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November 7, 2025 • 3 min read
Visa, the global payments behemoth, recently filed its annual 10-K report, providing a detailed look at its financial health for the fiscal year ending September 30, 2025. In this post, we'll break down the numbers to understand how the company performed and what the key trends are. For those who want to review the full document, you can find it on the SEC's website here.
Visa's financial engine is firing on all cylinders. The company reported net revenues of $40.0 billion, an impressive 11% increase from the $35.9 billion in fiscal 2024. This growth was broad-based across its main revenue streams:
However, it's worth noting that Client Incentives, the deals Visa makes with banks and merchants to use its network, also grew by 14% to $15.8 billion. These incentives are a key cost of doing business and are subtracted from gross revenue. Their growth rate outpacing overall revenue is a trend to watch.
The following flow diagram provides a visual breakdown of Visa's revenue and expenses for the fiscal year.
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While revenue was strong, the bottom-line story is more complex. GAAP net income only grew by 2% to $20.1 billion. The primary reason for this muted growth was a significant surge in operating expenses, which climbed 30% to $16.0 billion.
The main culprit? A litigation provision of $2.56 billion, up from just $462 million in the prior year. The bulk of this charge, approximately $2.2 billion, is related to the long-running Interchange Multidistrict Litigation (MDL) involving merchant fees.
This large, non-recurring expense significantly distorts the picture of underlying profitability. To provide a clearer view, Visa also reports non-GAAP figures, which exclude items like this litigation charge. On a non-GAAP basis, net income rose a much healthier 11% to $22.5 billion, and non-GAAP earnings per share (EPS) increased by 14% to $11.47. This highlights the operational strength of the business when one-off legal costs are set aside.
The operational metrics behind the financial results confirm the sheer scale of Visa's network. For the twelve months ending June 30, 2025, the company facilitated $13.9 trillion in payments volume. Growth was solid across the board, with international payments volume (up 8%) growing slightly faster than in the U.S. (up 6%). This demonstrates the global shift toward digital payments, a trend Visa continues to capitalize on.
Visa also remains committed to returning capital to its shareholders. In fiscal 2025, the company repurchased $18.2 billion of its Class A common stock. As of the end of the fiscal year, a substantial $24.9 billion remains authorized for future buybacks, signaling continued confidence from management.
Visa's latest annual report paints a picture of a company with robust fundamentals, enjoying strong growth in transaction volumes and revenue. However, its GAAP earnings were significantly dampened by a major litigation provision. While the core business thrives on the global move away from cash, Visa must continue to navigate an intense competitive landscape, ongoing regulatory scrutiny worldwide, and the financial fallout from legacy legal battles.
Last updated: November 7, 2025