Here's our initial take on Visa's (V -1.00%) latest financial report.
Key Metrics
| Metric | Q3 2024 | Q3 2025 | Change | vs. Expectations |
|---|---|---|---|---|
| Revenue | $8.9 billion | $10.2 billion | 14% | Beat |
| Adjusted EPS | $2.42 | $2.98 | 23% | Beat |
| Processed transactions | 59.3 million | 65.4 million | 10% | n/a |
| Payment volumes | $3.3 billion | $3.6 billion | 9% | n/a |
Consumer Spending Drives a Solid Beat
Visa beat top- and bottom-line expectations for the quarter, reporting solid 14% revenue growth and 23% earnings-per-share growth. Processed transactions grew by 10% in the quarter, and payments volume grew by 9%, a faster pace than what was reported three months ago, suggesting the consumer is holding up better than some had feared.
CEO Ryan McInerney called consumer spending "resilient" in terms of both discretionary and nondiscretionary transactions and said that strength has continued since the quarter closed.
Outside of the U.S., there are other signs of a healthy consumer. Cross-border volumes excluding transactions within Europe were up 11%.
GAAP operating expenses jumped 35% in the quarter to $4 billion, driven by increases in provisions for litigation and due to higher personnel expenses. Excluding special items, non-GAAP operating expenses were up 13%, driven by increases in personnel and admin expenses.
During the quarter, Visa repurchased 14 million shares for $4.8 billion. Visa has reduced its share count by more than 10% over the past five years and still has $29.8 billion of remaining authorized funds for share repurchases as of June 30.
Immediate Market Reaction
The quarter was strong, but on a down day on Wall Street, investors are in a glass-half-empty mood. Visa shares were down about 3% in after-market trading on Tuesday following the release but ahead of the company's call with investors.
What to Watch
Visa is forecasting high-single-digit to low-double-digit net revenue and operating expense growth in the final three months of its fiscal year and said it expects low-double-digit full-year revenue growth. Earnings per share is likely to grow in the low teens for the year and high single digits in the company's fiscal fourth quarter.
This is a business that relies on the health of the consumer, and although macro headwinds have been kept at bay so far, investors need to be on the lookout for declining credit trends or other signs of decreases in spending.
Visa will also likely face continued questions about stablecoins and their potential to disrupt the company's core business. Visa is not standing idly by while the threat grows. In his statement, CEO McInerney said Visa's "continued focus on innovation and product development in dynamic areas like AI and stablecoins is helping to shape the future of commerce while delivering sustainable, long-term value" for shareholders.
