V 10-Q — Smart Summary

• Acquisition details: In February 2026, Visa acquired 100% of the equity interest of each of Prisma Medios de Pago S.A.U. (Prisma) and Newpay S.A.U. (Newpay) in Argentina for total cash consideration of $1.5 billion; Prisma provides credit, debit and prepaid card issuer processing, while Newpay is a multi-network infrastructure provider operating real-time payments services, the Banelco ATM network, and the bill payment platform PagoMisCuentas.
• Purchase price allocation: Of the $1,509 million total, $405 million was allocated to customer relationships (6-year weighted-average useful life), $184 million to technology (3-year useful life), $(202) million to deferred tax liabilities, $57 million to other net assets acquired, and $1,065 million to goodwill; the allocation remains preliminary and may be revised no later than one year from the acquisition date.
• Goodwill: The $1,065 million of goodwill is primarily attributable to synergies expected to be achieved from the acquisition and the assembled workforce, and is not deductible for tax purposes.
• Regulatory status: The acquisition is subject to review by the Argentine competition authority.

• Value-added services revenue: Revenue from value-added services was $3.3 billion and $2.6 billion for the three months ended March 31, 2026 and 2025, respectively, and $6.5 billion and $5.0 billion for the six months ended March 31, 2026 and 2025, respectively; this revenue is recognized within data processing, other, and service revenue.
• Deferred revenue: Deferred revenue was $1.9 billion as of March 31, 2026 and $1.7 billion as of September 30, 2025, recorded in accrued liabilities on the consolidated balance sheets.
• Remaining performance obligations: As of March 31, 2026, remaining performance obligations (comprising deferred revenue and contract revenue to be invoiced in future periods, primarily related to value-added services) totaled $5.5 billion; approximately half is expected to be recognized as revenue in the next two years and the remainder thereafter, subject to contract modifications and terminations.

• Reconciliation purpose: This note reconciles cash, cash equivalents, restricted cash and restricted cash equivalents reported on the consolidated balance sheets to the beginning and ending balances in the consolidated statements of cash flows.
• U.S. litigation escrow: The U.S. litigation escrow balance fell sharply to $665 million as of March 31, 2026 from $2,990 million as of September 30, 2025, driving most of the overall decline in total restricted balances.
• Customer collateral: Customer collateral restricted cash rose to $4,292 million as of March 31, 2026 from $3,625 million as of September 30, 2025; restricted cash within prepaid expenses and other current assets increased to $1,345 million from $1,208 million over the same period.

• U.S. litigation escrow — balance movement: The U.S. litigation escrow account fell from $2,990 million at the start of the six months ended March 31, 2026 to $665 million at period-end, driven by $2,950 million in net payments to opt-out merchants (associated with the interchange multidistrict litigation), partially offset by $625 million in new deposits; in the comparable prior-year period, the balance declined from $3,089 million to $2,926 million on $538 million in payments and $375 million in deposits.
• Europe plan — preferred stock and right to recover: For the six months ended March 31, 2026, VE territory covered losses of $28 million were recorded to the right to recover for covered losses contra-equity account, while conversion rate adjustments recovered $108 million in that account, reducing series B preferred stock by $60 million (to $7 million) and series C by $49 million (to $116 million); in the prior-year period, covered losses were $24 million and only $8 million was recovered through conversion rate adjustments.
• As-converted value vs. book value: As of March 31, 2026, the as-converted value of series B and C preferred stock totaled $1,131 million (vs. book value of $123 million), yielding total recovery for covered losses available of $1,087 million on an as-converted basis and $79 million on a book-value basis; as of September 30, 2025, the comparable figures were $1,389 million as-converted and $232 million book value, with $1,265 million and $108 million available, respectively.
• Conversion rate detail: The March 31, 2026 as-converted calculation uses 2 million series B shares at a 0.5960 conversion rate and 3 million series C shares at a 0.7170 conversion rate, applied to Visa's class A closing price of $302.24; at September 30, 2025 the rates were 0.6690 and 0.7640 against a closing price of $341.38.

• Recurring fair-value hierarchy: Level 1 assets totaled $9,875M at March 31, 2026 (vs. $16,315M at September 30, 2025), driven primarily by money market funds of $8,154M and U.S. Treasury securities of $1,264M; Level 2 assets totaled $288M (vs. $367M), comprising U.S. government-sponsored debt securities of $129M and derivative instruments of $159M; Level 1 liabilities were a deferred compensation liability of $266M and Level 2 liabilities were derivative instruments of $234M.
• Debt securities: At March 31, 2026, total debt securities had amortized cost of $1,386M, gross unrealized gains of $7M, and fair value of $1,393M, with $1,243M due within one year and $150M due after one year through five years; at September 30, 2025, amortized cost was $2,405M, gross unrealized gains were $16M, and fair value was $2,421M.
• Non-marketable equity securities: Carrying amount of privately held company investments was $1,067M at March 31, 2026 (vs. $1,056M at September 30, 2025), reflecting an initial cost basis of $712M, cumulative upward adjustments of $574M, and downward adjustments including impairment of $(219)M; upward adjustments in the six months ended March 31, 2026 were $10M with no downward adjustments, versus $7M upward and $(49)M downward in the prior-year six-month period.
• Debt fair value vs. carrying value: As of March 31, 2026, the carrying value of debt was $24.0 billion vs. an estimated fair value of $21.8 billion (Level 2); as of September 30, 2025, carrying value was $25.2 billion vs. estimated fair value of $23.3 billion; goodwill and indefinite-lived intangible assets showed no impairment as of the February 1, 2026 annual review, with no subsequent indicators of impairment as of March 31, 2026.

• Uncommenced leases: As of March 31, 2026, the Company had additional leases not yet commenced with estimated future payments of $560 million, expected to commence between fiscal 2027 and 2029 with lease terms between 9 and 14 years.

• February 2026 issuance: The Company issued fixed-rate senior notes in a public offering totaling $3.0 billion in aggregate principal, with maturities ranging between 3 and 10 years and interest rates ranging between 3.80% and 4.70%; interest is payable semi-annually on February 12 and August 12, commencing August 12, 2026, and net proceeds after discounts and issuance costs were approximately $3.0 billion, intended for general corporate purposes including potential refinancing of existing indebtedness.
• Repayment: During the six months ended March 31, 2026, the Company repaid $4.0 billion of principal upon maturity of its 3.15% Senior Notes due December 2025.
• Debt structure: All outstanding senior notes are senior unsecured obligations, ranking equally with existing and future unsecured and unsubordinated debt, not secured by any assets or guaranteed by any subsidiary; as of March 31, 2026, the Company was in compliance with all related covenants.
• Commercial paper program: The Company is authorized to issue up to $3.0 billion in outstanding commercial paper notes with maturities up to 397 days; as of March 31, 2026 and September 30, 2025, no obligations were outstanding under the program, though in April 2026 the Company issued and fully repaid $500 million of commercial paper.

• Settlement exposure: For the six months ended March 31, 2026, the Company's maximum daily settlement exposure was $168.6 billion and the average daily settlement exposure was $98.1 billion; exposure varies significantly day to day and is limited to the amount of unsettled Visa payment transactions at any point in time.
• Collateral held: As of March 31, 2026 and September 30, 2025, total collateral stood at $9.5 billion and $8.8 billion, respectively, comprising restricted cash, restricted cash equivalents, letters of credit, guarantees, pledged securities, and beneficial rights to trust assets.
• Loss history and contingency: The Company has historically experienced minimal losses under its settlement guarantee; however, future obligations, which could be material, are not determinable as they are dependent upon future events.

• Single reportable segment: Visa operates as one reportable segment, Payment Services, reflecting management's view that all activities are interrelated and each is dependent upon and supportive of the other.
• CODM and profitability measure: The Chief Executive Officer serves as CODM and uses consolidated net income to assess performance and allocate resources, including in the annual budgeting process and for monitoring performance against budget and prior-period results.
• No asset allocation: The CODM does not evaluate segment performance using asset information.
• Significant expenses: Significant expenses regularly provided to the CODM are presented on the consolidated statements of operations and are included within consolidated net income.

• Share repurchases: In the three months ended March 31, 2026, the company repurchased 25 million shares at an average cost of $320.66 per share for a total cost of $7,894 million; for the six months ended March 31, 2026, 36 million shares were repurchased at $327.29 average cost per share for $11,659 million total cost (including applicable taxes). As of March 31, 2026, unsettled repurchases totaled $125 million.
• Repurchase authorization: The April 2025 board-authorized $30.0 billion repurchase program had $13.2 billion remaining as of March 31, 2026; all programs prior to April 2025 have been completed. In April 2026, the board authorized a new $20.0 billion repurchase program; both programs have no expiration date.
• Dividends: Dividends declared and paid were $1,286 million for the three months ended March 31, 2026 and $2.6 billion for the six months ended March 31, 2026. On April 28, 2026, the board declared a quarterly cash dividend of $0.67 per share of class A common stock (on an as-converted basis for all other classes), payable June 1, 2026 to holders of record as of May 12, 2026.
• U.S. retrospective responsibility plan: For the six months ended March 31, 2026, deposits into the U.S. litigation escrow account totaled $625 million at an effective price per share of $345.17, reducing as-converted class B-1 and B-2 shares by 2 million equivalent class A shares. Under the Europe retrospective responsibility plan, recovery through conversion rate adjustments was $60 million (Series B) and $49 million (Series C) for the six months ended March 31, 2026, at an effective price per share of $330.96.

Capital structure: EPS is computed across 4 share classes (Class A, B-1, B-2, and C common stock) plus participating securities, with income allocated based on weighted-average as-converted Class A shares outstanding. Diluted Class A EPS includes assumed conversion of Class B-1, B-2, and C common stock and participating securities on an as-converted basis, plus incremental common stock equivalents under the treasury stock method; common stock equivalents were not material for any period presented.

Year-over-year EPS growth: Diluted Class A EPS rose from $2.32 to $3.14 for the three months ended March 31 (2025 vs. 2026) and from $4.90 to $6.17 for the six months ended March 31 (2025 vs. 2026).

Share count trend: Weighted-average diluted Class A shares outstanding (on an as-converted basis) declined from 1,974 million to 1,916 million for the three-month period and from 1,979 million to 1,924 million for the six-month period, year over year.

• EIP grants (six months ended March 31, 2026): 714,321 non-qualified stock options granted at a weighted-average grant date fair value of $76.23 and weighted-average exercise price of $324.13; 2,539,719 restricted stock units at a weighted-average grant date fair value of $324.55; and 381,324 performance shares (representing the maximum number which could be earned) at a weighted-average grant date fair value of $344.15.
• Compensation cost: Share-based compensation cost related to the EIP was $264 million for the three months ended March 31, 2026 vs. $250 million for the three months ended March 31, 2025; for the six months ended March 31, 2026 and 2025, cost was $485 million and $465 million, respectively.

• Effective tax rates: For the three and six months ended March 31, 2026, effective income tax rates were 16% and 15%, respectively; for the three and six months ended March 31, 2025, they were 16% and 17%, respectively.
• Period-specific tax items: For the three and six months ended March 31, 2026, a $217 million tax benefit arose from a tax position taken on certain expenses; additionally, for the six months ended March 31, 2026, a $333 million deferred tax benefit resulted from a change in U.S. taxation of certain foreign earnings. For the three and six months ended March 31, 2025, a $222 million tax benefit from a similar tax position on certain expenses was partially offset by a $71 million tax expense related to the resolution of a tax matter.
• Unrecognized tax benefits: For the three and six months ended March 31, 2026, gross unrecognized tax benefits increased $24 million and $37 million, respectively, and net unrecognized tax benefits increased $22 million and $33 million, respectively, reflecting various tax positions across several jurisdictions.
• IRS examination: The IRS completed its examination of the Company's U.S. federal income tax returns for fiscal 2016 through 2018; the Company is filing an appeal due to an unresolved issue related to certain income tax deductions.

Legal Proceedings

• Interchange MDL – Class Actions (amended settlement Nov 10, 2025): Visa and Mastercard entered superseding amended settlement for Injunctive Relief Class; April 21, 2026 motion challenges forward-looking release in Damages Class settlement.
• Interchange MDL – Individual Merchant Actions (~94% settled): Visa settled with merchants representing ~94% of opted-out sales volume; all April 2026 Southern District of New York trial actions resolved.
• U.S. Covered Litigation accrual ($615M as of March 31, 2026): $894M additional accrual and $625M deposited into escrow for six months ended March 31, 2026; loss range materially uncertain.
• VE Territory Covered Litigation accrual ($21M as of March 31, 2026): $21M provision recorded for six months ended March 31, 2026; recovered via class A conversion rate adjustments to series B and C preferred stock.
• UK CAT / Court of Appeal (March 17, 2026): UK Court of Appeal granted Visa permission to appeal June 2025 CAT decision that certain interchange rates restrict competition; February 18, 2026 CAT decision found interchange generally not passed on by merchants.
• Europe Interchange Litigation (April 20, 2026): Merchants from across Europe filed UK High Court claim against several Visa entities alleging unlawful interchange fees on European transactions from January 1, 2019 to present.
• Potayto-Potahto Interchange Litigation (April 21, 2026): New federal antitrust class action filed in Southern District of New York on behalf of merchants accepting Visa/Mastercard credit cards since January 25, 2019, seeking damages from that date.
• U.S. Securities Class Action (January 9, 2026): Plaintiff filed second amended complaint after December 10, 2025 dismissal with leave to amend; Visa moved to dismiss January 23, 2026.
• U.S. ATM Access Fee – Burke (December 18, 2025): Plaintiffs filed motion for preliminary approval of class settlement with Visa and Mastercard.
• U.S. Debit Class Actions (February 27, 2026): Merchants and cardholders filed further amended consolidated complaints adding several putative class representatives.
• Debit Surcharge Class Action (December 12, 2025): Court dismissed amended complaint without further leave to amend; plaintiff's subsequent appeal dismissed.
• EMV Chip Liability Shift (February 19, 2026): Plaintiffs filed motion for final approval of class settlements with Visa/Mastercard and with Discover/American Express.

• Revenue growth: Net revenue grew 17% to $11,230 million in the three months ended March 31, 2026, and 16% to $22,131 million in the six months ended March 31, 2026, primarily driven by growth in nominal cross-border volume, nominal payments volume, and processed transactions, partially offset by higher client incentives; exchange rate movements added approximately one percentage point to net revenue growth in both periods.
• Operating expenses: GAAP operating expenses decreased 4% to $3,996 million in Q2 (driven by lower litigation provision, partially offset by higher personnel and marketing expenses) but increased 10% to $8,160 million for the six-month period (driven by higher marketing, personnel, and professional fees); non-GAAP operating expenses increased 17% in both the three- and six-month periods, primarily driven by higher personnel, marketing, and professional fees.
• Acquisition and debt issuance: In February 2026, Visa acquired Prisma Medios de Pago S.A.U. and Newpay S.A.U. in Argentina for total cash consideration of $1.5 billion, and issued fixed-rate senior notes in an aggregate principal amount of $3.0 billion with maturities ranging between 3 and 10 years.
• Capital return and litigation: For the six months ended March 31, 2026, Visa repurchased 36 million shares of class A common stock for $11.7 billion, with $13.2 billion remaining under its repurchase program as of March 31, 2026, and a new $20.0 billion repurchase program authorized in April 2026; the company also recorded additional accruals of $894 million related to interchange multidistrict litigation and made deposits of $625 million into the U.S. litigation escrow account during the same six-month period.

• Payments volume definition: Payments volume represents the aggregate dollar amount of purchases made with cards and other form factors carrying the Visa, Visa Electron, V PAY and Interlink brands and excludes Europe co-badged volume; nominal payments volume is denominated in U.S. dollars and calculated each quarter by applying an established U.S. dollar/foreign currency exchange rate for each local currency in which volumes are reported.
• Processed transactions definition: Processed transactions include payments and cash transactions using cards and other form factors carrying the Visa, Visa Electron, V PAY, Interlink and PLUS brands processed on Visa's networks.
• Revenue linkage: Payments volume is the primary driver of service revenue, and the number of processed transactions is the primary driver of data processing revenue.

• Service revenue lag: Service revenue in a given quarter is primarily assessed based on nominal payments volume in the prior quarter; revenue reported for the three and six months ended March 31, 2026 and 2025 was based on volume reported for the three and six months ended December 31, 2025 and 2024, respectively.
• Processed transactions: Visa processed transactions were 66,086 million for the three months ended March 31, 2026 vs. 60,651 million in the prior-year period (9% growth), and 135,485 million for the six months ended March 31, 2026 vs. 124,448 million in the prior-year period (also 9% growth).
• Constant-dollar disclosure: Growth on a constant-dollar basis excludes the impact of foreign currency fluctuations against the U.S. dollar; cash volume generally consists of cash access transactions, balance access transactions, balance transfers, and convenience checks.

• U.S. revenue: Grew 13% to $4,319 million for the three months ended March 31, 2026 (vs. $3,811 million) and 12% to $8,482 million for the six months ended March 31, 2026 (vs. $7,549 million).
• International revenue: Grew 20% to $6,911 million for the three months ended March 31, 2026 (vs. $5,783 million) and 18% to $13,649 million for the six months ended March 31, 2026 (vs. $11,555 million), outpacing U.S. growth in both periods.

• Overall growth: Net revenue increased 17% for the three months ended March 31, 2026 (to $11,230 million from $9,594 million) and 16% for the six months ended March 31, 2026 (to $22,131 million from $19,104 million), driven by growth in nominal cross-border volume, nominal payments volume, and processed transactions, partially offset by higher client incentives.
• Volume drivers: Nominal payments volume grew 10%, supported by broad-based growth across both credit and debit spending, with ecommerce continuing to grow faster than face-to-face spend; cross-border volume growth was supported by cross-border ecommerce and travel-related activity, underpinned by continued resilience in consumer spending and ongoing expansion in digital commerce.
• FX impact: For both the three and six months ended March 31, 2026, exchange rate movements increased net revenue growth by approximately one percentage point; management notes foreign exchange rate movements and volatility have contributed to periodic variability and may continue to do so.

• Service revenue: Increased over both the three and six-month prior-year comparable periods primarily due to growth in nominal payments volume of 10%, select pricing modifications, and growth in card benefits.
• Data processing revenue: Increased over both periods primarily due to growth in processed transactions of 9%, select pricing modifications, growth in value-added services, and higher cross-border transaction mix.
• International transaction revenue: Increased over both periods primarily due to growth in nominal cross-border volume of 17% and 16%, respectively, excluding transactions within Europe, partially offset by business mix and lower currency volatility.
• Value-added services revenue: Grew 29% and 31% over the three and six-month prior-year comparable periods to $3.3 billion and $6.5 billion, respectively, driven by growth in Issuing Solutions, Advisory and Other Services, and Acceptance Solutions; client consulting engagements increased 32% and 35% over the respective periods, processed transactions increased 9%, and payment credentials increased 6% over the prior-year comparable period.
• Client incentives: Increased over both periods primarily due to growth in payments volume; future amounts will vary based on performance expectations, actual client performance, contract amendments, or new contract execution.

• Personnel: Personnel expenses rose 11% to $1,841M in the three months ended March 31, 2026 and 4% to $3,605M in the six months ended March 31, 2026, driven by a higher headcount and compensation in growth-focused areas including acquisitions; the six-month increase was partially offset by prior-year severance costs related to an organizational realignment.
• Marketing: Marketing expenses rose 44% to $545M in Q2 and 39% to $955M for the six months ended March 31, 2026, driven by higher client marketing spend and campaigns including the Olympic and Paralympic Winter Games Milano Cortina 2026 and the FIFA World Cup 2026™.
• Professional fees: Professional fees rose 37% to $238M in Q2 and 41% to $446M for the six months, driven by higher client engagement expenses, costs related to the acquisitions of Prisma and Newpay, and higher legal fees.
• Litigation provision: Litigation provision fell 67% to $329M in Q2 and was roughly flat at $1,037M for the six months ended March 31, 2026, primarily reflecting lower accruals related to U.S. covered litigation, partially offset by higher accruals for uncovered legal matters.

• Interest expense: Rose 12% to $178 million in the three months ended March 31, 2026 (vs. $158 million) and 9% to $372 million in the six months ended March 31, 2026 (vs. $340 million).
• Investment income (expense) and other: Declined 26% to $118 million in the three-month period (vs. $161 million) and 3% to $301 million in the six-month period (vs. $309 million), driven primarily by lower interest income on cash and investments, partially offset by lower losses on equity investments.
• Total non-operating result: Swung to a loss of $60 million in the three months ended March 31, 2026 from income of $3 million in the prior-year period (change deemed not meaningful), and widened to a loss of $71 million from a loss of $31 million in the six-month period (129% change).

• Effective tax rates: The effective income tax rate was 16% for both the three months ended March 31, 2026 and March 31, 2025; for the six months ended March 31, 2026 it was 15% versus 17% in the prior-year comparable period.
• Current-period tax benefits: For the three and six months ended March 31, 2026, a $217 million tax benefit arose from a tax position taken on certain expenses; additionally, for the six months ended March 31, 2026, a $333 million deferred tax benefit resulted from a change in the U.S. taxation of certain foreign earnings.
• Prior-year period items: For the three and six months ended March 31, 2025, a $222 million tax benefit from a tax position taken on certain expenses was partially offset by a $71 million tax expense related to the resolution of a tax matter.

• Non-GAAP adjustments — Q2 FY2026: For the three months ended March 31, 2026, GAAP net income of $6,021M and diluted EPS of $3.14 reconcile to non-GAAP net income of $6,342M and diluted EPS of $3.31, with the largest adjustment being a $311M litigation provision exclusion ($242M after-tax, $0.13 per share), followed by $50M amortization of acquired intangibles ($37M after-tax) and $36M acquisition-related costs ($30M after-tax).
• Non-GAAP adjustments — H1 FY2026: For the six months ended March 31, 2026, GAAP net income of $11,874M and diluted EPS of $6.17 reconcile to non-GAAP net income of $12,466M and diluted EPS of $6.48; the $1,018M litigation provision ($790M after-tax, $0.41 per share) is the dominant adjustment, partially offset by a $333M deferred tax benefit excluded as a one-time non-cash item that reduced GAAP tax provision but is added back to arrive at non-GAAP, lowering non-GAAP net income by $333M relative to what it otherwise would have been.
• Non-GAAP effective tax rate: The non-GAAP effective income tax rate was 16.4% for Q2 FY2026 and 17.4% for H1 FY2026, versus GAAP rates of 16.1% and 14.6%, respectively; the H1 divergence is primarily due to the exclusion of the deferred tax benefit.
• Prior-year comparables: For the six months ended March 31, 2025, two additional items were excluded — $213M severance costs ($168M after-tax, $0.08 per share) and $39M lease consolidation costs ($30M after-tax, $0.02 per share) — items that did not recur in the six months ended March 31, 2026.

• Operating cash flow: Cash provided by operating activities was $9,788M for the six months ended March 31, 2026, down from $10,091M in the prior-year comparable period, primarily due to higher litigation payments, timing of income tax payments, and higher incentive payments, partially offset by growth in the underlying business.
• Investing cash flow: Cash used in investing activities was $(517)M vs. cash provided of $660M in the prior-year period, with the swing driven primarily by lower proceeds from maturities and sales of investment securities.
• Financing cash flow: Cash used in financing activities increased to $(15,396)M from $(11,135)M, primarily due to the principal debt repayment upon maturity of senior notes due December 2025 and higher share repurchases, partially offset by proceeds from the issuance of senior notes.

• Primary liquidity sources: Cash on hand, operating cash flow, investment portfolio (held in cash and cash equivalents and short-term or long-term investment securities based on funding requirements), and access to equity and borrowing arrangements.
• Liquidity adequacy: Management believes current and projected sources of liquidity will be sufficient to meet projected liquidity needs for more than the next 12 months, based on current cash flow budgets and forecasts.
• Senior notes issuance: In February 2026, the company issued fixed-rate senior notes in a public offering with an aggregate principal amount of $3.0 billion, with maturities ranging between 3 and 10 years.

• Share repurchases: Repurchased $11.7 billion of class A common stock in the open market for the six months ended March 31, 2026; remaining authorized funds under the existing program were $13.2 billion as of March 31, 2026, and in April 2026 the board authorized a new $20.0 billion repurchase program providing multi-year flexibility.
• Dividends: Declared and paid $2.6 billion in dividends for the six months ended March 31, 2026; on April 28, 2026 the board declared a quarterly cash dividend of $0.67 per share of class A common stock, with quarterly cash dividends expected to continue subject to board approval.
• Senior notes & debt repayment: Repaid $4.0 billion of principal upon maturity of senior notes due December 2025; a principal payment of €1.4 billion ($1.6 billion) on senior notes is due June 2026, for which the company states it has sufficient liquidity.
• Acquisition & litigation: In February 2026, acquired Prisma and Newpay in Argentina for $1.5 billion in cash; for the six months ended March 31, 2026, deposited $625 million into the U.S. litigation escrow account related to interchange multidistrict litigation, bringing the escrow balance to $665 million as of March 31, 2026, reflected as restricted cash equivalents.

• Scope of indemnification: Visa indemnifies its issuing and acquiring clients for settlement losses suffered due to the failure of any other client to fund its settlement obligations in accordance with Visa's operating rules, with the indemnification amount limited to the amount of unsettled Visa payment transactions at any point in time.
• Risk management: Visa maintains and regularly reviews global settlement risk policies and procedures to manage settlement risk, which may require clients to post collateral if certain credit standards are not met.
• Brazil regulatory risk: Recent regulatory developments in Brazil, including enhanced requirements for payment scheme operators like Visa, may increase Visa's settlement-related risks and residual exposure.

• ASU 2023-09 (income tax disclosures): Issued December 2023, requires disaggregated effective tax rate reconciliation and income taxes paid disclosures; effective for annual periods beginning October 1, 2025, with prospective application (retrospective option available); adoption is expected to result in additional disclosures only.
• ASU 2024-03 (expense disaggregation): Issued November 2024 (subsequently amended), requires disclosure of additional information about specific expense categories underlying income statement line items; effective for annual periods beginning October 1, 2027 and interim periods beginning October 1, 2028, with prospective or retrospective application; impact on disclosures is currently being evaluated.
• ASU 2025-06 (internal-use software): Issued September 2025, eliminates project stage-based capitalization and clarifies the probable-to-complete threshold for capitalizing software costs; effective for annual and interim periods beginning October 1, 2028, with prospective, retrospective, or modified transition; impact on consolidated financial statements is currently being evaluated.