Visa(US:V)2026-01-29 23:08Financial Performance - For the three months ended December 31, 2025, net revenue increased by 15% to $10,901 million compared to $9,510 million in the prior year[91]. - Net income for the same period was $5,853 million, reflecting a 14% increase from $5,119 million[91]. - Non-GAAP net income increased by 12% to $6,124 million compared to $5,463 million in the prior year[91]. - Non-GAAP diluted earnings per share increased by 15% to $3.17 from $2.75 in the prior year[91]. - Service revenue increased by 13% to $4,760 million in Q4 2025, driven by a 9% growth in nominal payments volume[3]. - Data processing revenue rose 17% to $5,544 million, supported by a 9% increase in processed transactions[3]. Operating Expenses - Operating expenses rose by 27% to $4,164 million, primarily due to higher litigation provisions[92]. - Total operating expenses for the three months ended December 31, 2025, were $4,164 million, a 27% increase from $3,276 million in 2024[5]. - The company recorded an additional accrual of $707 million related to interchange multidistrict litigation for the quarter[94]. Shareholder Actions - The company repurchased 11 million shares of class A common stock for $3.8 billion, with remaining authorized funds for repurchase at $21.1 billion[95]. - The company repurchased $3.8 billion of its class A common stock in the open market during the three months ended December 31, 2025[13]. - For the three months ended December 31, 2025, the company declared and paid $1.3 billion in dividends[15]. Cash Flow - Cash provided by operating activities increased to $6,780 million in Q4 2025, up from $5,396 million in 2024[10]. Market and Transaction Metrics - Payments volume, a key driver of service revenue, is calculated in U.S. dollars and excludes Europe co-badged volume[100]. - Processed transactions, which include payments and cash transactions, represent the total transactions processed on Visa's networks[100]. - Total nominal payments volume for the three months ended September 30, 2025, reached $3,732 billion, a 9% increase compared to $3,409 billion in 2024[1]. - Exchange rate movements contributed approximately one percentage point to net revenue growth for the quarter[91]. Tax and Regulatory Changes - The effective income tax rate decreased to 13% in Q4 2025 from 17% in 2024, primarily due to a $333 million deferred tax benefit[9]. - FASB issued ASU 2024-03 in November 2024, requiring additional disclosure on specific expense categories, effective for annual periods beginning October 1, 2027[119]. - FASB issued ASU 2025-06 in September 2025, modernizing accounting for internal-use software, effective for annual and interim periods beginning October 1, 2028[120]. - No significant changes to market risks since September 30, 2025[121]. Litigation and Escrow - The company deposited $500 million into a U.S. litigation escrow account for claims associated with interchange multidistrict litigation[17].