Visa beat estimates for revenue last quarter, driven by strong continuing growth in its payments volume.
Net revenue was US$10.2 billion, up 14% year-over-year and beating estimates of $9.84 billion. Its non-GAAP earnings per share were $2.98, rising 23%.
"Visa delivered another strong quarter, with 14% net revenue growth, 12% GAAP EPS growth and 23% non-GAAP EPS growth,” said Visa CEO Ryan McInerney. “Consumer spending remains resilient, with continued strength indiscretionary 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.”
GAAP net income was US$5.3 billion, up 8% year-on-year. Total operating expenses were $4.0 billion, compared with $2.96 billion one year ago.
Visa’s payments volume increased by 8% year-over-year last quarter, having also seen 8% year-over-year growth in the quarter ending in March. Total cross-border volumes were up 12%.
Total processed transactions grew by 10% to 65.4 billion.
The company expects high single digit to low double digit growth in net revenue next quarter, with low double digit growth across its 2025 fiscal year.
Visa is currently trialling its new Klarna Card debit card product in the United States after a launch last month, and plans to roll out the card worldwide later this year. The card, produced in partnership with Klarna, allows buyers to pay later at over 150 million Visa-accepting storefronts.
Visa’s (NYSE: V) share price closed at US$351.29, down from a previous close of $355.47, before falling to $343.31 in after-hours trading. Its market capitalisation is $681.21 billion.
