Visa beat Wall Street expectations in its fiscal fourth quarter, with net revenue up 13% to $12.1 billion. Shares still slipped in after-hours trading, suggesting investors focused more on fiscal 2027 guidance and higher renewal activity.
Visa reported net revenue of $12.1 billion, up 13% year-over-year, for its fiscal fourth quarter on October 27, 2026. Adjusted earnings per share reached $3.48, up 17%. Despite the beat, shares slipped 1.1% in after-hours trading to $397.42.
Full-year revenue hits $46 billion
Full-year net revenue reached $46 billion, up 15%, the strongest annual growth in more than 15 years excluding the post-pandemic rebound and acquisitions. Chief Executive Ryan McInerney emphasized that "2026 was a milestone year for Visa."
Business drivers were broad. Payments volume rose 9% in constant dollars, while cross-border volume excluding intra-Europe transactions grew 14%. Visa also returned $5.2 billion to shareholders in the quarter. The board raised the quarterly dividend by 16% to $0.780 per share.
Guidance points to a larger renewal cycle
For fiscal 2027, management expects net revenue growth in the low-double-digit range on a non-GAAP adjusted constant-dollar basis. Operating expense growth is also expected in the low-double-digit range.
Management noted that about 25% of payments volume is up for renewal in fiscal 2027, compared with 20% in fiscal 2026. Chief Financial Officer Chris Suh indicated these renewals are broader and include more comprehensive value-added services and commercial services. The report suggests this could mean higher incentive costs in the near term.
Client incentives already increased 21% to $5.1 billion in the quarter.
BioCatch deal awaits approval
Visa announced a definitive agreement on August 3, 2026, to acquire BioCatch, a fraud intelligence provider, for $2.4 billion in cash. The deal is subject to regulatory approvals and is expected to close by the end of fiscal second quarter 2027.
The company generated $22.1 billion in free cash flow for fiscal 2026, and its full-year share repurchases totaled $20.5 billion.
Source: Investing.com
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