Visa (V) stock slid 1.6% in Thursday after-hours trading after the payment network’s fiscal Q1 2026 earnings fell short of the average analyst estimate, even as revenue exceeded the Wall Street consensus. The total number of processed transactions, meanwhile, fell short of the consensus.
The credit card network giant repeated guidance for FY2026 EPS, net revenue, and operating expense growth, each in the low double digits.
For Q2, Visa (V) expects non-GAAP, adjusted constant-dollar basis, EPS growth in the high end of low double digits, net revenue growth in the low double digits, and operating expense growth in the mid-teens.
Fiscal Q1 2026 adjusted EPS of $3.17, trailing the average analyst estimate of $3.14, rose from $2.98 in Q4 2025 and $2.75 in last year’s Q1.
Net revenue for the quarter ended Dec. 31, 2025, was $10.9B, beating the $10.7B consensus and up from $10.7B in the prior quarter and $9.51B a year ago. Service revenue rose 13% Y/Y to $4.76B, data processing revenue climbed 17% to $5.54B, and international transaction revenue rose 6% to $3.65B. Client incentives, which subtracted $4.27B from revenue, increased 12% from a year ago.
Visa Inc. (V) total payment volume of $3.87T, topping the Visible Alpha consensus of $3.83T, climbed from $3.73T in Q4 2025 and $3.52T in Q1 2025. Total processed transactions rose 9% Y/Y to 69.4B, missing the Visible Alpha estimate of 69.7B.
Payments volume increased 8% from a year ago in constant dollars, cross-border volume increased 12%, and processed transactions advanced 9%. That compared with Q4 payments volume growth of 9%, cross-border volume growth of 12%, and processed transaction growth of 10%.
Q1 total operating expense of $4.16B dipped from $4.58B in the previous quarter and grew from $3.28B in the year-ago period.
“Visa delivered a very strong fiscal first quarter with net revenue up 15% year-over-year, GAAP EPS up 17%, and non-GAAP EPS up 15%, driven by resilient consumer spending and a strong holiday season, as well as continued strength in value-added services and commercial and money movement solutions,” said CEO Ryan McInerney.
Conference call at 5:00 PM ET.