Visa Inc.

Welcome to Visa's Fiscal Third Quarter 2026 Conference Call. All participants are in a listen-only mode until the question and answer session. 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 third 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 the 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 10Q and 8K, 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 gap basis and all other results on a non-gap nominal basis unless otherwise noted. The related gap measures and reconciliation are available in today's earnings release and related materials available on our IR website. And with that, let me turn the call over to Ryan.

Thanks, Jennifer. In our fiscal third quarter, net revenue was up 14% year-over-year to $11.6 billion, and EPS was up 11%, both ahead of expectations. Quarterly payments volume grew 10% year-over-year in constant dollars to cross $4 trillion the first time in Visa's history, and process transactions grew 10% year-over-year to $72 billion, reflecting strong and resilient consumer spending. After record-setting net revenue growth in our second quarter, we continued to build on our momentum in the third quarter in three important ways. One, through our wins in consumer payments, commercial payments, and money movement with a focus on serving our clients. Two, with product innovation and development across our business, both what we are building and how we are building it. And three, and continuing to position our value-added services as a key driver of our growth, not just this year, but for years to come. I'll cover all three, starting with our wins across the business. Our Visa as a Service stack is rooted in serving our clients. We remain obsessed with helping our clients and the entire payments ecosystem scale and grow. A tangible sign of the trust our clients have in Visa and our capabilities is our Net Promoter Score. For the third consecutive year, we received a score of 76 in our annual Global Client Engagement Survey, an enviable number in any industry. Most notably, the MBS from both sellers and fintechs each increased several points, with respondents valuing our strong brand, trusted partner relationships, global network strength, reliability, and innovation. We see the strength of these relationships in our consumer and commercial and money movement solutions business with our credentials growing 8% year over year in the third quarter and our tokenized penetration nearing 60% of our e-commerce transactions globally. Let me provide some specific examples. First, in Europe, through portfolio migrations and organic expansion, we have grown credentials by more than 40 million in the last 12 months which is over 70% faster than the annualized credentials growth we saw in the region from fiscal year 2019 to 2024. And in the next several years, we expect over 30 million more credentials from wins alone in Europe. An example from this quarter is NatWest, where we have won the entire consumer credit portfolio of their retail bank, demonstrating the strength of our strategic partnership that has been restored over the past five years. In Latin America, we have continued to bring our innovation and strong relationship management to drive processing penetration and value-added services. We recently renewed our 55-year relationship with Bradesco in Brazil across consumer credit and debit, commercial credit and debit, and several value-added services. In Colombia, we signed an agreement with Grupo Aval, representing four banks in the country to drive domestic processing, enable Visa Direct cross-border transactions, and support commercial card issuance in small business. Our processing penetration in the country, which was in the single digits five years ago, is now above 90%. In the U.S., we won the consumer debit portfolio of large Southeast Community Institution Colony Bank Thank you for joining us. We signed an agreement with Corpay to bring our Fleet 2.0 solution to their Fleet Card platform, supporting new opportunities across the region with capabilities such as EMV chips, digital wallet provisioning, contactless payments, rich transaction data, and global acceptance. In our Samir region, we signed an inaugural B2B travel portfolio in Saudi Arabia with Al-Raji Bank, one of the largest banks in the region, for our Visa Commercial Choice Travel product, providing flexible interchange, automation, controls, and reconciliation for their OTA clients. And in the U.S. and across six countries in Europe and Asia Pacific, we renewed with Neom, a fast-growing B2B travel issuer for virtual cards. In money movement, Visa Direct Transactions grew 21% year-over-year this quarter to $4 billion. Expanding relationships to activate new use cases is one key way we enable growth for Visa Direct. For years, DoorDash, the largest food and grocery delivery platform in North America, has been utilizing Visa Direct for Dasher payouts in the U.S., Australia, and Canada, as well as Visa virtual commercial cards to enable Dashers to pay for customer orders at physical locations. This past quarter, we enabled Visa Direct to card for DoorDash's Crimson platform, a dedicated personal banking and rewards program built specifically for Dashers who receive a Visa debit card when they sign up. With all of these examples, it's clear that our people, products, and technology are resonating and building trust with our clients globally, positioning us for the future. Now I'll turn to product innovation at Visa. Technology and commerce are evolving faster than ever. as the leading hyperscaler of payments globally, Visa is at the center of this transformation, bringing trust to whatever form commerce takes next. This is showing up in our product development in two ways, in both what we are building and how we are building it. Let me start with the how. AI is changing how work gets done at Visa. With the dawn of the generative AI era, We moved quickly to deploy AI across our enterprise to assist us in areas like engineering, client service, and model orchestration. Now, as we enter the era of agentic AI, we are going beyond AI assistance and harnessing the power of AI to execute work and tasks with our supervision. We have progressed materially in product development and engineering, deploying new tools, plugins, agent skills, and persistent sessions to create an end-to-end pipeline with human oversight and autonomous capability. As a result of the unlocks we can realize with this new tooling, we are reforming our product development teams that used to be 10 or more into smaller and more nimble agentic squads of two to four. And the results are meaningful for those teams that are using the agentic tool chain. With 80% more code commits, and 80% plus improvement in requirement definition from 30 days to five days, which has translated to 65% plus faster feature development. Now to the what. As a result of this new way of working, we are able to design, build and ship products at an increased velocity with continuous innovation and improvement. I want to touch on two areas where we are deploying our new way of working with great impact. Stablecoin, and Agentic Commerce. We are active and investing in each layer of the Stablecoin stack, from blockchain to issuance, wallets, infrastructure and orchestration, and applications. This quarter, we have made progress in both the issuance and application layers. We recently joined Open Standard, alongside a strong group of partners. Open Standard plans to issue OpenUSD, a new stablecoin designed for global money movement. We look forward to helping connect OpenUSD to real world payments. And in the application layer, we launched the Visa stablecoin platform for stablecoin minting, movement, and management. It is designed to enable our partners to settle with Visa and stablecoins, provide on-chain wallet as a service infrastructure, and move money between fiat and stablecoins beginning with OpenUSD across a wide variety of use cases. Furthermore, Visa stablecoin platform's infrastructure will be integrated with Pismo, which can enable tokenized deposits for financial institutions and Pismo plans to add third-party tokenized deposit infrastructure providers in the future. There is much more to come in this space. and Visa is participating and will continue to participate in all of these layers, whether through building Visa products and services, integrating with partners, investing or acquiring. If stablecoins are reshaping the back end of commerce, we see AI as transforming the front end. We believe agentic commerce will expand our addressable market and drive future growth for Visa. This quarter, we continue to work across the ecosystem by enabling new seller capabilities such as our agent score and agent directory and building infrastructure such as our token assurance framework to ensure agent-initiated transactions are transparent and trusted. Across payments, partnerships are critical in driving adoption and AI is no different. We are excited to be partnering with OpenAI to enable secure visa payments within agentic commerce. Through the partnership, Thank you for joining us today. All of this progress across stablecoin and agentic demonstrates that we have fundamentally shifted the what and how in our product development lifecycle. We now have more than 150 AI-powered applications, and over the last 12 months, we have shipped more than 300 major product releases. Changes in the way we work and where we invest also impact how we operate the company. Today, we announced that we are eliminating roles with the majority being in our technology and product teams to ensure that we are continuing to position Visa for future growth. Another important area of product development has been in our value-added services, which grew revenue by 34% in constant dollars in Q3, with the vast majority of the revenue linked to transactions, cards, and accounts. In issuing solutions, Our network products continue to be key drivers of growth, creating valuable customer experiences. For example, two of our most popular network products, Subscription Manager and Stop Payment Services, which help cardholders view and decide where their card is on file for a subscription or reoccurring payment, now have 2 billion credentials enrolled. And we continue to develop new products, including our AI financial assistant, enabling banks to white label our AI-powered financial insights from their data and Visa's network data for their cardholders right in the bank's own app and website. We are also expanding our issuer processing capabilities with DPS full-service credit, bringing the best of Visa, DPS, and PISMO into an integrated credit issuer processing solution designed for fintechs and small to mid-sized banks. We will be piloting it in Q4 with our first client secured in the U.S., and it will be generally available next year. In acceptance solutions, I just mentioned our new agentic tools for sellers and enhanced tokens, but this portfolio includes many other capabilities that are driven by both carded and non-carded transactions. Within Cybersource, for example, Some of the largest bank acquirers and sellers globally access the latest solutions such as Unified Checkout that launched globally in March. Unified Checkout acts as a seamless orchestrator across multiple payment types with Visa hosting and securing the experience so sellers don't have to rebuild every time commerce evolves. Over 4,500 sellers and acquirers globally have enabled this with more to come, including one of our largest acquirers in the U.K. In risk and security solutions, we continue to deliver capabilities to the entire ecosystem, leveraging the latest in AI to help clients protect themselves in an increasingly complex threat environment. We built the Visa vulnerability agentic harness, an orchestration layer that allows us to use models like Mythos to find and fix issues at AI speed. It is available now on GitHub to our clients, along with a technical blueprint Remediation and Validation Agents, and we can provide consulting and solutions to help. In advisory and other, this quarter marked significant engagement for the FIFA World Cup. In marketing services, over the last 12 months, we delivered more than 300 FIFA engagements to more than 240 unique clients, with about 20% of our clients utilizing our services for the first time, with far-reaching impact in our regions across 70 markets. In the U.S., you likely saw some of our largest clients such as Chase, Bank of America, Wells Fargo, and Marriott activate our FIFA offerings and promotions for their customers to drive acquisition and loyalty. In Latin America, we also saw great engagement. Two examples I would highlight. In Brazil, A leading bank worked with Visa to launch multiple campaigns, including a promotion entering cardholders for a chance to win tickets for every 100 Reahis spent with more chances for new cardholders. From February to June, this campaign had a million cardholder participants with an 8% lift in card activation and $400 million in incremental payments volume. In Mexico... Thank you for joining us. We are very pleased to have extended our longstanding global partnership agreement as the official payment technology partner for FIFA tournaments. It is unique sponsorship assets like these that make Visa a partner of choice for our value-added services. In our first three quarters of 2026, I have seen the momentum across our business continue to build. Through the net promoter score from our clients, through the rate of client renewals and wins, through the accelerated rollout of innovative products and solutions, through the increasing engagement in our value-added services, and by consistently delivering strong financial results to our investors. The opportunity ahead is significant, and I'm confident that we have significantly shifted our ability to build and grow the future of payments faster and better than ever before.