Earnings
Visa beats fourth-quarter estimates and guides to low double-digit revenue growth in fiscal 2027, but shares slip after hours
US payments volume rose 10% and the dividend goes up 16%, yet a narrow revenue beat left the stock about 1.5% lower in late trading.
HedgeWeekly News Desk ·
Visa reported net revenue of $12.1 billion for its fiscal fourth quarter to September 30, up 13% from a year earlier, according to its earnings release filed with the SEC on Tuesday. Adjusted earnings rose 17% to $3.48 a share, ahead of the $3.44 consensus cited by Investing.com, while revenue came in only about $10 million above forecasts. Shares fell about 1.5% to $396 in after-hours trading from a $401.86 close.
Payments volume grew 9% in constant dollars and processed transactions rose 10% to 74.2 billion. Cross-border volume excluding intra-Europe climbed 14%, with travel up 13% and e-commerce up 17%, according to the earnings call. US payments volume rose 10%, with credit up 11% and debit up 9%. For the full fiscal year, net revenue reached $45.9 billion, up 15%, and adjusted earnings per share rose 16% to $13.27.
The company bought back about 11 million shares for $4.0 billion in the quarter and $20.5 billion over the year, leaving $24.4 billion of authorisation. It raised its quarterly dividend 16% to $0.78 a share and reiterated its $2.4 billion cash deal for fraud-detection firm BioCatch, due to close by the end of its fiscal second quarter. For fiscal 2027, management guided to adjusted net revenue growth in the low double digits and EPS growth in the low double digits to low teens.
For investors reading the US consumer, the call offered a data point ahead of Wednesday's Fed decision: the finance chief said Visa had not seen signs of weakening among lower-spending consumers, and the 2027 outlook assumes spending stays resilient. Cross-border growth running above historical levels remains the key swing factor for margins, and the after-hours dip suggests the stock was priced for a bigger beat. Visa also said its stablecoin settlement run rate has passed $25 billion a year, roughly ten times a year earlier, a line to watch as payment networks position for tokenised money.