Visa (V) Q1 2026 earnings summary

Executive summary

• Net revenue grew 15% year-over-year to $10.9 billion, 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, both up 12% and 15% respectively.

• Payments volume increased 8–10% year-over-year, cross-border volume excluding intra-Europe rose 11%, and processed transactions grew 9%, reflecting resilient consumer spending and global expansion.

• Shareholder returns totaled $5.1 billion through $3.8 billion in share repurchases and $1.3 billion in dividends; $21.1 billion remains authorized for buybacks.

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

• Significant progress in digital credentials, tokenization, and stablecoin capabilities, with over 17.5 billion tokens issued globally and new advisory services launched.

Financial highlights

• Service revenue grew 13–17%, data processing revenue up 13–17%, international transaction revenue up 6%, and other revenue up 33%.

• Value-added services revenue rose 28–32% to $3.2 billion, and commercial and money movement solutions revenue up 20%.

• Client incentives increased 12–15% 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.

• Operating cash flow was $6.78 billion, up from $5.40 billion in the prior year.

Outlook and guidance

• Full-year and Q2 adjusted net revenue growth expected in the low double digits, with similar adjusted operating expense growth.

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

• Full-year tax rate now expected between 18%-18.5% due to legal settlement benefits, with long-term tax rate guidance unchanged at 19%-20%.

• 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.