Visa reports fiscal Q3 2025 results with double-digit revenue and EPS growth

Overview

Visa delivered a solid fiscal third quarter with 14% net revenue growth and double-digit EPS gains, supported by resilient consumer spending, particularly in discretionary and non-discretionary categories in the U.S., and robust cross-border activity. Management highlighted continued innovation in AI, payments infrastructure, and digital assets, positioning the company for long-term growth.

Ryan McInerney, Chief Executive Officer, Visa: “Visa delivered another strong quarter, with 14% net revenue growth, 12% GAAP EPS growth and 23% non-GAAP EPS growth. Healthy business driver trends continued through the quarter and into the first few weeks of July. Consumer spending remains resilient, with continued strength in discretionary and non-discretionary growth in the U.S. Looking ahead, our 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 our shareholders.”

Q3 FY2025 vs. Q3 FY2024:

• Net revenue was $10.2bn (+14% YoY) on both nominal and constant-dollar bases, reflecting growth in payments volume, cross-border activity, and processed transactions.
• GAAP net income was $5.3bn (+8% YoY), or $2.69 per share (+12% YoY), while non-GAAP net income was $5.8bn, or $2.98 per share (+19% and +23% YoY, respectively).
• Payments Volume grew to $3.62tn in the quarter (+8% YoY) in constant dollars, supported by both U.S. and international debit and credit growth. U.S. volumes grew 6-7%, led by debit transactions.
• Cross-Border Volume increased 12% in total and 11% excluding intra-Europe, driven by robust travel and e-commerce activity. CEMEA and Latin America delivered double-digit constant-currency growth, offsetting softer trends in Asia-Pacific.
• Processed Transactions were 65.4bn (+10% YoY), with continued gains in both card-present and card-not-present categories.
• GAAP operating expenses rose to $4.0bn (+35% YoY), primarily driven by a $615m litigation provision and higher personnel costs. Non-GAAP operating expenses rose 13%, reflecting underlying business growth without one-time legal and acquisition costs.
• Free cash flow in Q3 was $6.3bn, driven by strong operating cash generation of $6.7bn, while shareholder returns totaled $6.0bn through $4.8bn in buybacks and $1.2bn in dividends.

Visa reaffirmed its full-year fiscal 2025 outlook, expecting low double-digit net revenue growth on a non-GAAP adjusted constant-dollar basis, supported by healthy consumer spending and continued strength in cross-border transaction momentum. Operating expenses are projected to grow in the high single- to low double-digit range, while earnings per share are expected to increase in the low-teens range. Management emphasized its strategic focus on driving innovation in real-time payments, AI-powered fraud prevention, and the enablement of digital assets to capture future growth opportunities. The company plans to leverage its $20.4bn cash and investment position to balance shareholder returns and strategic initiatives. Visa expects to return over $19bn to shareholders in fiscal 2025 through a combination of dividends and share buybacks while maintaining a strong liquidity position to support long-term growth.

Visa is trading down 1.18%, as the stock remains slightly below the 50-day SMA, but comfortably above the 200-day SMA, signaling a neutral-to-bullish medium-term trend. The RSI (14) is at 47.46, indicating that momentum is weak but not oversold. Key support levels are around $340 (recent consolidation) and $333 (200-day SMA), while resistance is near $357-$360. A sustained move above $360 could confirm a bullish continuation, while a drop below $340 would signal a potential short-term correction.

Author: Andreea-Roxana Danci