V · Earnings call · 2026Q3T · Full report
Income Tax Rate Changes
VISA INC. · 2026-10-27 · Importance 44 · Surprise 42 · In source text
Visa’s Q4 2026 tax rate was 18.4%, below expectations because of claim-of-right tax benefits related to recent legal settlements. The lower-than-expected tax rate was the primary reason Q4 EPS growth of 17% exceeded expectations. For fiscal 2027, Visa expects a tax rate of about 19%, compared with the 18.4% Q4 rate. Management attributed the expected increase primarily to the absence of claim-of-right benefits and said 19% is consistent with its long-term 19%–20% range.
Key facts
- Visa expects its FY2027 tax rate to be about 19%, within its long-term 19% to 20% range and higher than 2026, primarily because claim-of-right benefits will not recur.
- Visa Q4 FY2026 EPS grew 17% year-over-year in nominal and constant dollars, primarily because the tax rate was lower than expected.
- Visa's Q4 FY2026 tax rate was 18.4%, below expectations due to claim-of-right tax benefits related to recent legal settlements.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | committed | — | Visa expects its FY2027 tax rate to be about 19%, within its long-term 19% to 20% range and higher than 2026, primarily because… |