Visa Inc.

Q1 2026 Earnings Call — January 29, 2026

Dan Perlin (RBC Capital Markets): I wanted to dig in a little bit on the opportunities around value-added services, but specifically around purpose-built offerings for events. So, here we're really talking about the Olympics and World Cup, given that value-added services is a much bigger part of the business today than the last time that occurred.

Executive: If I hit the corner question, Dan, so first of all, let me start with these sponsorship assets that we have. They're obviously marquee sponsorship partnerships, talking about, for example, this year, FIFA, this year, Winter Olympics, you know, global, very, very global in nature. And what we have through our sponsorships is the ability to pass through those rights to our clients and partners all over the world. And that's what we do. Our value-added services sales teams go to market. They sit with our clients many, many months in advance of these programs, and they design programs that are bespoke and custom-built for our clients to help them grow their businesses. So for some clients, those might be advertising campaigns that we develop together with them in support of maybe sweepstakes for their cardholders, things like that. For other clients, they might want to create client events for their private banking clients at one of the FIFA games in the US, Canada, or Mexico. So, in that example, our team works with them to build bespoke events, obviously branded for the bank or financial institution and those types of things. So, it's a very busy time of year for us.

There's a very busy year for us. There is a ton of demand from our clients. And, you know, the great thing about this is not only are we helping our clients, not only are we generating revenue from these services, we're deepening our partnerships with our clients. And so, you know, we get more renewals because of them, we get more business because of them. And so we feel really good about it.

Darren Peller (Wolf Research): Thanks, guys. Maybe we just touch on what you're seeing strengthen that's actually, it seems like it's offsetting the lower than expected FX volatility is such that you're able to maintain your full year guide for revenue growth. I know VAS and CMS seems to be standing out pretty well. And just if I could just throw one more about capital return. Have you guys thought through any changes given where the market is placing valuations now over capital allocation, buybacks, maybe picking up a notch? Thanks, guys.

Executive: Well, yeah, let me jump in. Value-added services in particular we saw in Q1, really great performance, strong execution, strong client demand. Ryan talked about some of that around some of the events, but the strength was really quite broad-based. We saw strong growth year over year in all four of the portfolios that we talked about: issuing solutions, acceptance, risk and security, and advisory. The team continues to execute very well across that. And so, when we think about the performance, and then, of course, CMS had a very high growth quarter as well, performing above what we expected. So, when we think about the full-year expectations, those are the moving parts that we talked about. Obviously, it's hard to determine where that's going to go, but given the persistent low that we saw in Q1, if we extend that throughout the rest of the year, that does provide for more downside than our original expectation, but that is being offset by strong performance that we saw in Q1. And the momentum that we have in the business that we anticipate will continue throughout the rest of the year, and those two become largely offsetting.

To your second point around capital return, as you know, Darren, our approach to capital return and share buyback has largely been programmatic. We've executed on that very consistently throughout our history. But at the same time, you know, we do take advantage when we see opportunities, when we think the market is underpricing our stock, and we see an opportunity, we'll lean in as well, and we'll continue to look for opportunities to do that as well.

Will Nance (Goldman Sachs): Thanks for taking the question today. I wanted to ask just the obligatory question on the regulatory environment. CCCA has been in the news quite a bit. If you could share your updated thoughts on how you're thinking about, I guess, the risks to the business from that potentially going forward, as well as, you know, how you're thinking about recent conversations on the Hill and, you know, the likelihood of that becoming a reality. Thank you for taking the question.

Executive: Hey, Will, you cut a little out when you asked about the specific thing. Was it CCCA you mentioned or something else?

Will Nance (Goldman Sachs): Yeah, it was CCCA, kind of effects of implementation as well as, you know, recent conversations on the Hill and likelihood of passing.

Executive: Yeah, so as you'd expect, we're very engaged on the Hill. We're very engaged with members. As you know well, there's many things floating around. And, you know, we view it as our job to educate elected representatives on the impacts that the various policies that are being floated around could have. In the case of CCCA specifically, we've talked extensively in this call and other places about our view, and it's, you know, it hasn't changed. It's very harmful, and it's just simply not needed. So, you know, when I have a chance to talk to elected officials and the rest of my leadership team does, like they're listening, they're understanding. You know, these people don't live in our industry every day. So, you know, they do need the time to understand it. You know, when we talk to them about why it's not necessary, we explain the competitive environment in this business. It is intense. We have new players entering all the time. You know, we talk on this call about crypto, stable coins, BNPL, obviously all the competition in the credit card and debit card markets, you know, wallet players, A to A.

We take them through and explain, you know, this competitive environment, and we also explain why the market is working so well, and there's no need for government intervention. You know, the second thing we explain to them is just how harmful it would be. I mean, this legislation would have far-reaching negative consequences at a time when, you know, the economy certainly doesn't need that. Consumers and small businesses would see reduced access to credit. You know, rewards would be eliminated entirely. There'd be fewer credit card options. And by the way, weaker security protections, less innovation, all these things. And we explain why. So I think this is just going to be part of what we all do regularly because there's elections. You have new elected officials. They're very busy with lots of other things. And so we just have to continue to remind them of the impacts, whether it's CCCA or anything else for that matter.

Adam Frisch (Evercore ISI): Thanks, guys. Nice results. Could you double-click into the much better than expected growth in commercial and what you saw there? It was just a great quarter, or did something unlock in a market with immense potential, but I think previously was supposed to be a little bit more slow and steady? And then I would appreciate if you could provide just a quick perspective on spending trends around the world, maybe some color on what you're seeing in the major regions, and to the extent you can, some insights on affluent versus mass. Thanks, guys.

Executive: Yeah, I think what you're seeing in commercial is the results of the strategy we've been talking to you about now for really for a few years. And, you know, I think just credit to our teams, like we've been shipping great product. Our sales teams have been engaging with players all around the world. We've been winning. You know, when we think about the commercial space, we've been talking with you all about three different types of opportunities, and we're having great success across all three of them. You know, we talk about converting more small business and medium business spending. And, you know, what's an example I'd point to there? I'd point to the Chase Sapphire Reserve for Business products. You know, that was a portfolio win that we announced, a great product in the market that's doing exactly that. And the second opportunity we talked about is scaling large and middle market card and virtual payables use cases. And, again, that's an area where we've been shipping some great product and having some great client wins. I'd point to our trip.com global virtual travel card issuing business. I think that's a great example there.

And then the third opportunity, the third leg of this strategy, and we've been talking to you all about, is delivering product innovation and network flexibility to help our partners reach under-penetrated spend. And, you know, I think it was maybe the last call or a call before that I mentioned, you know, our win at BMO up in Canada, where we launched our network-agnostic enhanced spend management capabilities with them, and, you know, that's going to allow them to really capture some of that under-penetrated spend. So I think it's the strategy, it's the results. We've been shipping great product, having great client wins, you know, like the ones that I mentioned.

Chris (Management): Sure. I think Ryan covered CMS and VCS, so let me just hit on some of the questions you had around some of the regional volume numbers. So when we look at our international volume in total, which was 9% this quarter, that was largely in line with what we saw last quarter, which was 10%. And if you think about the difference in that, in Q4, we did see some idiosyncratic things that sort of helped the international volume growth to be 10%. And so, when you normalize for some of those things, we see a lot of stability. As you click into each of these regions, some of these things do show up in some of the regional stories. So, if I, you know, do sort of a tour around the world and give a little bit of high-level commentary, in Europe, payments volume was relatively consistent with Q4. We continue to execute well, and we're seeing the benefit of some of the wins that we've had there. You know, that was down maybe a couple points from Q4, and that's being impacted by some of those idiosyncratic things that I talked about. But still very strong growth, very strong growth. Let me be very clear about that, one of our fastest growing regions.

But it was really related to the timing of promotional campaigns that we saw in Q4. Maybe the last one I'd call out is AP as well. AP is growing low single digits, a little bit slower than Q4, but that was one that we also called out before in terms of timing of tax payments that we saw in Asia. And so when we normalize for some of these timing differences, we're seeing relative stability across international payments volume.

Sanjay Sakrani (KBW): Thank you. I know you talked about VAS a decent amount already, but just curious if that 28% growth this quarter can sort of sustain itself for the remainder of the year, or do you think there's some specific factors in the quarter that drove the strength and that may not reoccur? And then just, Chris, you mentioned that there were some expenses that were higher as a result of the stronger VAS revenue growth. I'm just curious, is that a variable component, or can that be leverageable in the future? Thanks.

Executive: Yeah. You know, just building on what I said earlier about the strong start to the year and that. Obviously, we don't guide to growth pillars, but, you know, a lot of the things that we've talked about, you know, Q1 being 28%, that is above where we expected it to go in, but it's also, you know, in line with the momentum that we've seen. We've seen growth in the 25, 24, mid-20s for some period of time. It's really a reflection of, you know, similar to what Ryan was saying about CMS. It's a reflection of the fact that we're executing against our strategy. We're investing behind it. You know, we have a clear strategy and a clear addressable market that we're going after. The teams are certainly doing a really, really great job about that. You know, some of the things also, just to tie into some of the other conversation we've been having,

the first question is around events. And this year is a unique year that we do have two events, both FIFA World Cup and the Olympics. We've talked about how that's going to benefit marketing services in particular, which lands in sort of the other revenue line. That is a business where, you know, clients are super excited to engage with us and activate and have access to these sponsorships, and we're excited about that. But that does also contribute to some of the revenue, some of the expense reasoning that we talked about. And so, let me talk about that real quick. So, with both those two big events, you know, from an expense standpoint, we see a little bit more quarterly variability this year than a normal, let's say a typical year. When we went into the year, we said the expense associated with these two events will be in primarily peaking in Q2 and Q3. And so therefore, as we look at sort of Q1 and Q2, we do think half one expense is a little bit higher than half two as a result of that. But it really is associated with incremental revenue that we're capturing related to these two events. And so, you know, we're happy to do that. And obviously, clients are thrilled as well.

Andrew Jeffrey (William Blair): Thank you. Good afternoon. Appreciate you taking the question. I wanted to ask a question on the flex credential, which is really intriguing and recognizing it's very small as a percent of your total credentials today. Could you maybe sort of frame out a growth trajectory for us? Is there a point in time where you think about flex really bending the growth curve for Visa, and just, I'm just trying to dimensionalize what it can mean over the next, say, three, five, seven years for your revenue growth.

Executive: You know, it's still early in the development of Flex. I talked about, you know, some of the wins we had this quarter and others. I also talked, I think, in my prepared remarks about some of the expansion opportunities we have in the pipeline. Clients are very excited about it. You know, we think about the flex credential like the Swiss Army knife of payments. You know, like, it's got multiple funding options that are all packed into one card. And that resonates with different players across the ecosystem. You know, you look at a SMCC in Japan, who, you know, they're more of a traditional bank, and they launched this product to bundle, you know, credit, debit, rewards, et cetera, all into, you know, one product. I've mentioned on this call in the past BNPL players like Affirm and Klarna, and now as you heard in my prepared remarks, Block, who are able to take BNPL offerings that they used to have to go build out merchant by merchant by merchant around the world, which is obviously very difficult, time-consuming, and costly.

Now they can offer their users a Visa Flex credential, and they can go use the BNPL offering anywhere where Visa is accepted, which is, you know, all over the world. And, you know, it kind of goes on and on. So in terms of, like, the growth impact it's going to have, we're still early in the sales cycle. Like you said, these numbers at this point, you know, are small in the context of our 5 billion credentials. But, you know, when you look at other things that we've done, like tokenization, when you look at Visa Direct, you look at some of the other innovations that we brought to market, you know, we follow a similar strategy and path. Build great product, get it out there in the ecosystem, and then go at it year after year after year to ultimately help serve our clients and grow the business.

Tianjin Wang (J.P. Morgan): Thanks so much. Hi, Brian, Kristen, Jennifer. I want to ask on the issuer processing side, if that's okay. I heard that some good wins in DPS, like Block, and you talked about the Pismo expansion. So it's got me to thinking, how much have you invested in both of these assets from a tech perspective, especially? It feels like there's some momentum on the processing side. And maybe can you discuss if the TAM has changed around issuer processing? I'd love to hear just an update on that.

Executive: No change in the TAM. It's enormous. I mean, you think about the opportunity, every bank on the planet, except a few, needs to go through the process of modernizing their tech stack, whether that be, you know, debit issue of processing, which is where DPS is focused in the U.S. in a more narrow place, but more broadly, their whole entire issue of processing stacks and their core banking stacks. Yeah, we've been, we've definitely been investing product and engineering resources into both. I think we've been shipping some great products in both, which is, you know, what's driving the wins both with, you know, more traditional financial institutions and with FinTechs like you referenced. And Pismo especially, you know, our thesis when we bought Pismo was that our clients were facing big decisions on how they could modernize their tech stacks and ultimately move into the cloud. And that's, you know, that's what's proving out is we're having great sales interactions with financial institutions all around the world.

And when we're able to take them through the PISMO capabilities and show them that it's cloud native, you know, provides issuer processing, core banking, it does it for all products, you know, debit, credit, commercial, you know, current accounts, DDAs, et cetera, we're getting a lot of uptake. Now, you know, these are long sales cycles. You know, a bank kind of changing out its, you know, its core banking infrastructure, moving from on-prem into the cloud, like these are big decisions. They take time, and we knew that going into buying Pismo, and, you know, we'll continue at the sales cycle, continue to ship great product on it, and we're very excited about the space.

Ramsey Ellisall (Cantor Fitzgerald): Hi. Thank you for taking my question this evening. I wanted to ask about your commentary on stablecoins, the $4.6 billion of settlement. It's a small number, but it's ramping seemingly quite quickly. Do you expect more growth in stablecoin flows to be related to settling, you know, consumer retail payments? Or do you see the bigger opportunity for Visa on sort of the disbursements money movement side of things? And just one quick point of clarification for Chris. You said there was some pressure on cross-border revenues from low effects of all hedging and mix. What did you mean by mix? Thanks.

Executive: Yeah, so let me just try to frame this. I think the short answer is the latter, but let me unpack that. You know, in terms of stablecoins, the areas where we see product markets fit are generally the areas around the world with significant TAMs and areas where we're actually under-penetrated today. You know, what is that? So, one is, you know, it's countries around the world where there's high currency volatility or hard-to-access U.S. dollars, and we've had great success issuing Visa credentials. I think I said in my prepared remarks, I talked about this, now in more than 50 markets around the world to provide on and off ramps for stablecoins. And, you know, that's an area where there's great product fit, product market fit. The second area where we see good product market fit is around cross-border, whether that's remittances at the consumer level or whether that's B2B payments or even B2C payments for disbursements. Another area of opportunity, another area where we're generally underpenetrated, another gigantic TAM. And then coming back to the beginning of your question, we're seeing a lot of interest.

As you noted, the numbers are still small in the big scheme of things, but the growth rates are very high of settlement on our network with stablecoins. When we have partners that settle on our network with stablecoins, they're able to get access to seven-day-a-week settlement, for example, because, you know, with stablecoins, we can settle on Saturdays and we can settle on Sundays, even when correspondent banking is not generally available. And that creates more liquidity for partners and clients. They're able to get access to settlement flows faster. In the case of some instances where they might otherwise have to hold collateral during a weekend, they don't have to do that. So, yeah, I mean, we're very excited about the opportunities. I guess just to be very clear about it to the beginning of your question, we don't see a lot of product market fit in developed digital payment markets like the United States or like, you know, the U.K. or Europe for stablecoin payments. As I said before, in the US, if a consumer wants to pay for something using a digital dollar, they have ample ways to do that today. They can pay from their checking account or their savings account.

It's become quite easy to do. So we don't see a lot of product market fit for stablecoin payments and consumer payments in digitally developed markets.

Executive: Hey, Ramsey, I'm going to tackle the second part. I'm glad you asked the question about the commentary, the prepared commentary on international transaction revenue. And that's the first place I'd start. I'd differentiate, because of the way you asked the question, you said pressure on cross-border yields. International transaction revenue does not equal one-to-one cross-border revenue. Cross-border revenue lands in all of our service lines. It contributes to the 15% growth we saw across the business. It contributes to the 17% growth in data processing. And it also obviously contributes to the international transaction line. And I will say, when we look at the cross-border business in total, obviously, the volumes have remained strong and stable. This business remains high-yielding and very profitable. And so, it remains a very healthy business. Now, to your specific question around, you know, the commentary around the difference between international transaction revenues, I called out three things. I won't go through them all. But the first one and the biggest one was volatility. And we talked about, you know, sort of a low currency volatility.

And the second one was mix, which is the one that you've brought up. So we've talked about mix in prior quarters. And really this is talking about the composition of yields across our businesses. Different clients, different products, different regions have different yields. And as growth rates across these different items vary, then it, you know, it can have a mixed impact. This quarter, the one I note is Visa Direct, which continues to grow fast and also very profitable, but typically has a lower yield than carded transactions. So to the extent Visa direct cross-border transactions are growing faster than carded, then that's going to mix the yield down. And so that's an example of mix.

Dan DeLiv (Mizuho): Oh, hey, guys, great quarter. Thanks for letting me ask a question. I just have a follow-up on the Pismo update. Sounds like it's off to a really good start, and you're making a lot of progress. Can you, you know, Ryan, can you maybe update us on how Pismo is trending, you know, in terms of wins with large versus small banks? And how much bigger do you think Pismo could be in two to three years? Because it sounds like it's a great business here, and you're making a lot of, getting a lot of traction. Thank you.

Executive: Yeah, thanks, Jan. Yeah, as I mentioned, we remain very excited about it. You know, the large versus small bank question, it's really both. You know, the smaller players tend to be the fintechs. You know, the other part of our thesis when we bought Pismo beyond what I said earlier was fintechs are limited in their capabilities that they have to drive international expansion in many markets around the world. Often a fintech will, you know, grow up in one country and then want to expand. And what they quickly run into is a challenge. They can't find a technology partner that can help them scale to the next 5, 10, 15 countries. So on the smaller fintech side of things, that's where Pismo has been a great fit, right? Because it's cloud native, we're able to move with fintechs and help them expand broadly around the world. By the way, that helps the FinTech. That's great news for Pismo because it drives revenue, but it's really good news for Visa because we're able to help more FinTech scale more broadly into markets that are underserved with Visa credentials. So it's a real win-win-win in that sense.

On the more traditional financial institutions and the bigger banks, as you referred to them as, it's more about kind of engaging with clients on this journey that they're embarking on, moving from on-prem legacy technology stacks to the cloud. And that's for, you know, that's for issue processing. That's for core banking. And, you know, what we're finding is that when these big, sophisticated companies large clients really dig through the PISMO capabilities, they're extraordinarily impressed, and they find what we found, which is when we found PISMO, that it really is the best cloud-native issuer processing and core banking stack on the planet.

Harshwita Rawat (Bernstein): Good afternoon. I want to ask about tokens. As you said, they've grown to over $17 billion, three times the number of cards you have. We know the authorization rates and fraud deduction benefits, which are meaningful. It's also new to the agenda capabilities. My question is, how does this proliferation of tokens and the benefits it brings changes the conversation you have with your issuer customers and merchants and merchant acquirers? Does it further change the nature of those conversations from network fees to the value of ringing, and I know there could also be more opportunity for pricing for value here. Thank you.

Executive: You know, as I mentioned, my prepared remarks were the progress that we've made with token and excited about the opportunities that we have to ultimately meet our goal of 100% tokenized transactions. I want to, before I answer your question directly, I want to go back to something I alluded to earlier. You know, to get to the point where we are right now with 17 and a half billion tokens and 50% plus of transactions. It has been a multi-year journey. You know, our teams in countries around the world have had to go, you know, client by client, both the issuers and the acquirers and merchants, as you asked about, get them to embed the tokenization into their tech stacks, help them understand the value of it, and do that work for many, many years, which has led us to where we are. The nature of the dialogue both with issuers and especially with merchants and acquirers has been great. You know, if you're a retailer, big or small, like your number one goal is more sales. And when we're able to show the sales uplift that tokenization provides, it's a real aha moment.

You know, the other thing that is very much on the minds that you alluded to of merchants and acquirers all around the world is fraud reduction. And when we're able to show them the impact that tokenization can have on their fraud rates, they're very impressed. So what we're doing right now is we're just continuing that journey. We're engaging with merchants and acquirers and issuers on case studies and showing them the impact, like I described in my prepared remarks. We're really focused on merchants who have large stored credentials, cards to file, and we're showing them the benefits of converting those cards on file to Visa tokens. We're focused on guest checkout. You know, I mentioned in my prepared remarks the enormous progress we've made reducing guest checkout, but it's still 16% of Visa e-commerce around the world. That means 16% of the transactions, our customers aren't as delighted as they could be if those were as simple as a tap or a biometric authentication using a Visa token. So we're working with those merchants to try to put in place the Visa token solutions to improve those user experiences.

And we're also focused on new markets, you know, bringing tokens to new markets, both with issuers and acquirers in places like Europe and Samia and Latin America. So we're excited about the progress, but we still have a lot of work ahead of us, and we're very focused on it.

Executive: And with that, we'd like to thank you for joining us today. If you have additional questions, please feel free to call or email our investor relations team. Thanks again, and have a great day. Thank you all for participating in Visa's fiscal first quarter 2026 earnings conference call. That concludes today's conference. You may disconnect

at this time, and please enjoy the rest of your day.

Q4 2025 Earnings Call — October 28, 2025

Sanjay Sakrani (KBW): Thank you. Like the outlook, it's very strong. I guess when I think through some of the assumptions that are embedded in it, I know, Chris, you talked about assuming the macro stable, but we've heard some of your competitors talk about, you know, choppiness in the economy, different spending habits, especially for consumers as they've been trading down on discretionary items. I mean, have you guys seen anything like that? And sort of how does that factor into your outlook? Thank you.

Management: Hi, Sanjay. Yeah, we have great momentum exiting FY25, and that's the underlying assumption as we go into 26 for another strong year. But let me address some of the specific points you made about questions you had around sort of, I guess, spend and the strength of the macro economy. I mean, if I just zoom out a little bit, really one of the real strengths of our business here, Visa, is the diversification of our business. And so we have the broadest exposure to credit, to debit. Our volumes are comprised of everyday spend, to special occasions spend, non-discretionary like fuel and groceries, and discretionary items like travel or holidays, goods, services, consumer commercial. And so really some of the broadest spend categories that you can imagine. And what we do is remain data-driven. And across this broad and diverse set, the growth across our spend bands has remained quite consistent all year, and it was again in 2004, with higher spending cardholders driving more of the growth. And that's consistent with what we see across the U.S. economy. And so that all gives us good reason when we reason over that data to say the consumer has remained resilient. That is what we saw in FY25, and that is our assumption going into FY26. Next question, please.

James Fawcett (Morgan Stanley): Great. Thank you very much. Really appreciate all the work that you guys are doing on new initiatives, et cetera. One that's quite topical, obviously, is all things agentic commerce. And I know you've had some recent announcements on that topic. Can you paint a picture for us, like the role that you expect Visa to play in agentic commerce transactions and ramp and kind of milestones we should expect to see in its development. Thanks.

Management: Thanks. We see considerable opportunity in agentic commerce. But just to put it in context, you know, when we had the first wave of digital commerce with e-commerce, we set the standards, we led the product development, and Visa was a significant beneficiary. Then you saw a second wave of commerce, which was mobile commerce. And again, Visa was the leader in terms of standards, in terms of product innovation, in terms of the capabilities enabling that to happen. And we've been a big beneficiary. You've seen that both in people buying things on their phones, but also using their phones to buy things, especially with tap to pay. And now in this third wave of agentic commerce, we've been leading in terms of our role of setting the standards.

I think one great example of that is Visa Intelligent Commerce, where we put out a set of capabilities for AI ready cards leveraging tokenization AI powered personalization leveraging our data token service we put out a set of standards with payment instructions that are going to allow customers like you and I to easily set spending limits and conditions to provide clear guidance for agent transactions and also our payment signals which are going to share those data payloads in real time with Visa, enabling us to help set transaction controls, manage disputes and chargebacks and those types of things. So I think that's a great example of the leadership role that we're taking in agentic commerce. And then just two weeks ago, we announced the Visa Trusted Agent Protocol. The Visa Trusted Agent Protocol is meant to really ensure that merchants know when an agent is coming to buy something on my behalf, it is actually a real agent that I have authorized to make purchases on my behalf. And I think what differentiates the Visa Trusted Agent protocol is two things. One is it's open.

It's an open set of standards, and we think that an open framework is critical to drive mass adoption in the way that's needed for agent-to-commerce. And the second is it's easy to integrate. You know, we've built it on existing web infrastructure so that it's going to be easy for merchants to integrate into existing messaging standards and get up and running quickly. So those would be two examples. We're very excited about it. We think it's a significant opportunity for Visa and for everyone involved in the ecosystem. Next question, please.

Jason Kupferberg (Wells Fargo): Hey, thanks, guys. I actually wanted to ask a follow-up on Agentech's topic of the day. I'm just curious to get your perspective on when do you think we start seeing material volumes across the industry from Agentech Commerce? Obviously, there's still some important security considerations to be addressed, and would also love your perspective on to what extent you see Agentech as more of a substitute for traditional e-commerce versus being additive to the TAM of the overall payments industry. Thanks.

Management: Hi, Jason. Let me address the second part of your question first and then the first part. On the second part of your question, I think the base case is it continues to accelerate the adoption of e-commerce and mobile commerce as we all know it. I think there's an upside case on that where you could actually see users buying from a much larger and more diverse set of merchants than they do today in traditional e-commerce, given the power of these agents and their ability to go out and search the world's inventory based on whatever it is that you prefer for your agent. That might be value, that might be price, that might be inventory, that might be speed of delivery, and so on and so forth. I think that could ultimately result in consumers buying more things from more merchants, which ultimately means more transactions on Visa. I also think there's a significant upside in the delivery and the relevance of our portfolio of value added services for the entire ecosystem. Especially as you said, they have to work through a number of things that involve potential fraud and disputes and chargebacks and things like that.

But back to the first part of your question, listen, it's still early days. Um, and I think what you're likely to see in the evolution of agentic commerce is not different or dissimilar to what we saw in e-commerce. I think early on, you're seeing consumers use these agents and these platforms for discovery. They're shopping. They're looking for what might be available for any given gift I'm trying to buy or any clothing item that I might try to buy. But then I might jump to the actual merchant site to make the purchase. Then the next step of what you're starting to see is the integration of the buy capabilities into that shopping journey. That we're just starting to see that in the marketplace today. We've been working on that for many, many months with the ecosystem. And then I think the ultimate kind of user experience and the promise of agentic commerce will be truly empowering agents to go out to search for things on our behalf and ultimately make purchases and buy things without human intervention. That we haven't really seen in the marketplace today, but we're working very hard with the platform players to ensure that the capabilities are in place to enable that.

Thanks, Jason. Next question, please.

David Koning (Baird): Yeah. Hey, guys. Great job. The data processing yield was up a lot, and I know that was explained somewhat, but I'm wondering if some of that due to VAS, the biggest part of VAS outside of others, probably in data processing, and I guess the question is, Is there a sustainability to big yield growth in DP given VAS just keeps building? I guess that's the question.

Management: Hi, David. I'll take this one. So, yes, as you pointed out, data processing revenue, 17% versus the 10% underlying transaction growth. The factors I called out in my prepared comments was around pricing and mix. And those were the two biggest variables. As you know, we implemented new pricing in FY25 in the second half of the year. That's really benefiting in Q3 and Q4, and that'll benefit into Q1, as I talked about as well. In terms of mix, now, what does mix mean? Mix does, across our business, different products and services, different clients in different regions can have different varying yields. And obviously, you know, through the course of any quarter, we see different growth performance across any of those particular elements that'll drive different yield outcomes. So in this particular quarter with data processing, we did see faster growth in higher yielding cross-border regions, and that's what contributed to the acceleration that you saw in between transactions and revenue in data processing. Next question, please.

Darren Peller (Wolf Research): Hey, thanks guys. You know, I just want to follow up one more time on AI and then a bigger question on the new VisaNet rollout. So first, just to be clear on AI, I mean, do you see your suite of services as a big part of what's being offered by, you know, other payments ecosystem partners? And how much are you going to participate in some of those VAS in terms of fraud versus others? And then just I know we talked, Ryan, you talked about VisaNet rollout, the new rollout, and just help us understand what that can mean for product development or velocity and how it positions the network for things like agentic commerce or stable clients going forward. Thanks, guys.

Management: Hey, Darren. Short answer, long answer. Short answer is yes and yes, but let me dive into both of those. On, you know, on kind of agentic commerce, you know, I think you've seen from us, um, really over the course of the year is Visa doing what we do, which is when there's new technology, new platforms emerging, take a leadership role in establishing kind of the way that payments can work most efficiently and most effectively for buyers and sellers. And we're doing that in the agentic commerce space today. And, you know, I think to the first part of your first question, yes, you should assume that we're doing the work to build the infrastructure, the operating regulations and rules, the processes to enable a lot of the things that you're seeing kind of in the marketplace today. You know, as I said on the earlier question, I think it was Jason's, it's still very early days. You're going to see a lot of announcements. You're going to see a lot of things coming out.

What ultimately is going to help kind of agentic commerce achieve its promise is collaboration, collaboration among all of these various ecosystem partners that make e-commerce and mobile commerce and all of these things work today. And you should expect us to take the leadership role that we're taking. On the next generation of VisaNet, so this has been something we've been focused on as we continue to invest in our stack. We've deployed the next generation of VisaNet, which is our core processing platform at the base of our stack. And the answer to your second question is yes, as well. It allows us to ship product more quickly. It allows us to adapt to ecosystem changes more quickly. It allows us to adapt to regional and country-specific requirements more quickly. Here, too, it's early days. We've just begun the deployment of it, but, you know, it's a very exciting milestone for us, and ultimately, we think it'll be great for the ecosystem and our partners. Next question, please.

Raina Kumar (Oppenheimer): Hi. Good evening. Thanks for taking my question. I noticed in Latin America there was a slight deceleration in volume versus last quarter. Anything you can call out there? Thank you.

Management: Sure. Yeah, in Latin America we did see a bit of a slowdown. It still grew strong, but it was slower than we saw in Q3. And the biggest single contributor I would point to is the moderating inflation that we've seen in Argentina. But overall across Latin America it remains a high growth region and we're very pleased with the performance. Next question please.

Ken Chahosky (Anonymous Research): Hey, good afternoon. Thanks for taking the question. Um, maybe just one more on agenda commerce. I was wondering if you could talk about some of the differences and similarities between Visa's trusted agent protocol and Stripe's agentic commerce protocol. I mean, anything you could talk about in terms of what layer of the value chain you're tackling and how your offering is differentiated versus theirs. And then maybe just talk about the broader tokenization opportunity and your leadership there with over 16 billion tokens and just how the agentic commerce ecosystem will leverage that. Thank you.

Management: Yeah, thanks, Ken. On the second part of your question, tokenization, I think, is the critical building block that ultimately will help agentic commerce reach its promise. And if you go back, I know you asked about the trusted agent protocol, but if you go back to the Visa Intelligent Commerce set of products and standards that we put out, tokenization as a platform is what enables the bulk of that functionality and ultimately is what's going to enable us all to have safe, secure, trusted transactions with agents on our behalf. So tokenization, critical building block of that. And as you noted, with kind of 16 billion Visa tokens embedded across the ecosystem, the technology, the standards are well known, well adopted globally in countries all around the world, both on the seller side of the ecosystem and the issuer side of the ecosystem, which is ultimately why it'll help scale our standards. You know, as it relates to the trusted agent protocol, and I'll go back a moment to what I said to a couple of questions ago. Ultimately, what's going to make this all work is collaboration.

And so I think you're seeing a lot of different players across the ecosystem, whether it's Visa or other networks or acquirers or PSPs or platforms, you know, start to put out their capabilities and standards. And again, here too, I think it's where the Visa trusted agent protocol can form a base layer for everyone to build on and everyone to ultimately leverage. And the reason we're excited about the trusted agent protocol scaling is the two things I mentioned. One is it's an open standard. And two, it is designed to be inherently lightweight and easy for merchants especially to integrate to. Next question.

Brian Keane (Citi): Hi, good afternoon. Thanks for taking the questions. Just to kind of a two quick parter, just thinking about holiday sales growth rate this year versus last, there's some expectation that maybe holiday sales will be a little bit weaker in terms of growth rate. Just how is Visa thinking about that? And then secondly, just cross-border growth versus e-comm versus travel, any differentiation, kind of what we've seen on trend line as we go through this fiscal year? Thank you.

Management: Okay. I'll take both of those. In terms of the upcoming holiday quarter, I've provided our guidance for Q1. It is for a strong Q1 carrying the momentum that we saw coming out of Q4 with strong and stable underlying drivers, as well as benefiting from the pricing from a year ago. And so when you add that all up, it makes for a resilient consumer, a stable macro environment, and the resiliency that I talked about across spend bands as well. And so we are anticipating a strong quarter going into the holiday, our fiscal Q1, the holiday quarter that we see. In terms of cross-border, your second question was really around sort of the mix. At the total level, we shared our numbers. It's been stable. It's been a good, strong number, 11% growth in Q3, 11% growth again in Q4. As we click down into the categories of e-commerce and travel, e-commerce has been strong, continued to be strong. And steady, 13% in Q3 and 13% in Q4. Travel did improve a point from Q3 as we talked about previously as well. So the thing that I would call out, though, is that when you add that all up, total cross-border growth continues to be above the trend that we saw pre-COVID.

And part of the reason for that is that the e-commerce part of the mix of the volume is bigger. It was about a third of the business pre-COVID. It's about 40% now and continue to grow at a faster clip than travel. And so should that trend continue, we'll continue to see a bigger weight toward the e-commerce side of the business. But all in all, again, if you zoom out, strong and stable cross-border trends, and we'll continue to see how they perform through the rest of the year. Next question, please.

Harsita Rawat (Bernstein): Hi, good afternoon. I want to ask about stablecoins. As the dust is settling a bit post the passage of the Genius Act, it increasingly appears that what was initially thought of as a risk to Visa could in fact be an opportunity in cross-border money movement, merchant acceptance of certain markets and services. Ryan, you talked about the momentum in stablecoin-linked cards. This quarter, Visa Direct kind of announced a new stablecoin pre-funding option. The number of things you're doing here, I guess the question is, what are the most tangible areas of opportunity as it relates to stablecoins in the coming years, maybe in cards, BAS, NUPLOs, et cetera? Thank you.

Management: Arshia, we've seen it as an opportunity for a while now. And the short answer to

your question is we see opportunities in issuance, in modernizing our settlement network. I think I talked about some of the opportunities we've captured with our PISMO platform. As you said, we're leveraging stablecoins in cross-border money movement. We announced the Visa Direct pre-funding work. We're minting and burning on behalf of our clients with the Visa tokenized asset platform. We've been working with our clients in our consulting business with stablecoins. I mean, the list goes on and on. But just stepping back, as I've said, the areas where there's product market fit for stablecoins in the world are the areas where there's significant TAMs and largely where we're under-penetrated. And that's emerging markets and that's cross-border money movement. And we have a deep product pipeline focused on putting products to market against both of those areas of opportunity. And by the way, cross-border money movement broadly, whether that's remittances or B2B or gig economy payouts or the like, so we definitely see it as an opportunity. We have targeted a significant portion of our product roadmap to capture that opportunity and hope to talk to you more about some products we bring into market in the future. We're going to take a few more questions, so we are going to go a little over. Next question, please.

Andrew Schmidt (KeyBank Capital Markets): Hi, Ryan. Hey, Chris. Thanks for taking the question and appreciate the VisaStack discussion. That was a good one. Maybe I could ask about the Asia PAC improvement. Chris, I know you mentioned timing and China improvement, but if we could peel back the layers there and maybe talk a little bit more about what's going on and whether that improvement is sustainable, that would be great. Thanks so much.

Management: Thanks, Andrew. As I talked about in my prepared comments, we were pleased to see the improved results, two and a half points, and the things that I noted, improvement in mainland China and some smaller but idiosyncratic sorts of things around timing, those will normalize its way out. All in all, we're pleased with the momentum in China and across AP in general and think that that is going to continue to be an important growth opportunity for us. And so when we zoom out from all of that, I think AP is on a directionally good track. Next question, please.

Kim Chiodo (UBS): Great. Thank you. I want to talk a little bit about the evolution of the growth algorithm. Just looking at it numerically, it looks like the biggest change really is a few years ago, not too long ago, value-added services was about 20% of revenue growing in the high teens, and now it's approaching 30% of revenue and growing in the mid-20s. So the growth contribution has stepped up at least 200 basis points, if not closer to 300 basis points. And part of that has been, we've seen the RPO tick up over the years. And even this year, the RPO has been up roughly give or take 30%. And I was hoping you could talk a little bit about that RPO. What's been driving that roughly 30% growth? I appreciate part of that is valuing time incentives, but maybe dig into that and other drivers of the RPO.

Management: Yes. Why don't I take the first part of the question and then Chris, you can take the second part of the question. Tim, I think you summarized it very well. And I think if you go back to investor day and you look at, you know, kind of the growth framework that we laid out and the strategies that we laid out, by the way, both for VAS and for CMS, and you jump forward to today, you know, we're delivering in market those strategies and we're delivering the results that, you know, I think we laid out in that framework that come with those strategies and you summarized it pretty well on the VAS side of things. You know, as you want to talk about the, the, our...

Management: Sure, sure. Tim, I think you know this, obviously, the RPO constitutes many things, but included in that is what you've asked about previously, which is value in kind. This is an important lever for us. It represents a form of incentive that clients can then use to drive value for themselves, and it's good for our client engagement and continues to drive value to Visa, sometimes in value-added services, but in other parts of business. Now, it doesn't drive sort of the majority of value-added services, but it is an important lever, and I think it's an area where we'll continue to see clients really take advantage of.

Chin Chin Wong (J.P. Morgan): All right, let's close it out. I'll ask about investments and OPEX, if that's okay. Just thinking about growth and OPEX being in line with revenue, I'm curious if there's anything to share on that. Is Visa just being opportunistic with spending, or perhaps it's a structural issue as you scale different layers in your service stack and some of those are less mature. Just trying to better understand incremental margins and how that might be changing. Thanks.

Management: Sure. Tintin, as you know, as we've said in the past, explicitly, we don't manage our company to a margin target, at least not in the classical sense, but we do focus on many things. We focus on growing volumes with our clients. We focus on driving revenue across consumer payments, VAS, and CMS, and we also focus on running our business as efficiently and as effectively as we can. And part of that is balancing the investments that we make for short, medium, and long-term return. And when we do this well, as we have, we continue to deliver the financial performance that you've seen, which is strong growth at margins that lead the industry. So I would say, you know, in terms of where we're investing now, as we talk about 2016, I would point you back to actually our investor day back in February. We laid out a pretty extensive view of the, A, the big opportunity that we're going after, the massive addressable opportunity, and two, the clear strategies, the things that we're going to go do to go capture that opportunity.

And so across our industry, as things continue to move as fast as they are, you've heard a lot of the conversation even today around agentic and stablecoin. You know, we think it's important that we continue to invest in these opportunities from our position. And if we do so, we'll continue to deliver on the growth framework that we outlined at Investor Day, which means we'll deliver compelling profit growth and drive strong shareholder returns. And hey, Hitenjin, the only I would add on what Chris said is, I don't ever recall being so excited about the opportunities ahead of this company. And I don't ever recall being so pleased with how well our teams have lined up our product pipeline, our go-to-market sales motions, our client teams, you know, the things that we talked about today, whether it's agentic, stable coins, Visa Pay, Visa Accept, tap to everything, you know, the great momentum in the VAS business, the great momentum in Visa Direct, the great momentum and results we're seeing in Visa Commercial. It's just an extraordinarily exciting time for the company, and I'm just... you know, super proud of the investments that everybody's making across the place.

So appreciate that question. Appreciate everybody's questions. Jennifer, back to you to close.

Management: Yeah. And with that, we'd like to thank you for joining us today. If you have any additional questions, please feel free to call or email our investor relations team. Thanks again and have a great day. Thank you all for participating in Visa's fiscal fourth quarter and full year 2025 earnings conference call. That concludes today's call. You may disconnect

at this time and please enjoy the rest of your day.