Visa Posts Record Annual Revenue as It Shifts Focus to New Customers

what happened

Visa reported results above forecasts and double-digit growth in transactions on Tuesday, closing a record year for revenue and profit. Net revenue for the fiscal fourth quarter ended Sept. 30 reached $12.1 billion, up 13% and above the $12.09 billion Wall Street expected. Adjusted earnings rose 17% to $3.48 per share, against the $3.44 analysts projected, according to FactSet. Full-year net revenue hit $45.9 billion, up 15%, also ahead of estimates. Visa shares fell 1.8% after hours, following a 0.6% drop in regular trading to $401.86.

The company is also widening its business beyond cards, including cryptocurrency and fraud detection. In August it agreed to buy BioCatch for $2.4 billion in cash, and earlier this month it received preliminary approval from China's central bank to prepare a domestic bank card clearing network. The report was published by Barron's, which labeled the story as developing.

why it matters

The key point for investors is that Visa again beat forecasts on revenue and profit, while cross-border volumes rose 14%. The post-results share decline suggests the market either expected more or weighed mixed signals. For the payments sector, the results point to durable demand, and the acquisition and China entry add room for future growth.

market impact

Visa shares and the payments sector: results above forecasts support the stock, though the after-hours decline points to caution

• ↔Visa shares mixed — results above forecasts support the stock, but the after-hours decline shows investor doubts

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