Visa Earnings Impress as the Company Grows Its Net Revenue At Its Highest Rate Since 2022

Visa (NYSE: V) published quarterly results after the market closed today, and the financial-services giant posted performance that came in far better than Wall Street had anticipated. The company reported strong sales and earnings results for the second quarter of its 2026 fiscal year -- which ended Dec. 31.

Visa delivered non-GAAP (adjusted) earnings per share of $3.31 on sales of $11.23 billion in fiscal Q2. Meanwhile, the average analyst estimate had called for an adjusted profit of $3.10 per share -- and revenue exceeded the average analyst target by roughly $480 million. The company served up big revenue and earnings beats in the period, and the business looks to be in strong shape going forward.

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Visa served up a winner with its latest quarterly report

Visa's revenue unexpectedly surged roughly 17% higher year over year, marking its highest growth for net revenue since 2022. Meanwhile, adjusted earnings per share came in roughly 20% higher compared to the performance in the prior-year quarter. The company saw strong growth in overall payments volume, cross-border volume, and processed transactions. Even after accounting for currency fluctuations in the period, sales were up 16% on an annual basis.

Visa saw total payments volume climb 9% year over year in fiscal Q2 -- or 8% on a currency-adjusted basis. Total processed transactions for the quarter came in at $66.1 billion, representing a 9% annual increase. Meanwhile, service revenue for the period came in at $5 billion -- good for growth of 13% year over year. Data processing revenue grew 18% year over year to hit $5.5 billion, and international transaction revenue was up 10% to $3.6 billion.

Visa announces big new buyback move

Along with its fiscal Q2 report, Visa announced that it had received board authorization for another big expansion of its stock-buyback program. The company's board of directors has approved an additional $20 billion stock buybacks. Buying back and retiring shares should create another positive earnings catalyst for the company, and recent profitability gains already look encouraging.

What's next for Visa?

Visa served up great results with its report for fiscal Q2. Along with strong sales growth last quarter, the company's operating expense declined to $4 billion -- down from $4.16 billion in last year's period. The improvement helped power robust earning growth, and Visa may have room for continued reductions of operating expenses that help to bolster earnings.

Visa's recent quarterly report provides a strong indication that the company can continue posting strong results even in periods in which macroeconomic and geopolitical dynamics created uncertainty for the broader financials space. The company's Q2 print also suggests that the business is currently seeing little in the way of disruption from stablecoins and other alternative financial products.

The company's fiscal Q2 report shows that consumer engagement remains strong, and it also suggests that the company has room for continued margin improvements that will help support earnings growth. Visa's latest quarterly report looks like another significant win for the company and bolsters the long-term bull case for the stock.

Along with the company's expanded buyback program, ongoing growth for payments processed through the company's network supports the outlook for healthy earnings growth going forward. Visa's financials continue to look rock solid, and the network-effect benefits enjoyed by the business currently show little sign of weakening.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Visa. The Motley Fool has a disclosure policy.