CoStar shares fall nearly 13% after results, while Visa drops more than 1%
Key Facts
Visa shares fell more than 1% in after-hours trading, while CoStar Group shares dropped about 13% after the companies reported results on October 27, 2026, despite both beating earnings estimates. Visa posted adjusted earnings of $3.48 per share in its fiscal fourth quarter, $0.04 above analysts’ estimate of $3.44. Revenue was $12.1 billion, compared with expectations of $12.09 billion. CoStar reported record quarterly revenue and higher adjusted earnings per share, alongside an increase to its full-year outlook. Reuters reported that Visa shares fell more than 1% in after-hours trading, while MT Newswires, via Yahoo Finance, reported that CoStar fell about 13% after the market close.
Visa’s net revenue rose 13% in the fiscal fourth quarter to $12.1 billion, driven by year-over-year growth in payment volumes, cross-border transactions and transactions processed by the company. The company said in its statement that the growth spanned multiple drivers across its payments network. GAAP net income was $6.0 billion, up 18% from the same period. GAAP earnings per share reached $3.19, up 22%, while adjusted earnings per share rose 17% to $3.48. The figures reflect growth in revenue and earnings, alongside a modest beat on analysts’ estimates for revenue and adjusted earnings per share.
Visa set its fiscal 2027 outlook for net revenue growth in the low teens, with expected earnings-per-share growth ranging from the low teens to the beginning of the high teens. Reuters reported the outlook following the fourth-quarter results. The guidance followed strong quarterly revenue performance, but puts the path for future growth at the center of investor attention. The company’s shares closed at $399.38 on October 27, 2026, the day it reported results. They then fell more than 1% in after-hours trading following the release.
By contrast, CoStar’s revenue in the third quarter of 2026 rose to $952 million, up 14% from $834 million a year earlier. Adjusted earnings per share climbed to $0.38, up 65% year over year. On a GAAP basis, the group posted net income of $74 million, compared with a loss of $31 million in the third quarter of 2025. Diluted earnings per share were $0.18, following a loss of $0.07 per share a year earlier. The company reported results for the quarter ended September 30, 2026, describing quarterly revenue as a record.
CoStar raised its 2026 revenue outlook to a range of $3.75 billion to $3.77 billion and increased its adjusted EBITDA target to a range of $820 million to $840 million. For the fourth quarter, it forecast revenue of $976 million to $996 million. The guidance gives investors new benchmarks for tracking the company’s performance after revenue and adjusted earnings grew in the third quarter. CoStar also said its acquisition of Vexcel is expected to close in the first quarter of 2027. It expects the deal to be accretive to adjusted earnings per share in the first full year of ownership.
CoStar shares closed at $33.70 on October 26, the trading session before the company reported results after the market close the following day. After the report, the stock fell about 13% in after-hours trading, according to MT Newswires via Yahoo Finance. The closing date differs from the post-announcement move, so the October 26 price does not reflect trading after the results. Visa, meanwhile, closed at $399.38 on October 27 before falling more than 1% in after-hours trading. The next announced milestones are Visa’s fiscal 2027 outlook and the expected completion of the Vexcel deal in the first quarter of that year.