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By Brian Nelson, CFA
Visa (V) recently reported first quarter fiscal 2026 results with revenue and non-GAAP earnings per share coming in better than expected. Net revenue increased 15%, or 13% on a constant-dollar basis, to $10.9 billion. GAAP net income came in at $5.9 billion, or $3.03 per share, up 17%, while non-GAAP net income came in at $6.1 billion or $3.17 per share, up 15%. Management had the following to say about the results:
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. Our purposeful investments in our Visa as a Service stack continue to position us as a payments hyperscaler to deliver technology and infrastructure that redefine what’s possible in payments.
During the first quarter of fiscal 2026, payments volume increased 8%, while total cross-border volume experienced 12% growth. Processed transactions increased 9%, to 69.4 billion. Cash and investment securities at the end of the quarter were $16.9 billion. Total debt was $21.2 billion. For the three months ended December 31, net cash provided by operating activities was $6.78 billion, up from $5.4 billion in the year-ago period. Free cash flow was $6.4 billion in the quarter, 59% of revenue. We continue to like Visa as a holding 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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