revenue $11.6B, net income $5.63B. Visa litigation accrual falls; revenue

Total litigation accrual decreased from $2,352 million at June 30, 2025 to $1,274 million at June 30, 2026, a 46% decline. This reflects $3.1 billion in payments during the nine months ended June 30, 2026 (versus $1.1 billion in the prior-year period), partially offset by $1.4 billion in new provisions. The decline indicates substantial settlement activity, primarily in the interchange MDL.

U.S. covered litigation accrual fell from $2,255 million at June 30, 2025 to $822 million at June 30, 2026, a 64% decrease. The company recorded $1.1 billion in new provisions for interchange MDL (versus $1.5 billion prior year) but paid out $3.0 billion (versus $827 million prior year). The company also deposited $875 million into escrow during the nine months ended June 30, 2026 (versus $375 million prior year).

Visa entered a new settlement agreement for the Injunctive Relief Class on November 10, 2025, received preliminary approval on June 9, 2026, and a motion for final approval was filed July 15, 2026. This represents significant progress toward resolving a major component of the interchange MDL. The baseline filing did not disclose this settlement.

Visa increased its settlement coverage of opt-out merchants from 82% to 95% of Visa-branded payment card sales volume. All actions scheduled for trial beginning April 2026 have been resolved. This substantially reduces trial risk and explains the large payments and accrual drawdown during the period.

A new class action was filed April 21, 2026 by Potayto-Potahto and two other merchants, asserting antitrust violations consistent with MDL 1720 allegations and seeking damages from January 25, 2019 forward. The same plaintiffs also filed a motion for partial summary judgment in MDL 1720 challenging the validity of the forward-looking release in the Damages Class settlement. This represents a new litigation front attempting to circumvent or invalidate prior settlement releases.

Multiple new merchant groups filed interchange claims in the UK High Court in April, May, and June 2026, alleging unlawful restriction of competition. The April 2026 claim seeks damages from January 1, 2019 to present; the May/June claims seek damages going back at least six years from filing. This represents a material expansion of European interchange litigation beyond the existing 1,200+ merchant claims disclosed in the baseline.

Outstanding VE territory merchant claims decreased from approximately 150 to over 100, reflecting continued settlement activity. However, the disclosure now states merchants "continue to threaten similar proceedings" without quantifying the number (baseline said "over 30"), and notes standstill agreements without stating that several have been settled. This suggests ongoing settlement progress but also a less precise view of the threatened-claims pipeline.

The U.S. Securities Class Action was dismissed without leave to amend on June 29, 2026, after the court granted Visa's second motion to dismiss. This represents a favorable resolution of the securities litigation that was filed in November 2024 and amended in July 2025. The case is now effectively terminated.

The Debit Surcharge Class Action was dismissed without further leave to amend on December 12, 2025, and the plaintiff subsequently dismissed its appeal. This represents a favorable resolution of the case that was filed in December 2024 and survived an initial motion to dismiss in May 2025. The case is now effectively terminated.

The MiCamp Solutions case was dismissed without further leave to amend on December 11, 2025, after the court granted Visa's motion to dismiss the second amended complaint. This represents a favorable resolution of the case that had survived an initial partial dismissal in March 2025. The case is now effectively terminated.

The UK CAT issued a February 18, 2026 decision finding that interchange was not passed on by merchants (except in certain categories), and Visa has sought permission to appeal. On March 17, 2026, the UK Court of Appeal granted Visa permission to appeal the June 2025 CAT decision that certain interchange rates restrict competition. These developments represent mixed outcomes: the pass-on finding is favorable to Visa (limiting damages), while the permission to appeal the competition-law finding allows Visa to challenge an adverse ruling.

Nine-month net revenue growth accelerated from 11% to 15% year-over-year. The current period benefited from stronger nominal cross-border volume growth (14-15% vs. 13% in baseline) and nominal payments volume growth (10-11% vs. 5-6% in baseline), partially offset by higher client incentives. Exchange rate movements contributed approximately one percentage point to growth in both periods.

Nominal payments volume growth nearly doubled, accelerating from 5-6% in the baseline period to 10-11% in the current period. The current filing attributes this to broad-based growth across credit and debit, with ecommerce continuing to grow faster than face-to-face spend. This is the primary driver of service revenue growth.

Processed transactions growth remained steady at 9-10% year-over-year in both periods. The absolute number of transactions increased from 65.4 billion (Q3 FY25) to 71.7 billion (Q3 FY26) for the quarter, and from 189.9 billion to 207.1 billion for the nine-month period. This metric drives data processing revenue.

Value-added services revenue growth accelerated from 22-28% in the baseline period to 32-33% in the current period. The current filing attributes growth to Issuing Solutions, Acceptance Solutions, and Advisory and Other Services, with client consulting engagements up approximately 30% and increased demand for marketing services tied to sponsorship events (FIFA World Cup 2026 and Olympic/Paralympic Winter Games Milano Cortina 2026).

Operating expense growth decelerated significantly from 26-35% in the baseline period to 13-19% in the current period. The baseline period was heavily impacted by litigation provision increases; the current period's growth is driven by personnel expenses (including severance costs) and marketing expenses. Litigation provision actually decreased in the current period.

The current period reports severance costs of $563 million (both three and nine months) as a non-GAAP adjustment, described as "actions taken to drive operational efficiencies and reinvest in high-growth opportunities." The baseline period reported $213 million in severance costs to "realign our organizational structure." The current period's severance is 2.6x larger and appears in both the quarterly and nine-month figures, suggesting a more significant restructuring effort.

Litigation provision decreased from $615 million (Q3 FY25) to $253 million (Q3 FY26) for the quarter, and from $1,659 million to $1,290 million for the nine-month period. The current filing notes "lower accruals related to the U.S. covered litigation" as the driver. For the nine months, the company recorded additional accruals of $1.1 billion (vs. $1.5 billion in baseline) and made deposits of $875 million into the U.S. litigation escrow account (vs. $375 million in baseline).

Share repurchases increased from $13.2 billion (40 million shares) in the baseline period to $16.5 billion (50 million shares) in the current period, a 25% increase in dollar terms. The current filing also notes that in April 2026, the board authorized a new $20.0 billion share repurchase program, bringing remaining authorized funds to $28.4 billion as of June 30, 2026.

The quarterly dividend increased from $0.59 per share (declared July 2025) to $0.67 per share (declared July 2026), a 13.6% increase. For the nine months ended June 30, 2026, total dividends paid were $3.9 billion vs. $3.5 billion in the baseline period.

The current period includes a new $1.5 billion cash acquisition of Prisma and Newpay in Argentina, completed in February 2026. This is a material capital deployment not present in the baseline period. The baseline period reported a $946 million acquisition of Featurespace in December 2024.

The current period includes a $3.0 billion senior notes issuance in February 2026 with 3-10 year maturities. The baseline period reported a €3.5 billion ($3.9 billion) Euro-denominated senior notes issuance in May 2025 with 3-19 year maturities. Both represent material debt capital raises.

The current period includes a new class B stock exchange offer completed in May 2026, converting 123 million shares of class B-1 and B-2 stock into 61 million shares of class B-3 and 23 million shares of class C stock. This capital structure event is not present in the baseline period and relates to the company's retrospective responsibility plan mechanics.

The current filing discloses $1.5 billion of commercial paper outstanding as of June 30, 2026, and notes that the authorized program size was increased from $3.0 billion to $7.0 billion in July 2026. The baseline filing did not disclose commercial paper balances or program details, suggesting either no material usage or a new disclosure practice.

The current period includes a new deferred tax benefit of $351 million ($18 million, nine months) due to a change in U.S. taxation of certain foreign earnings. This is excluded from non-GAAP results as a one-time non-cash benefit. The baseline period did not report a comparable item.

The current filing adds new disclosure about regulatory developments in Brazil that will require Visa to extend settlement guarantees to sellers, increasing settlement exposure. The company is reassessing collateral requirements and risk mitigation in response. This is a new regulatory development not present in the baseline period.

Visa completed a $1.5 billion acquisition of Prisma and Newpay in Argentina in February 2026. Prisma provides card issuer processing; Newpay operates real-time payments, the Banelco ATM network, and a bill payment platform. The purchase price was allocated to technology ($184M), customer relationships ($405M), deferred tax liabilities ($199M), other net assets ($85M), and goodwill ($1,034M). The acquisition is subject to review by the Argentine competition authority.

Visa completed a new exchange offer in May 2026, accepting 3M class B-1 shares and 120M class B-2 shares in exchange for 61M newly-issued class B-3 shares and 23M class C shares. The B-1 and B-2 shares tendered were retired. The B-3 shares have conversion rate adjustments with four times the impact of B-1 and two times the impact of B-2, concentrating the retrospective responsibility plan's dilution effect on a smaller share base.

For the nine months ended June 30, 2026, Visa recorded $1.1 billion in additional interchange MDL accruals (down from $1.5 billion in the prior-year period) and deposited $875 million into the U.S. litigation escrow account (up from $375 million). The accrual balance of $1.1 billion as of June 30, 2026 is $822 million, down from $2,255 million a year earlier, reflecting $3.0 billion in payments during the nine-month period (primarily to opt-out and injunctive relief class merchants).

Visa increased its opt-out merchant settlement coverage from approximately 82% of Visa-branded payment card sales volume (as of June 30, 2025) to approximately 95% (as of June 30, 2026). The current filing also discloses that all actions scheduled for trial beginning in April 2026 in the Southern District of New York have been resolved, indicating substantial progress in resolving individual merchant litigation.

Visa and Mastercard entered into a superseding and amended settlement agreement on November 10, 2025 to resolve the Injunctive Relief Class claims in the interchange MDL. The court granted preliminary approval on June 9, 2026, and plaintiffs filed a motion for final approval on July 15, 2026. This represents a significant procedural milestone toward resolving the injunctive relief portion of the MDL.

Three merchants filed a new class action on April 21, 2026 (Potayto-Potahto Interchange Litigation) asserting federal antitrust violations consistent with the interchange MDL allegations, on behalf of merchants accepting Visa/Mastercard credit cards since January 25, 2019. The plaintiffs also filed a motion for partial summary judgment in MDL 1720 seeking to invalidate the forward-looking release in the Amended Settlement Agreement. Defendants filed a motion to stay, and the MDL Panel entered a Conditional Transfer Order to MDL 1720, which plaintiffs have opposed.

The UK Competition Appeal Tribunal issued a decision on February 18, 2026 finding that, except in certain merchant categories, interchange was not passed on by merchants. Visa has sought permission to appeal this decision. Separately, on March 17, 2026, the UK Court of Appeal granted Visa permission to appeal the June 2025 CAT decision that certain interchange rates restrict competition under UK competition law. These developments represent ongoing litigation over the competitive effects and pass-through of interchange fees in the UK.

In April, May, and June 2026, multiple groups of merchants filed new claims in the UK High Court against Visa entities, alleging that interchange fees on European transactions are an unlawful restriction of competition. The April 2026 claim seeks damages from January 1, 2019 to present; the May/June claims seek damages going back at least six years from filing. This represents a material expansion of European merchant litigation beyond the existing 1,200+ Merchant claims disclosed in prior periods.

On February 27, 2026, both the merchant and cardholder plaintiffs in the U.S. Debit Class Actions filed further amended consolidated complaints, adding several putative class representatives. This represents an expansion of the plaintiff group in the consolidated debit litigation, which was initially consolidated in late 2024.

The U.S. Securities Class Action was dismissed without leave to amend on June 29, 2026, after the court granted Visa's motion to dismiss the second amended complaint. This represents a favorable resolution of the securities litigation that was filed in November 2024 following the DOJ antitrust lawsuit.

The derivative shareholder actions filed between January and March 2025 are no longer disclosed in the current filing. These actions were brought on behalf of Visa Inc. against certain directors and officers, asserting breach of fiduciary duty and securities law violations related to the DOJ antitrust lawsuit. The removal suggests these cases may have been dismissed, consolidated, or otherwise resolved, though no explicit status update is provided.

The Debit Surcharge Class Action was dismissed without further leave to amend on December 12, 2025. The plaintiff appealed but subsequently dismissed the appeal, representing a favorable resolution of this litigation.

The EMV Chip Liability Shift class settlements with Visa, Mastercard, Discover, and American Express received final court approval on April 28, 2026, resolving this litigation.

The DOJ antitrust litigation disclosure no longer appears in the current filing's Legal Matters note. The baseline disclosed that Visa's motion to dismiss was denied on June 23, 2025. The removal suggests this matter may have been resolved, transferred, or is being disclosed elsewhere, though no explicit status update is provided in the current filing.

The accrual for VE territory covered litigation increased from $6 million as of June 30, 2025 to $89 million as of June 30, 2026. For the nine months ended June 30, 2026, Visa recorded $93 million in provisions for VE territory covered litigation (up from $19 million in the prior-year period) and made $13 million in payments (down from $85 million).

The book value of series A preferred stock increased from $388 million (June 30, 2025) to $402 million (June 30, 2026). The series B preferred stock book value was reduced to zero as of June 30, 2026 (from $99 million a year earlier), and series C preferred stock book value decreased to $112 million (from $384 million). For the nine months ended June 30, 2026, Visa recovered $120 million through conversion rate adjustments ($67M from series B, $53M from series C), with $3 million of the series B recovery charged to accumulated income after the book value reached zero.

Visa repurchased 50 million shares in the nine months ended June 30, 2026 (up from 40 million in the prior-year period) at an average cost of $328.29 per share (down from $330.39), for a total cost of $16.5 billion (up from $13.2 billion). In April 2026, the board authorized an additional $20.0 billion share repurchase program. As of June 30, 2026, remaining authorized funds were $28.4 billion.

Visa increased its quarterly dividend from $0.59 per share (declared July 2025) to $0.67 per share (declared July 2026), a 13.6% increase.

The effective income tax rate for the three months ended June 30, 2026 was 18% (up from 17% in the prior-year period). For the nine months ended June 30, 2026, the rate was 16% (down from 17%). The current period includes a $351 million deferred tax benefit due to a change in U.S. taxation of certain foreign earnings and a $217 million tax benefit from a tax position taken on certain expenses.