Visa (V) Q1 2026 earnings summary

Executive summary

• Net revenue grew 15% year-over-year to $10.9 billion, driven by strong growth in payments volume, cross-border volume, and processed transactions, with GAAP net income up 14% to $5.9 billion and GAAP EPS up 17% to $3.03; non-GAAP net income was $6.1 billion and non-GAAP EPS $3.17, up 12% and 15% respectively.

• Shareholder returns totaled $5.1 billion through share repurchases and dividends, including $3.8 billion in buybacks and $1.3 billion in dividends.

• Innovations in digital credentials, tokenization, agentic commerce, stablecoins, B2B and P2P money movement, issuer processing, and risk/security solutions drove business momentum.

• Operating expenses increased 27% year-over-year, mainly due to higher litigation provisions related to the interchange multidistrict litigation.

• Value-added services and commercial/money movement solutions were key growth engines, with broad-based demand and strong client engagement.

Financial highlights

• Payments volume grew 10% year-over-year, with processed transactions up 9% to 69 billion; cross-border volume (excluding intra-Europe) rose 11%, and total cross-border volume up 12%.

• Service revenue grew 13% to $4.8 billion, data processing revenue up 17% to $5.5 billion, international transaction revenue up 6% to $3.7 billion, and other revenue up 33% to $1.2 billion.

• Value-added services revenue rose 32% to $3.2 billion, representing about half of overall revenue growth.

• Client incentives increased 12% year-over-year to $4.3 billion.

• Free cash flow for the quarter was $6.4 billion, with cash and equivalents at $16.9 billion as of December 31, 2025.

Outlook and guidance

• Fiscal Q2 and full-year 2026 net revenue growth expected in the low double digits on a non-GAAP adjusted constant-dollar basis, with operating expense growth projected in the mid-teens for Q2 and low double digits for the full year.

• Diluted EPS growth forecasted at the high end of low double digits for both Q2 and full year.

• Full-year tax rate now expected at 18–18.5% due to legal settlement benefits.

• Management expects current and projected sources of liquidity to be sufficient for more than the next 12 months.

• The company anticipates continued quarterly cash dividends, subject to board approval.