Visa(US:V)2025-10-28 20:06Financial Performance - Fiscal Q4 2025 net revenue reached $10.7 billion, a 12% increase year-over-year, while full-year net revenue was $40.0 billion, up 11%[1][4][14] - GAAP net income for Q4 2025 was $5.1 billion, a 4% decrease, with GAAP earnings per share at $2.62; full-year GAAP net income was $20.1 billion, a 2% increase[1][5][13] - Non-GAAP net income for Q4 2025 was $5.8 billion, a 7% increase, with non-GAAP earnings per share at $2.98; full-year non-GAAP net income was $22.5 billion, up 11%[1][5][13] - Total net revenue for the three months ended September 30, 2025, was $10,724 million, a 12% increase year-over-year[30] - For the twelve months ended September 30, 2025, Visa reported a net income of $20,058 million, an increase of 1.6% from $19,743 million in 2024[36] - Non-GAAP net income for the twelve months ended September 30, 2025, was $22,542 million, reflecting an increase from $20,058 million in GAAP net income[41] Revenue Breakdown - Service revenue reached $4,602 million, up 10% year-over-year, while data processing revenue increased by 17% to $5,394 million[30] - International transaction revenue grew by 10% to $3,800 million, and other revenue surged by 21% to $1,176 million[30] Transaction Metrics - Payments volume increased by 9% in Q4 2025 and 8% for the full year on a constant-dollar basis[2][14] - Cross-border volume excluding intra-Europe transactions grew by 11% in Q4 2025 and 13% for the full year[2][15] - Total processed transactions for Q4 2025 were 67.7 billion, a 10% increase year-over-year, with 257.5 billion transactions processed for the full year, also a 10% increase[8][15] Operating Expenses - GAAP operating expenses for Q4 2025 were $4.6 billion, a 40% increase, primarily due to litigation provisions and personnel expenses[10][17] - Total operating expenses for the quarter were $4,576 million, reflecting a 40% increase year-over-year, primarily due to litigation provisions[34] - Visa's total operating expenses for the quarter were $4,576 million, an increase of 39.8% from $3,268 million in the same quarter of 2024[38] - Visa's GAAP operating expenses for the twelve months ended September 30, 2024, were $12,331 million[42] - Non-GAAP operating expenses for the same period were $11,609 million, reflecting a decrease in costs[42] Shareholder Returns - Visa repurchased approximately 14 million shares for $4.9 billion in Q4 2025, totaling 54 million shares repurchased for $18.2 billion in the full year[23] - The board of directors declared a 14% increase in the quarterly cash dividend to $0.670 per share, payable on December 1, 2025[24] - The company repurchased $18,316 million of Class A common stock during the twelve months ended September 30, 2025, compared to $16,713 million in 2024[36] Cash and Assets - Cash and cash equivalents as of September 30, 2025, totaled $17,164 million, up from $11,975 million in the previous year[33] - Total assets increased to $99,627 million from $94,511 million year-over-year[33] - Visa's cash, cash equivalents, restricted cash, and restricted cash equivalents at the end of the period were $24,987 million, up from $19,763 million at the beginning of the period[36] Taxation - The effective income tax rate for the quarter was 18.2%, a 2 percentage point increase from the previous year[30] - The effective income tax rate for the quarter ended September 30, 2025, was 18.2%[41] - The effective income tax rate for GAAP was 17.4%, while the non-GAAP effective tax rate was slightly higher at 17.6%[42] Other Financial Metrics - The company reported a significant increase in non-operating income, which rose by 222% to $75 million for the quarter[30] - Operating income for the quarter ended September 30, 2025, was $6,148 million, slightly down from $6,349 million in the prior year, indicating a decrease of 3.2%[38] - Visa incurred litigation provisions amounting to $434 million, impacting overall profitability[42] - Acquisition-related costs totaled $104 million, indicating ongoing strategic investments[42] - Visa's amortization of acquired intangible assets was $178 million, reflecting the impact of previous acquisitions[42] - Charitable contributions accounted for $67 million, demonstrating the company's commitment to social responsibility[42] - Indirect taxes resulted in a net expense of $118 million, affecting the overall financial performance[42]