01—Abstract
Summary
Summary of the 10-Q filed January 30, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb and consistent dividend payments. The company maintains a strong liquidity position, indicating its capacity to manage ongoing operations, investments, and potential legal contingencies.
02—Key points
Key Highlights
- Net revenue grew 15% year-over-year to $10.9 billion, fueled by strong payment volumes and processed transactions.
- Net income increased 14% to $5.85 billion, with diluted EPS rising to $3.03.
- Operating expenses increased 27%, largely driven by a $707 million litigation provision related to interchange multidistrict litigation.
- Non-GAAP operating expenses, excluding the litigation provision and other items, increased a more moderate 16%.
- Visa repurchased $3.8 billion of its Class A common stock and declared a quarterly dividend of $0.67 per share.
- The company made a $500 million deposit into its U.S. litigation escrow account.
- Visa reiterated its confidence in its liquidity position to meet short-term and long-term obligations.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed January 30, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $10.90B$9.51B | +14.6% |
| Operating Expenses | $4.16B$3.28B | +27.1% |
| Operating Income | $6.74B$6.23B | +8.1% |
| Net Income | $5.85B$5.12B | +14.3% |
05—Questions
Frequently Asked Questions
What was the primary driver of Visa's revenue growth in this quarter?
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.
What is the significance of the increased litigation provision?
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.
How is Visa returning capital to shareholders?
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.
What is Visa's outlook on its financial health and liquidity?
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.
06—Continue