Visa reported a 13% increase in quarterly net revenue Tuesday, as growth in card spending, international payments and transactions lifted its fiscal fourth-quarter results. The payments company also raised its quarterly dividend by 16%.
Net revenue for the quarter ended September 30 reached $12.14 billion, up from $10.72 billion a year earlier, according to Visa’s earnings release. Net income under generally accepted accounting principles rose 18% to $6.0 billion. Diluted earnings per share increased 22% to $3.19, while adjusted earnings rose 17% to $3.48 a share.
The figures offer a view of activity moving through one of the world’s largest payment networks. Visa’s operating data showed continued growth in spending and transactions, although those network-wide totals do not show how the spending gains were distributed among households.
Card spending and cross-border payments rise
Visa said payments volume increased 9% in constant dollars in the September quarter, a measure that removes the effect of exchange-rate changes. Cross-border volume excluding transactions within Europe rose 14%, while total cross-border volume also increased 14%.
The company processed 74.2 billion transactions during the quarter, up 10% from a year earlier, according to the release. Those transactions measure the number of payments handled by the network, rather than the dollar value of purchases.
Visa reported service revenue of $5.3 billion, up 14%, and data-processing revenue of $6.2 billion, up 16%. International transaction revenue increased 8% to $4.1 billion. The company said its service revenue reflects payments volume from the preceding quarter, while its other revenue categories reflect current-quarter activity.
Client incentives reached $5.1 billion, up 21% from a year earlier, Visa said. Those incentives are deducted in arriving at the company’s reported net revenue, so the individual revenue categories cannot simply be added together to match the headline total.
A higher dividend and continued buybacks
Visa’s board increased the quarterly cash dividend to 78 cents per Class A share, payable December 1 to shareholders of record November 10, according to the company. Visa said it returned $5.2 billion through share repurchases and dividends during the quarter and $25.6 billion over the full fiscal year.
The company repurchased about 11 million Class A shares for $4.0 billion in the quarter, at an average price of $369.12. It had $24.4 billion remaining under its share-repurchase authorization at September 30, Visa said. Repurchases reduce the share count, which can help per-share earnings grow faster than net income.
For the full fiscal year, Visa reported net revenue of $45.9 billion, up 15%, and GAAP net income of $23.5 billion, up 17%. Full-year diluted earnings were $12.32 a share, compared with adjusted earnings of $13.27.
Legal costs remain part of the earnings picture
Visa said its fourth-quarter results included a $469 million special litigation provision associated with the interchange multidistrict litigation case. Other adjustments included a donation of investments to the Visa Foundation, a deferred tax expense, investment gains and acquisition-related costs.
The company cautioned that its adjusted measures should not replace GAAP results. Its release separately disclosed $1.7 billion in special litigation provisions for the full year, alongside $563 million in severance costs.
Visa also said its previously announced $2.4 billion cash acquisition of fraud-intelligence provider BioCatch remains subject to closing conditions and regulatory approvals. It expects that transaction to close by the end of its fiscal second quarter of 2027.
JBizNews Desk | San Francisco
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