Visa Inc. announced unaudited consolidated earnings results for the first quarter ended December 31, 2015. For the quarter, the company reported net income of $1,941 million or $0.80 per diluted class A common stock or $1.32 per diluted class B common stock or $3.20 per diluted class C common stock on total operating revenues of $3,565 million compared to net income of $1,569 million or $0.63 per diluted class A common stock or $1.04 per diluted class B common stock or $2.53 per diluted class C common stock on total operating revenues of $3,382 million reported in the same period last year. Operating income was $2,396 million against $2,238 million reported last year. Income before income taxes was $2,639 million against $2,262 million reported last year. Net cash provided by operating activities was $1,979 million against 1,761 million a year ago. Purchases of property, equipment, technology and intangible assets were $126 million compared to $104 million a year ago. Excluding the $255 million non-cash, non-operating income recorded upon remeasurement of the Visa Europe put option, adjusted net income for the quarter was $1.7 billion, an increase of 7% over the prior year, or $0.69 per share, an increase of 10% over the prior year. Net operating revenue in the fiscal first quarter of 2016 increased 5% nominally or 8% on a constant dollar basis over the prior year, driven by growth in service revenues, data processing revenues and international transaction revenues. Currency rate shifts versus the prior year negatively impacted reported net operating revenue growth by approximately 3%.

While the company is not changing its financial outlook for the fiscal 2016 full-year, continued moderating cross-border volume growth and subdued domestic activity across its geographies could ultimately affect its results. The company expects annual net revenue growth of high single-digit to low double-digit range on a constant dollar basis, with an expectation of about 3% of negative foreign currency impact; client incentives as a percent of gross revenues: 17.5% to 18.5% range; annual operating margin of mid 60s; adjusted effective tax rate of low 30s; annual adjusted diluted class A common stock earnings per share growth: Low-end of the mid-teens range on a constant dollar basis, with an expectation of about 4% of negative foreign currency impact; and annual free cash flow about $7 billion.