Visa revenue growth slows as operating expenses climb
The payments processor reported net revenue of $11.6 billion for the third quarter.
Visa (V), the global payments technology company, reported net revenue of $11.6 billion for the third quarter.
The result marked a deceleration in top-line growth, with revenue rising 14% year-over-year. This followed a period of increasing momentum, as growth had reached 17% in the second quarter and 15% in the first quarter of 2026.
While revenue growth slowed, underlying usage metrics showed acceleration. Constant-dollar payments volume grew 10% year-over-year, up from 9% in the second quarter and 8% in the first quarter. Processed transactions also rose 10%, an increase from the 9% growth recorded in the two previous quarters.
Cross-border activity provided a tailwind as volume excluding intra-Europe grew 12% year-over-year, accelerating from a steady 11% growth rate maintained over the prior three quarters.
Revenue streams diverged during the period. Other revenue growth accelerated to 45% year-over-year to reach $1.5 billion, compared to 41% in the second quarter and 33% in the first quarter. Conversely, international transaction revenue growth slowed to 6% year-over-year, down from 10% in the second quarter.
Operating costs outpaced revenue gains. GAAP operating expenses rose 19% year-over-year, while non-GAAP operating expenses increased 17%. The rise in non-GAAP spending was primarily due to higher personnel and marketing expenses.
Visa recorded a $563 million special item for severance costs during the quarter, a charge that was not present in the second quarter results.
The company also managed several capital and legal adjustments. Visa settled an exchange offer for Class B-1 and B-2 common stock on May 12, 2026, which led to the issuance of Class B-3 and Class C common stock. Additionally, the company deposited $250 million into a litigation escrow account on June 25, 2026, to insulate the company and Class A stockholders from financial liability.