01—Abstract
Summary
Summary of the 10-Q filed April 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Visa Inc. reported strong financial results for the fiscal second quarter ended March 31, 2026.
Net revenue saw a significant increase of 17%a year-over-year, driven by robust growth in payments volume, processed transactions, and cross-border activity, partially offset by higher client incentives. Net income also surged by 32%, reflecting this top-line growth and a notable decrease in litigation provisions. The company successfully integrated its recent acquisition of Prisma and Newpay in Argentina.
Operational expenses showed a mixed trend, decreasing 4% for the quarter primarily due to lower litigation provisions, but increasing 10% for the first six months of the fiscal year driven by investments in personnel and marketing. Visa continued its aggressive capital return program, repurchasing $11.7 billionb of its Class A common stock during the first six months and maintaining its dividend payments. The company's liquidity remains strong, with sufficient resources to meet its obligations and continue strategic investments.
02—Key points
Key Highlights
- Net revenue increased by 17% to $11.23 billion for the three months ended March 31, 2026, compared to the prior year.
- Net income grew by 32% to $6.02 billion for the three months ended March 31, 2026, compared to the prior year.
- Operating expenses decreased by 4% to $3.996 billion for the three months ended March 31, 2026, primarily due to lower litigation provisions.
- Visa acquired Prisma and Newpay in Argentina for $1.5 billion in cash in February 2026.
- The company repurchased $11.7 billion of its Class A common stock in the open market during the six months ended March 31, 2026.
- Total processed transactions increased by 9% for both the three and six-month periods ended March 31, 2026.
- Visa declared a quarterly cash dividend of $0.67 per share, payable in June 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed April 29, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $11.23B$9.59B | +17.1% |
| Operating Expenses | $4.00B$4.16B | −3.9% |
| Operating Income | $7.23B$5.43B | +33.1% |
| Net Income | $6.02B$4.58B | +31.5% |
05—Questions
Frequently Asked Questions
What were the primary drivers of Visa's revenue growth in the quarter?
Visa's revenue growth of 17% was primarily driven by an increase in nominal payments volume, a rise in processed transactions, and strong cross-border activity. Growth in value-added services, including issuing solutions and advisory services, also contributed significantly.
How did litigation impact Visa's financial results?
For the three months ended March 31, 2026, litigation provisions decreased by 67% to $329 million, significantly contributing to the decrease in operating expenses and the overall increase in net income. The company made deposits of $625 million into its U.S. litigation escrow account related to the interchange multidistrict litigation.
What is Visa's strategy for capital allocation?
Visa continues to prioritize returning capital to shareholders through significant share repurchases and regular dividend payments. The company repurchased $11.7 billion in the first six months of fiscal 2026 and authorized a new $20 billion share repurchase program. They also declared a quarterly dividend of $0.67 per share.
What was the impact of the Prisma and Newpay acquisition?
In February 2026, Visa acquired Prisma Medios de Pago S.A.U. and Newpay S.A.U. in Argentina for $1.5 billion in cash. This acquisition is expected to expand Visa's presence in the Latin American market. Acquisition-related costs were noted in operating expenses.
06—Continue