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By Brian Nelson, CFA
Visa (V) recently reported second-quarter fiscal 2026 results that came in better than expected on both the top and bottom lines. Net revenue increased 17% (16% on a constant currency basis), driving GAAP net income 32% higher. Non-GAAP net income advanced 17%, as non-GAAP diluted earnings per share increased 20%, to $3.31. Payments volume increased 9% in the quarter, while cross-border volume increased 12%. Processed transactions increased 9%.
Management had the following to say about the results:
Visa’s second quarter net revenue growth of 17% was the highest since 2022, driving GAAP EPS up 36% and non-GAAP EPS up 20%. Consumer spending remained resilient, and our strategy and innovations fueled strong performance in consumer payments, commercial and money movement solutions and value-added services. Throughout the quarter, we continued to enhance our Visa as a Service stack, including with agentic and stablecoin capabilities, to further strengthen our position as the leading hyperscaler of payments globally and drive growth for years to come.
Visa ended the quarter with $13.9 billion in cash and cash equivalents and investment securities, and $24 billion in short- and long-term debt. Net cash provided by operating activities came in at $9.8 billion during the six months ended March 31, while the company spent $761 million in capital on property, equipment and technology over the same time. Free cash flow for the six months ended March 31 was $9 billion. During the quarter, Visa returned $9.2 billion in share repurchases and dividends. The company’s board of directors authorized a new $20.0 billion multi-year share repurchase program. We continue to like Visa as a top weighting in the Best Ideas Newsletter portfolio.
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Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
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