Haverhill Financial Research · Analysis · Fintech · October 23, 2026
The short version
Visa reports fiscal fourth-quarter results after the close on October 27. In its fiscal third quarter, which ended in June, net revenue rose 14% to $11.6 billion. Payments volume grew 10% in constant dollars, processed transactions grew 10% to 71.7 billion, and cross-border volume excluding transactions within Europe grew 12%. Non-GAAP earnings per share were $3.32.
Growth by revenue line, year over year. Source: Visa fiscal Q3 2026 earnings release.
Other revenue is the story
Visa reports four revenue lines before client incentives. Service revenue rose 14% and data processing revenue rose 17%, both a little faster than volume. International transaction revenue rose 6%. The fourth, other revenue, rose 45% to $1.5 billion. That line sits outside the core card fees, and at this pace it is becoming large enough to move the total.
| Line | Revenue | Growth |
|---|---|---|
| Service revenue | $4,922M | +14% |
| Data processing revenue | $6,042M | +17% |
| International transaction revenue | $3,853M | +6% |
| Other revenue | $1,496M | +45% |
| Client incentivesDeducted from gross revenue | −$4,680M | +18% |
| Net revenue | $11,633M | +14% |
Incentives grew faster than revenue
Client incentives, the payments Visa makes to banks and merchants to win and keep their business, rose 18% to $4.7 billion. That is faster than the 14% growth in net revenue. It is a normal cost of the business, but when it outpaces revenue it is a sign that competition for large card portfolios is getting more expensive.
A gap in cross-border
Cross-border volume grew 12%, but international transaction revenue grew only 6%. Visa earns this revenue on cross-border spending and currency conversion, so the gap matters. It may reflect the mix of travel versus online spending, or lower currency volatility, which reduces fees. We would look for Visa's explanation on the call.
What to watch on October 27
Other revenue. Whether growth stays anywhere near 45%.
Incentives versus revenue. Another quarter where incentives grow faster would squeeze the net.
Cross-border. The volume growth rate and whether international transaction revenue catches up.
One-off charges. Last quarter included a $253 million litigation provision and $563 million of severance costs.
Our take
Visa's core business is growing at a healthy, steady rate, and the fastest growth is coming from areas outside traditional card fees. The two things we would watch are costs: incentives growing faster than revenue, and severance costs of $563 million in a single quarter. Visa also bought back $4.9 billion of stock in the quarter and has $28.4 billion of authorization left, so capital returns are not in question.
Sources and disclosures
Figures come from Visa's fiscal third-quarter 2026 earnings release, filed with the SEC on July 28, 2026.
Disclosures. Haverhill Financial Research is a publisher of general financial commentary. This article is not personalized investment advice and does not consider any reader's financial situation; readers should do their own research. Nothing here is a recommendation to buy or sell any security. Company figures and guidance can change. The author of this post does not hold positions in Visa or the other companies named. Data as of October 23, 2026.
