Visa posts strong Q2 FY2025 as payments volume and profitability rise

Overview

Visa reported another strong quarter in Q2 FY2025, demonstrating the resilience of consumer spending and the strength of its diversified business model. Growth was broad-based across payments volume, cross-border activity, and processed transactions.

CEO Ryan McInerney commented: “Visa’s strong 9% fiscal second quarter net revenue growth was driven by healthy trends in payments volume, cross-border volume and processed transactions. Consumer spending remained resilient, even with macroeconomic uncertainty. Our strategy across consumer payments, commercial and money movement solutions and value-added services, our diversified business model, and our focus on innovation position us well for the rest of the fiscal year and beyond.”

Q2 FY2025 vs. Q2 FY2024:

Net revenue increased to $9.6bn (+9% YoY), supported by strong momentum across all major business drivers.
- Service revenue recorded a value of $4.4bn (+9% YoY).
- Data processing revenue grew to $4.7bn (+10% YoY).
- International transaction revenue also increased to $3.3bn (+10% YoY).
- Other revenues were $937m (+24% YoY).
- Client incentives were ($3.7bn) (+15% YoY growth in incentives granted).
Payments volume increased +8% YoY (constant currency), driven by solid consumer spending across both debit and credit products globally, with particular strength in the U.S. and several key international markets.
Cross-border volume excluding Intra-Europe increased +13% YoY (constant currency), reflecting continued recovery and expansion in international travel, especially for outbound U.S. and Asia Pacific travel corridors.
Total cross-border volume also grew +13% YoY (constant currency), with momentum remained strong across both card-present and card-not-present (e-commerce) transactions, supported by business and leisure travel.
Processed transactions were +9% YoY, growth being broad-based across regions, with increased transaction activity from contactless payments and the continued shift to digital commerce.
GAAP net income declined slightly to $4.6bn (-2% YoY), impacted by a $992m litigation provision expense related to the interchange multidistrict litigation (MDL) case.
Non-GAAP net income rose to $5.4bn (+6% YoY), being adjusted for special items, reflecting robust underlying earnings growth.
GAAP EPS was $2.32 (+1% YoY), with minimal impact from litigation due to offsetting operational strength.
Non-GAAP EPS grew to $2.76 (+10% YoY), driven by high operating leverage and volume expansion.
Operating expenses were $4.2bn (+22% YoY), primarily due to litigation provision. Excluding special items, expenses rose +7% YoY.
Operating cash flow was $10.1bn for the first six months of fiscal 2025 (+24% YoY).
Cash, cash equivalents & investment securities were $15.2bn as of March 31, 2025.
Visa repurchased approximately $4.5bn worth of stock in Q2 FY2025, buying back 13m shares at an average price of $340.26.
The company paid $1.1bn in dividends, maintaining a quarterly payout of $0.590 per share.
In April 2025, the Board approved a new $30bn multi-year share repurchase program, reinforcing Visa’s long-term capital return strategy.

Visa reaffirmed its fiscal year 2025 outlook, expecting high-single-digit net revenue growth on a constant-currency basis, supported by sustained strength in payments volume, cross-border travel activity, and continued expansion of value-added services. The company anticipates that non-GAAP EPS will grow at a faster pace than revenue, benefiting from operating leverage and disciplined expense management. Visa projects an effective tax rate of approximately 16.5% to 17.5% for the year. While acknowledging potential macroeconomic and regulatory headwinds, Visa remains confident in its long-term growth strategy and continues to prioritize innovation and global digital enablement.

In anticipation of the publication of the quarterly results, the V share price appreciated by approximately +1.2% on the reporting day, and after the publication, the stock price continued its slight appreciation, increasing by another +0.8%, thus reaching the 50-day moving average and increasing slightly above it, which could indicate a good signal for investors, given that the main financial results were in line with the estimates of Wall Street analysts. Also, since the beginning of 2025, the V share price managed to appreciate by approximately +8.6%, despite the uncertainty that has arisen globally, especially in recent months.