Visa Inc. V delivered third-quarter fiscal 2026 adjusted earnings of $3.32 per share, up 11% year over year and beating the Zacks Consensus Estimate by 2.8%.
Net revenues came in at $11.63 billion, rising 14% year over year and topping the consensus mark by 2.3%.
The strong quarterly results reflected resilient spending trends, higher cross-border volumes and solid network activity, including a 10% year-over-year increase in payments volume on a constant-dollar basis. However, the upside was partly offset by increased operating expenses.
Visa Inc. Price, Consensus and EPS Surprise
Visa Inc. price-consensus-eps-surprise-chart | Visa Inc. Quote
Visa’s Q3 Highlights
On a constant-dollar basis, cross-border volume increased 13% year over year, reflecting steady travel and e-commerce activity. Excluding transactions within Europe, cross-border volume rose 12% in constant dollars.
Network throughput also improved. Total processed transactions were 71.7 billion for the June quarter, marking a 10% year-over-year increase.
Adjusted operating expenses were $3.88 billion, up 17% year over year. It came a bit higher than our estimate of $3.83 billion. Higher personnel costs of $2.46 billion and marketing expenses of $649 million were notable contributors, alongside general and administrative expenses of $503 million. The litigation provision totaled $253 million in the quarter, down sharply from $615 million a year ago.
V’s Segment Performance
Service revenues increased 14% year over year to $4.92 billion and beat our model estimate of $4.89 billion, supported by expanding payment volumes. Data processing revenues climbed 17% to $6.04 billion and surpassed our estimate of $5.94 billion, pointing to healthy growth in transactions processed across Visa’s network.
International transaction revenues rose 6% to $3.85 billion and beat our model estimate of $3.83 billion, while other revenues advanced 45% to $1.50 billion, topping our estimate of $1.21 billion. Offsetting a portion of these gains, client incentives, recorded as a contra-revenue item, increased 18% to $4.68 billion. It came in higher than our estimate of $4.51 billion.
Visa Returns Capital Aggressively
Visa continued to emphasize shareholder returns. During the quarter, the company repurchased $4.9 billion of Class A shares and paid $1.3 billion in dividends, totaling $6.2 billion returned to its shareholders. The company had leftover authorized funds of $28.4 billion under its repurchase program as of June 30, 2026.
Cash generation remained solid. Free cash flow was $6.1 billion in the quarter, after $417 million of capital expenditures. Visa ended June 30, 2026, with $13.9 billion in cash, cash equivalents and investment securities. Its long-term debt amounted to $20.9 billion, up from $19.6 billion at fiscal 2025-end. Current maturities of debt were at $3 billion.
V Outlines Strong Growth Targets Ahead
For the fourth quarter of fiscal 2026, Visa expects adjusted net revenue growth in the low-double-digit to low-teens range and operating expense growth in the high-end of low-double-digit while projecting adjusted earnings per share growth in the mid-teens range.
For fiscal 2026, the company now anticipates adjusted net revenue growth in the low-end of the mid-teens range and operating expense growth in the mid-teens range. Adjusted earnings per share are still expected to grow in the mid-teens.
V’s Zacks Rank
Visa currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Are Visa’s Peers Placed This Quarter?
Major rival Mastercard Incorporated MA is scheduled to report second-quarter 2026 results on July 30. The Zacks Consensus Estimate for adjusted earnings is pegged at $4.77 per share, indicating 14.9% year-over-year growth. The same for revenues is pegged at $9.1 billion, signaling an 11.4% increase. MA beat earnings estimates in each of the past four quarters with an average surprise of 5.5%.
American Express Company AXP reported second-quarter 2026 EPS of $4.53, which surpassed the Zacks Consensus Estimate by 2.7%. The bottom line advanced 11% year over year. Total revenues, net of interest expense, improved 10% year over year to $19.6 billion. AXP’s quarterly results were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by elevated operating expenses.
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