Visa revenue growth slows as operating expenses climb

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Visa (V), the global payments technology company, reported net revenue of $11.6 billion for the third quarter [1]. 

The result marked a deceleration in top-line growth, with revenue rising 14% year-over-year [1]. This followed a period of increasing momentum, as growth had reached 17% in the second quarter and 15% in the first quarter of 2026 [1][2][3][4].

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 [1][2][3][4]. Processed transactions also rose 10%, an increase from the 9% growth recorded in the two previous quarters [1][2][3][4].

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 [1][2][3][4].

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 [5][6][7]. Conversely, international transaction revenue growth slowed to 6% year-over-year, down from 10% in the second quarter [5][6][7].

Operating costs outpaced revenue gains. GAAP operating expenses rose 19% year-over-year, while non-GAAP operating expenses increased 17% [8][9]. The rise in non-GAAP spending was primarily due to higher personnel and marketing expenses [8].

Visa recorded a $563 million special item for severance costs during the quarter, a charge that was not present in the second quarter results [1][2].

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 [8][10]. 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 [8].

Citations

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