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    V
    Earnings call· Sep 2025(Q4 FY25)

    VISA INC. V

    Oct 28, 2025 Source

    Executive summary

    Visa Q4 FY25 — Strong Performance Driven by Innovation and 'Visa as a Service' Stack

    Visa concluded FY25 with robust financial results, emphasizing its role as a 'hyperscaler' through its 'Visa as a Service' stack. The company highlighted significant innovation across its network, services, and solutions layers, particularly in agentic commerce and stablecoins. Management provided an optimistic FY26 outlook, projecting low double-digit growth for adjusted net revenue and EPS, underpinned by continued investment in strategic initiatives.

    Highlights

    5

    • Fiscal fourth quarter net revenue grew 12% year-over-year to $10.7 billion.

    • Full year net revenue grew 11% to $40 billion, and EPS grew 14% to $11.47.

    • Value-added services revenue grew 25% in constant dollars to $3 billion in Q4.

    • Visa Direct transactions reached 12.6 billion in FY25, up 27% year-over-year.

    • The Board declared a 14% increase to the quarterly dividend.

    Concerns

    3

    • Operating expenses grew 13% in Q4, above expectations due to larger-than-expected FX impact and higher personnel expenses from deferred compensation mark-to-market.

    • Full year 2026 tax rate is expected to be between 18.5% and 19%, up from 2024 and 2025, primarily due to the absence of one-time benefits.

    • Volatility is expected to imply a drag for the first three quarters of FY26, with Q3 having the toughest comparable to 2025.

    Guidance & targets

    12
    CategoryTargetConfidence
    Full year adjusted net revenue growth
    low double digits
    high materiality
    High
    Full year nominal net revenue growth
    generally consistent with fiscal 2025 (~11%)
    high materiality
    High
    Full year adjusted operating expense growth
    low double digits
    high materiality
    High
    Full year nonoperating expense
    $125 million to $175 million
    medium materiality
    High
    Full year tax rate
    between 18.5% and 19%
    medium materiality
    High
    Full year adjusted EPS growth
    low double digits
    high materiality
    High
    Quarterly dividend increase
    14%
    medium materiality
    High
    Q1 adjusted net revenue growth
    high end of low double digits
    high materiality
    High
    Q1 adjusted operating expense growth
    low double digits
    medium materiality
    High
    Q1 nonoperating expense
    about $15 million
    medium materiality
    High
    Q1 tax rate
    around 18%
    medium materiality
    High
    Q1 adjusted EPS growth
    low teens
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Commercial and Money Movement Solutions
    Revenue growth in constant dollars was better than expected, driven primarily by the Commercial Solutions business. Commercial payments volume growth outpaced overall Visa payments volume, helped by new portfolio wins and strong client performance in cross-border. Visa Direct showed strength in both domestic and cross-border transactions.
    Commercial payments volume growth (constant dollars): 10%Visa Direct transactions growth: 23%
    		—14%——
    Value-Added Services
    Revenue growth in constant dollars was better than expected, primarily due to issuing solutions, including network products and card benefits. This segment continues to be a strong growth engine for the company.
    		$3 billion25%——

    Operational metrics

    46
    Net revenue
    $10.7 billionup 12% YoY
    Q4 FY25

    Fiscal fourth quarter net revenue performance.

    Net revenue
    $40 billionup 11% YoY
    FY25

    Full year net revenue performance.

    EPS
    $2.98up 10% YoY
    Q4 FY25

    EPS performance for the fiscal fourth quarter.

    EPS
    $11.47up 14% YoY
    FY25

    Full year EPS performance.

    Nonoperating income
    $29 million
    Q4 FY25

    Higher than expected due to investment income for deferred compensation mark-to-market benefit and higher returns on investments.

    Tax rate
    18.8%
    Q4 FY25

    In line with expectations for the quarter.

    Stock buyback
    $4.9 billion
    Q4 FY25

    Amount of stock repurchased in the quarter.

    Dividends distributed
    $1.1 billion
    Q4 FY25

    Amount of dividends paid to shareholders in the quarter.

    Litigation escrow account funding
    $500 million
    Q4 FY25

    Funding to the litigation escrow account, which has the same effect on EPS as a stock buyback.

    Buyback authorization remaining
    $24.9 billion
    Q4 FY25

    Remaining amount in the company's stock buyback authorization at the end of September.

    FX benefit to nominal net revenue
    0.5 point
    FY26

    Expected benefit from FX to nominal net revenue growth for the full fiscal year.

    FX benefit to nominal net revenue
    0.5 point
    Q1 FY26

    Expected benefit from FX to nominal net revenue growth for the first fiscal quarter.

    FX drag to expense growth
    0.5 point
    Q1 FY26

    Expected drag from FX to expense growth for the first fiscal quarter.

    Acquisition impact to expense growth
    1 point
    Q1 FY26

    Expected impact from acquisitions to expense growth for the first fiscal quarter.

    Global payments volume
    $14 trillionup 8% YoY
    FY25

    Total payments volume for the full fiscal year.

    Processed transactions
    258 billionup 10% YoY
    FY25

    Total processed transactions for the full fiscal year.

    Visa Direct transactions
    12.6 billionup 27% YoY
    FY25

    Total Visa Direct transactions for the full fiscal year.

    Visa Direct transactions
    3.4 billionup 23% YoY
    Q4 FY25

    Visa Direct transactions for the fiscal fourth quarter, with strength in both domestic and cross-border.

    Network endpoints
    12 billion
    FY25

    Expansion of Visa's network of networks.

    Visa credentials added
    270 million
    FY25

    Growth in the number of Visa credentials.

    Visa tokens
    16 billionup from 10 billion in May 2024
    Q4 FY25

    Continued increase in the amount of Visa tokens globally, aiming for 100% e-commerce tokenization.

    Scam merchants dismantled
    25,000+
    Since launch

    Result of Visa Scam Disruption program, leveraging AI-enhanced monitoring and external intelligence.

    Fraud attempts prevented by Scam Disruption
    $1 billion
    Since launch

    Value of fraud attempts prevented by the Visa Scam Disruption program.

    Stablecoin-linked card issuing programs
    130+
    Q4 FY25

    Number of stablecoin-linked card issuing programs globally.

    Stablecoin platform monthly volume
    $2.5 billion
    Q4 FY25

    Monthly volume on Visa's stablecoin platform.

    Klarna card sign-ups (U.S.)
    1 million+
    Q4 FY25

    Success of the Klarna card, which leverages Visa Flex Credential.

    Visa Flex clients
    20+
    Q4 FY25

    Number of signed clients for Visa Flex Credential across regions.

    Visa Accept target countries
    25
    Near-term

    Number of countries targeted for Visa Accept launch following its initial launch in Sri Lanka.

    Visa Pay live markets
    4
    Q4 FY25

    Number of markets where Visa Pay is processing live transactions.

    Visa Pay client pipeline
    70+
    Q4 FY25

    Number of clients in the pipeline for Visa Pay expansion across more markets.

    Face-to-face transactions (taps)
    79%up 8 percentage points YoY
    FY25

    Penetration of tap-to-pay for face-to-face transactions globally and in the U.S.

    Transit systems enabled
    100+
    FY25

    Number of new transit systems enabled, contributing to expansion of tap-to-pay.

    Tap to Phone transacting devices
    20 million+more than doubling since last year
    Q4 FY25

    Strong growth across all regions for Tap to Phone adoption.

    Tap to Add Card participating issuers
    600+doubled since Q3
    Q4 FY25

    Strong adoption of Tap to Add Card, simplifying credential addition to digital wallets.

    Tap to Add Card enabled cards
    1.4 billion+
    Q4 FY25

    Number of Visa credit and debit cards for which Tap to Add Card service is live.

    India SMB cards
    10 million+doubled since 2020
    Q4 FY25

    Growth in Visa SMB cards in India.

    Total commercial cards
    340 million
    Q4 FY25

    Total number of commercial cards globally.

    Visa Protect for A2A pilot (Brazil)
    $500 billion
    6-month period

    Pilot results demonstrating the effectiveness of AI in fraud detection for A2A payments.

    Featurespace client deals
    100+
    Since January

    Number of client deals for risk capabilities acquired from Featurespace.

    Advisory services incremental revenue for clients
    $6.5 billion
    FY25

    Estimated incremental revenue realized by clients as a result of Visa's advisory services.

    Advisory services engagements
    4,500
    FY25

    Number of engagements delivered by advisory services, including GenAI and stablecoin engagements.

    API calls
    700 billion+
    FY25

    Total API calls across Visa's platform, demonstrating its role as a payments platform of choice.

    API endpoints
    3,700+
    FY25

    Total API endpoints available through Visa's platform.

    Client incentives impact on payments volume
    20%
    FY26

    Expected proportion of payments volume to be impacted by renewals, implying incentive growth generally similar to FY25.

    Volatility drag
    drag
    FY26

    Expected volatility throughout the year to be generally consistent with Q4 FY25 exit levels, implying a drag for the first three quarters.

    RPO growth
    roughly 30%
    FY25

    Growth in RPO (Remaining Performance Obligations), which includes value in kind as an important lever for client engagement.

    Industry KPIs

    8
    MetricValueDetails
    Capital returns14%%
    Cross border volume—%
    Payments volume gdv$14 trillionUSD
    Client incentives rebates—%
    Cards in force credentials270 millioncredentials
    Net revenue yield take rate—
    Value added services revenue$3 billionUSD
    Switched processed transactions258 billiontransactions

    Product announcements

    15
    ProductTypeDetails
    Next generation of VisaNetlaunch
    Visa Tokenized Asset Platformupdate
    Visa Direct stablecoin prefunding pilotlaunch
    Visa Intelligent Commerceupdate
    Visa Trusted Agent Protocollaunch
    Visa Flex Credential (Klarna card)expansion
    Visa Accept Solutionlaunch
    Visa Pay solutionexpansion
    BBVA Paylaunch
    Tap to Add Cardupdate
    Chase Sapphire Reserve for Businesslaunch
    Truist Business Premium Visa Infinite cardlaunch
    Spend Clarity for Enterpriseexpansion
    Corporate ForEx prepaid card (ICICI Bank)launch
    Visa Protect for A2Alaunch

    Deals & partnerships

    14
    BarclaysRenewal of a nearly 60-year relationship across consumer and commercial issuing and acquiring.

    Renewal covers millions of customers in the U.K. and U.S.

    Southwest AirlinesRenewal of exclusive payment network for co-brand program and expansion into co-brand debit offering.

    Visa continues to be the exclusive payment network for Southwest Airlines co-brand program.

    ScotiabankWon new wealth management credit card issuance with Visa Infinite product.

    Issuance across 7 countries in Latin America.

    China Merchants BankRenewal of long-standing relationship to upgrade magstripe dual-branded cards to contactless EMV chip cards.

    One of Visa's largest clients in Mainland China.

    Trip.comWon global virtual travel card issuing business.

    Issuance will be through Trip.com's fintech, TripLink.

    BMOExpanded partnership, winning new commercial issuance and offering Spend Clarity for Enterprise tool.

    BMO will offer the tool to corporates in the U.S. and Canada.

    ICICI BankDe novo issuing relationship for India's first corporate ForEx prepaid card.

    Targeting SMBs and large corporates for foreign exchange payment needs for business travel.

    KCB (East Africa)Signed to use Visa Direct to account for 8 corridors.

    Serving over 30 million individual and business customers.

    Touch 'n Go eWallet (Malaysia)Will leverage Visa Direct to enable tourists to fund their wallets across 8 corridors.

    Largest wallet in Malaysia with over 24 million users.

    Al Rajhi (Kingdom of Saudi Arabia)Expanded Visa Direct usage to include Visa Direct to account.

    Leading remitter with the largest branch network in KSA.

    Yape and Plin (Peru)Renewed partnership, securing Visa's position as leader for interoperable transactions.

    Interoperability capabilities unlocked through YellowPepper acquisition.

    Gnosis Pay (Europe)First Pismo deal for a stablecoin-linked card.

    Part of expanding Pismo's offerings to clients in over 5 countries across 4 regions.

    Booking.comSigned for Token Management Service (TMS) and account updater.

    Deepening Visa's presence in the online travel platform space across more than 65 markets.

    Banco Diners (Ecuador)Deployed Visa Advanced Authorization to score both Visa and non-Visa transactions.

    First bank in LAC to deploy Visa's network agnostic solution for risk evaluation.

    Risks & headwinds

    4
    Macroeconomic choppiness and consumer spending habitsFY26

    Not quantified, but noted by analyst as a concern for competitors.

    Mitigation: Visa's diversified business model across credit/debit, spend categories, and geographies provides resilience. Management assumes the macroeconomic environment stays generally where it is today, and consumer spending remains resilient.

    Volatility dragQ1, Q2, Q3 FY26

    Implies a drag for the first 3 quarters of FY26.

    Mitigation: Management expects volatility to be generally consistent with Q4 FY25 exit levels, with Q3 FY26 having the toughest comparable to FY25.

    Client incentives impact from renewalsFY26

    Around 20% of payments volume to be impacted by renewals in FY26.

    Mitigation: Expected incentive growth generally similar to FY25, with Q3 FY26 having the toughest comparable to FY25.

    Increased tax rateFY26

    Expected to be between 18.5% and 19% in FY26, up from below 18% in FY24 and FY25.

    Mitigation: Primarily due to the absence of one-time benefits seen in prior years. Long-term tax rate estimate remains 19%-20%.

    What to watch in Q1 FY26

    5

    Agentic commerce volume ramp

    Next quarter and beyond
    CurrentStill early days, primarily discovery and integrated buy capabilities
    TargetIncreased adoption of agent-driven transactions and autonomous purchases across the industry

    Why it matters

    Agentic commerce represents a significant potential expansion of the payments TAM and a new frontier for Visa's product and service offerings.

    Then the next step of what you're starting to see is the integration of the buy capabilities into that shopping journey. We're just starting to see that in the marketplace today. We've been working on that for many, many months with the ecosystem. And then I think the ultimate kind of user experience and the promise of agentic commerce will be truly empowering agents to go out to search for things on our behalf and ultimately make purchases and buy things without human intervention.

    Q&A highlights

    5

    Competitors note choppiness and trading down in consumer spending. Has Visa seen this, and how does it factor into the outlook?

    Visa's business diversification across credit/debit, everyday/special occasion spend, and various categories provides broad exposure. Data shows consistent growth across spend bands, with higher-spending cardholders driving more growth, indicating continued consumer resilience. This resilience is a key assumption for the FY26 outlook.

    “And so that all gives us good reason over that data to say that consumer has remained resilient. That is our -- that is what we saw in FY '25, and that is our assumption going into FY '26.”

    asked by Sanjay Sakhrani · answered by Christopher Suh

    2 min read6 chapters

    Detailed Narrative

    01

    Visa as a Service Stack and Innovation Focus

    Visa concluded FY25 with strong financial performance, driven by its 'Visa as a Service' stack, which enables clients to build on Visa's infrastructure. The stack comprises a foundation layer (global connectivity, network of networks), a services layer (core capabilities like tokens, risk management), a solutions layer (comprehensive portfolio for customers), and an access layer (client entry point via APIs). The company intensified investment in innovation across all layers, with over half of the new VisaNet code base built with generative AI, improving development speed and maintainability.

    02

    Agentic Commerce and AI Leadership

    Visa is taking a leadership role in agentic commerce, setting standards and developing products like Visa Intelligent Commerce, which leverages tokenization and AI-powered personalization. The recently announced Visa Trusted Agent Protocol aims to ensure secure, agent-driven checkout by verifying agents for merchants. Management believes agentic commerce will accelerate e-commerce adoption, potentially expanding the TAM by enabling consumers to buy from a wider range of merchants and increasing the relevance of Visa's value-added services.

    03

    Stablecoin and Digital Asset Strategy

    Visa views stablecoins as a significant opportunity, particularly in emerging markets and cross-border money movement. The company has facilitated over $140 billion in crypto and stablecoin flows since 2020, with stablecoin-linked Visa card spend quadrupling year-over-year in Q4. Visa is expanding its stablecoin platform, enabling banks to mint/burn stablecoins with the Visa Tokenized Asset Platform, and enhancing cross-border movement with a Visa Direct prefunding pilot targeting banks and remitters.

    04

    Global Expansion and New Product Rollouts

    Visa is actively expanding its reach with new products like Visa Accept, which enables small sellers to accept card payments via NFC-capable smartphones, launching in Sri Lanka and targeting 25 countries. Visa Pay is processing live transactions in four markets with a pipeline of over 70 clients for expansion. Tap to Phone devices have more than doubled to over 20 million, and Tap to Add Card has seen strong adoption, doubling participating issuers to over 600 globally, covering 1.4 billion Visa cards.

    05

    Commercial and Money Movement Solutions Momentum

    Commercial payments volume grew 7% in constant dollars to $1.8 trillion for FY25, and 10% in Q4, outpacing overall payments volume growth. This was driven by new portfolio wins and strong client performance, especially in cross-border. Visa Direct transactions increased 27% year-over-year to 12.6 billion for FY25, with strength in both domestic and cross-border payouts, securing new partnerships in East Africa, Malaysia, and Peru.

    06

    Value-Added Services and Risk Management

    Value-added services revenue grew 25% in constant dollars to $3 billion in Q4, driven by issuing solutions, advisory, and pricing. Visa's risk and security solutions, such as Visa Scam Disruption, have proactively dismantled over 25,000 scam merchants, preventing over $1 billion in fraud attempts. The Visa Protect for A2A pilot in Brazil identified over $90 million in potential fraud with an 80%+ detection rate, showcasing the value of AI in fraud monitoring.

    AI-generated summary of the company’s earnings call. Not investment advice.