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The call conveyed strong operational momentum and financial outperformance: robust revenue and EPS growth, accelerating value-added services and commercial/money-movement revenue, notable progress in stablecoin/on-chain initiatives, sizable capital returns and raised guidance. Near-term headwinds were noted — primarily geopolitical impacts in the Middle East/CEMEA, incentives/timing variability, volatility comparables and modest increases in non-operating expense — but management presented these as manageable and offset by diversified growth drivers and strategic investments.
Visa raised its full-year adjusted (non‑GAAP, constant‑dollar, acquisition‑adjusted) outlook, now expecting net revenue growth in the low double‑digits to low teens and adjusted EPS growth in the low teens; full‑year operating expense growth is forecasted in the low double‑digit to low‑teen range, non‑operating expense about $150 million, and a tax rate of 18–18.5% (closer to the low end). Key assumptions include continued consumer spend stability, no material change to pricing (with new pricing effective in H2), no material change to incentives (but a step‑up in incentive growth from Q2 to Q3 as comps lap Q3 2025), higher volatility assumptions for Q3/Q4 (back to original October guidance), and stronger value‑added services driven in part by FIFA. For Q3 (adjusted) they expect net revenue growth in the low double‑digits, operating expense growth in the low teens, non‑operating expense of about $55 million, a tax rate around 18.5% and EPS growth in the mid‑ to high‑single digits, with an implied ~1‑point step‑up in net revenue growth into Q4; acquisitions (Prisma/Newpay) are expected to add ~1 point to full‑year net revenue (~1.5 points to op expense and ~0.5 point to EPS) and ~1.5 points to Q3 net revenue (~2 points to Q3 op expense and ~0.5 point to Q3 EPS).
Net revenue $11.2B, up 17% year-over-year (16% in constant dollars); non-GAAP EPS $3.31, up 20% year-over-year — strongest net revenue growth since 2022 and the strongest ex-post-pandemic and Visa Europe acquisition since 2013.
Payments volume $3.7T, up 9% year-over-year in constant dollars; processed transactions 66B, up 9% year-over-year — broad-based global growth with U.S. volume +8% and total international volume +10% (constant dollars).
VAS now ~30% of net revenue and grew 27% year-over-year in constant dollars to $3.3B (Ryan highlighted VAS growing 25%+); performance driven by AI-enabled products, marketing services, authorization/fraud tools and client engagements.
Commercial and money movement solutions revenue grew 24% in constant dollars; commercial payments volume +11% (constant dollars); Visa Direct endpoints >18B and Visa Direct transactions 3.7B in Q2, up 23% year-over-year.
Over 160 stablecoin card programs; stablecoin-linked payment volume up nearly 200% year-over-year in Q2; stablecoin settlement run-rate ~$7B annually, up >50% since last quarter; added 5 blockchains (total 9) and operating validator/super-validator roles.
Launched Visa Large Transaction Model and Visa CLI proof-of-concept; AI-enabled fraud/risk tools showing up to 5x increase in fraud value capture; company positioning as a payments trust/interoperability layer for agentic commerce.
Record quarterly buybacks of $7.9B in Q2; $1.3B dividends; funded litigation escrow $125M; $13B remaining on prior authorization and Board approved new $20B program (total repurchase capacity approx. $33B).
Pismo expansion into 15 new countries since acquisition; Wells Fargo agreement to migrate to Pismo core ledger; acquisitions of Prisma and Newpay to accelerate issuer/real-time/payments capabilities (acquisitions add ~1 point to revenue growth).
Management increased full-year adjusted net revenue and EPS guidance: net revenue growth revised to low double-digit to low teens (constant dollars, adjusted) and adjusted EPS growth now expected in the low teens.
Welcome to Visa's Fiscal Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the conference over to your host, Ms. Jennifer Como, Senior Vice President and Global Head of Investor Relations. Ms. Como, you may begin.
Thank you. Good afternoon, everyone, and welcome to Visa's Fiscal Second Quarter 2026 Earnings Call. Joining us today are Ryan McInerney, Visa's Chief Executive Officer; and Chris Suh, Visa's Chief Financial Officer. This call is being webcast on the Investor Relations section of our website at investor.visa.com. A replay will be archived on our site for 30 days. A slide deck containing financial and statistical highlights has been posted on our IR website. Let me also remind you that this presentation includes forward-looking statements. These statements are not guarantees of future performance, and our actual results, outcomes, or timing could differ materially as a result of many factors.
Additional information concerning those factors is available in our most recent annual report on Form 10-K, and any subsequent reports on Forms 10-Q and 8-K, which you can find on the SEC's website and the Investor Relations section of our website. Except as required by law, we do not undertake any responsibility to update these forward-looking statements. Our comments today regarding our financial results will reflect revenue on a GAAP basis and all other results on a non-GAAP nominal basis unless otherwise noted. The related GAAP mea...
