acquisition.

McInerney said Visa is using AI in engineering, client service and model orchestration, and said it had more than 150 AI-powered applications and shipped more than 300 major product releases over the preceding 12 months. He also said Visa announced role eliminations, primarily in technology and product teams, as it reorganizes operations and reinvests in growth opportunities. Suh said operating expenses rose 17%, primarily from marketing and personnel expenses, and cited foreign-exchange effects, deferred-compensation mark-to-market costs and some marketing expenses shifting into Q4.

In response to analyst questions on issuer processing, McInerney said the combined DPS and Pismo offering targets smaller and midsize banks and fintechs seeking integrated debit and credit processing, rather than large issuers with customized separate platforms. On competition in Europe, McInerney said issuers seek innovation, reliability and access to Visa products, and said Visa expects credentials from wins there over coming years. Suh said Visa expects Q4 revenue growth to be supported by its underlying business drivers, while volatility and incentives are offsetting considerations.

Guidance

Chris Suh said Visa now expects full-year FY2026 net revenue growth and operating-expense growth at the low end of low teens, and full-year EPS growth at the low end of mid-teens. Visa expects Q4 FY2026 net revenue growth at the high end of low double digits, operating-expense growth in the low double digits, EPS growth at the low end of mid-teens, and a tax rate around 19%.