10-QPeriod: Q1 FY2026

VISA INC. Quarterly Report for Q1 Ended Dec 31, 2025

Filed January 30, 2026For Securities:V

Summary

Visa Inc. reported strong financial results for the fiscal second quarter ended December 31, 2025. Net revenue saw a significant 15% year-over-year increase to $10.9 billion, driven by robust growth in payments volume, processed transactions, and cross-border activity. This top-line growth translated into a healthy 14% increase in net income to $5.85 billion, or $3.03 per diluted share. Despite a notable increase in operating expenses, primarily due to a higher litigation provision, the company demonstrated effective cost management on a non-GAAP basis. Visa continued its commitment to shareholder returns through substantial share repurchases totaling $3.8 billion and consistent dividend payments. The company maintains a strong liquidity position, indicating its capacity to manage ongoing operations, investments, and potential legal contingencies.

Financial Highlights

44 data points
Beta

Revenue

$10.90B

Net Income

$5.85B

53.7% Net Margin

Total Assets

$96.81B

Cash & Equivalents

$14.76B

Free Cash Flow

$6.78B

Financial Statements
Beta
Revenue$10.90B
Operating Expenses$4.16B
Operating Income$6.74B
Net Income$5.85B

Key Highlights

  • 1Net revenue grew 15% year-over-year to $10.9 billion, fueled by strong payment volumes and processed transactions.
  • 2Net income increased 14% to $5.85 billion, with diluted EPS rising to $3.03.
  • 3Operating expenses increased 27%, largely driven by a $707 million litigation provision related to interchange multidistrict litigation.
  • 4Non-GAAP operating expenses, excluding the litigation provision and other items, increased a more moderate 16%.
  • 5Visa repurchased $3.8 billion of its Class A common stock and declared a quarterly dividend of $0.67 per share.
  • 6The company made a $500 million deposit into its U.S. litigation escrow account.
  • 7Visa reiterated its confidence in its liquidity position to meet short-term and long-term obligations.

Frequently Asked Questions

Visa's net revenue increased by 15% year-over-year primarily due to growth in nominal cross-border volume, processed transactions, and nominal payments volume. This indicates strong consumer spending and continued adoption of Visa's payment network globally.

The litigation provision increased significantly to $708 million from $44 million in the prior year, primarily due to a $707 million accrual related to the interchange multidistrict litigation. While this impacted GAAP operating expenses and net income, Visa also made a $500 million deposit into a related escrow account. The company is managing this legal matter, which is a key area to monitor for potential future impacts.

Visa demonstrated its commitment to shareholder returns by repurchasing $3.8 billion of its Class A common stock in the open market during the quarter. Additionally, the company declared a quarterly cash dividend of $0.67 per share, reflecting consistent profitability and cash flow generation.

Visa expressed confidence in its liquidity position, stating that its current and projected sources of liquidity are sufficient to meet its needs for more than the next 12 months. This is supported by strong cash flow from operations and a healthy cash and investment portfolio, allowing the company to manage its business, investments, and potential legal contingencies.