San Francisco, January 29, 2026, 13:38 PST
- Visa posted adjusted EPS of $3.17 for its fiscal first quarter, with revenue hitting $10.9 billion—both figures exceeded expectations.
- Payments volume grew 8% in constant dollars; cross-border transactions jumped 12%.
- Shares dropped roughly 1.4% in after-hours trading.
Visa (NYSE: V) beat expectations with its fiscal first-quarter earnings and revenue, buoyed by stronger cardholder spending, though shares dipped in after-hours trading. The payments giant posted adjusted earnings of $3.17 per share on revenue of $10.9 billion, topping estimates. Still, the stock fell roughly 1.4% following the release. 1
The report arrives as investors seek clear signals on consumer activity. Visa’s network, used by billions daily, serves as a barometer for spending. Its payments volume often provides a fast snapshot of cash flow through households and businesses. 2
The payments sector remains in focus as peers report earnings. Mastercard (NYSE: MA) posted solid results and announced plans to reduce its global workforce by about 4%. Investors now turn to American Express (NYSE: AXP), which is set to report on Friday. 3
Visa reported net income of roughly $5.9 billion, or $3.03 per share, for the quarter ending Dec. 31. On a non-GAAP basis, profit hit $6.1 billion, or $3.17 per share. Net revenue climbed 15% to $10.9 billion, or 13% when adjusted for currency fluctuations. CEO Ryan McInerney highlighted “resilient consumer spending and a strong holiday season.” 4
Payments volume on the network increased 8% in constant dollars. Total cross-border volume—card spending outside the country of issuance—grew 12%, with cross-border excluding Europe up 11%. Processed transactions jumped 9% to 69.4 billion, according to the company.
Visa’s revenue remained heavily weighted toward processing and service fees. Data processing revenue climbed 17% to $5.5 billion, while service revenue grew 13% to $4.8 billion. Client incentives, which cover rebates and payments to banks and partners for promoting Visa cards, rose 12% to $4.3 billion.
Costs took a hit. Operating expenses jumped 27% to $4.2 billion, pushed mainly by a $707 million litigation reserve related to interchange multidistrict litigation—a protracted merchant dispute over card “swipe” fees. Visa also logged a $333 million deferred tax benefit, stemming from a shift in U.S. tax rules on some foreign earnings.
Visa announced it reached a superseding and amended settlement agreement on Nov. 10 to settle injunctive-relief class claims tied to the interchange litigation, pending court approval. The company also disclosed a $500 million deposit into its litigation escrow account last December, part of a plan designed to protect both itself and Class A shareholders from specific case liabilities.
During the quarter, the company handed back $5.1 billion to shareholders via share buybacks and dividends. About $3.8 billion of that went to repurchasing nearly 11 million shares, each averaging $342.13. The board also announced a quarterly cash dividend of $0.670 per share, set for payment on March 2 to those holding shares by Feb. 10.
There are clear risks, though. Tariff-driven cost hikes could pinch middle-income buyers, and Washington’s toying with ideas that might upend credit economics, even if Visa itself isn’t setting rates. Barclays managing director Michael Miller called a proposed credit-card interest rate cap “an unlikely outcome that it sticks.” Airline-loyalty expert Pooja Gardemal added that a 10% ceiling would wipe out “a huge chunk of profit.” 5
Visa’s executive team will hold a webcast on Thursday to review the quarter. Investors are keenly watching for updates on travel-related cross-border trends and the pace of ongoing incentives and legal expenses.
