We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Visa Q4 Earnings Beat Estimates on Processed Transactions
Read MoreHide Full Article
Key Takeaways
Visa's Q4 FY25 EPS of $2.98 beat estimates, rising 10% YoY on strong transaction growth.
Net revenues climbed 12% YoY to $10.7B, fueled by higher payment and cross-border volumes.
Operating expenses rose 13% YoY as personnel, professional fees and admin costs increased.
Visa Inc. (V - Free Report) reported fourth-quarter fiscal 2025 earnings per share (EPS) of $2.98, which beat the Zacks Consensus Estimate of $2.97. The bottom line increased 10% year over year.
Net revenues of $10.7 billion improved 12% year over year. The top line beat the consensus mark by 1%.
The strong quarterly results benefited from higher processed transactions, payment and cross-border volumes. However, the upside was partly offset by increased operating expenses, primarily personnel costs, professional fees and general and administrative expenses.
Visa's payments volume increased 9% year over year on a constant-dollar basis in the fiscal fourth quarter, driven by expanding operations across the United States, Europe, CEMEA and LAC regions. Processed transactions (implying transactions processed by Visa) grew 10% year over year to 67.7 billion. The metric beat our estimate of 67.4 billion.
On a constant-dollar basis, the cross-border volume of Visa rose 12% year over year. Excluding transactions within Europe, its cross-border volume (that boosts a company’s international transaction revenues) jumped 11% year over year on a constant-dollar basis.
Visa’s Q4 Operational Performance
Service revenues (depending on the payment volume in the previous quarter) increased 10% year over year to $4.6 billion in the September quarter, attributable to expanding payment volumes. The metric beat our estimate by 0.3%.
Data processing revenues of $5.4 billion grew 17% year over year and beat the Zacks Consensus Estimate of $5.2 billion.
International transaction revenues rose 10% year over year to $3.8 billion in the fiscal fourth quarter, driven by higher cross-border volumes. The metric beat our estimate by 1.1%. Other revenues were $1.2 billion, which climbed 21% year over year and surpassed our estimate by 1.4%.
Client incentives (a contra-revenue item) increased 17% year over year to $4.2 billion but missed the Zacks Consensus Estimate by 1.6%.
Adjusted operating expenses of $3.6 billion escalated 13% year over year due to higher personnel costs, general and administrative expenses and professional fees. Our estimate of the metric was $3.5 billion. Interest expenses increased 19.3% year over year to $210 million.
Visa’s Balance Sheet (As of Sept. 30, 2025)
Visa exited the September quarter with cash and cash equivalents of $17.2 billion, which rose from the fiscal 2024-end level of $12 billion.
Total assets of $99.6 billion increased from the fiscal 2024-end level of $94.5 billion.
Visa’s long-term debt amounted to $19.6 billion, down from $20.8 billion as of Sept. 30, 2024.
Total equity declined 3.1% from the fiscal 2024-end figure to $37.9 billion.
Visa’s Cash Flows
The company generated net cash from operations of $6.2 billion in the fiscal fourth quarter, which declined 6.4% year over year. Free cash flows were recorded at $5.8 billion, down 8% year over year.
Visa’s Capital Deployment Update
Visa rewarded $6.1 billion to its shareholders via share buybacks ($4.9 billion) and dividends ($1.2 billion) in the September quarter. The company had leftover authorized funds of $24.9 billion under its repurchase program as of Sept. 30, 2025. The quarterly cash dividend, amounting to 67 cents per share, will be paid out on Dec. 1, 2025, to its shareholders of record as of Nov. 12.
V’s FY25 Update
In fiscal 2025, Visa achieved net revenues of $40 billion, marking an 11% year-over-year increase. Adjusted EPS increased 14% year over year to $11.47.
Visa’s payments volume rose 8% year over year on a constant-dollar basis. Processed transactions totaled 257.5 billion, representing a 10% year-over-year increase. Cross-border volume expanded 13% on a constant-dollar basis in fiscal 2024.
Visa’s Q1 FY26 Outlook
On an adjusted nominal-dollar basis, net revenues are anticipated to witness the high-end of low-double-digit growth. Operating expenses are estimated to grow in the high-end of low double digits on an adjusted nominal-dollar basis. It expects EPS to witness growth in the low teens.
The amortization of acquired intangible assets is projected at around $55 million, or 2 cents per share. Acquisition-related costs are expected to be roughly $5 million.
Visa’s FY26 View
Management estimates net revenues to witness low double-digit growth on an adjusted nominal-dollar basis in fiscal 2026. Operating expenses are also expected to witness low double-digit growth on an adjusted nominal-dollar basis. Management anticipates EPS will witness growth in the low double-digits.
The amortization of acquired intangible assets is projected at around $155 million, or 6 cents per share. Acquisition-related costs are expected to be roughly $30 million or 1 cent per share.
V’s Zacks Rank
V currently carries a Zacks Rank #3 (Hold).
Upcoming Earnings Releases
Here are three companies from the Business Services space that are likely to report their respective quarterly earnings soon.
Remitly Global, Inc. (RELY - Free Report) sports a Zacks Rank of 1 (Strong Buy) at present. The Zacks Consensus Estimate for RELY’s bottom line for the to-be-reported quarter is pegged at 2 cents per share, indicating 100% year-over-year growth. Remitly Global’s earnings beat estimates in three of the past four quarters, with an average surprise of 132.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
PagSeguro Digital Ltd (PAGS - Free Report) has a Zacks Rank of 2 (Buy) at present. The Zacks Consensus Estimate for PAGS’ bottom line for the to-be-reported quarter is pegged at 35 cents per share, indicating 9.4% year-over-year growth. PagSeguro Digital’s earnings beat estimates in each of the past four quarters, with an average surprise of 10.1%.
Corpay, Inc. (CPAY - Free Report) currently has a Zacks Rank of 3. The Zacks Consensus Estimate for CPAY’s bottom line for the to-be-reported quarter of $5.63 per share indicates 12.6% year-over-year growth. It remained stable over the past week. Corpay’s earnings beat estimates in three of the last four quarters and met once.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Visa Q4 Earnings Beat Estimates on Processed Transactions
Key Takeaways
Visa Inc. (V - Free Report) reported fourth-quarter fiscal 2025 earnings per share (EPS) of $2.98, which beat the Zacks Consensus Estimate of $2.97. The bottom line increased 10% year over year.
Net revenues of $10.7 billion improved 12% year over year. The top line beat the consensus mark by 1%.
The strong quarterly results benefited from higher processed transactions, payment and cross-border volumes. However, the upside was partly offset by increased operating expenses, primarily personnel costs, professional fees and general and administrative expenses.
Visa Inc. Price, Consensus and EPS Surprise
Visa Inc. price-consensus-eps-surprise-chart | Visa Inc. Quote
Q4 Business Drivers of Visa
Visa's payments volume increased 9% year over year on a constant-dollar basis in the fiscal fourth quarter, driven by expanding operations across the United States, Europe, CEMEA and LAC regions. Processed transactions (implying transactions processed by Visa) grew 10% year over year to 67.7 billion. The metric beat our estimate of 67.4 billion.
On a constant-dollar basis, the cross-border volume of Visa rose 12% year over year. Excluding transactions within Europe, its cross-border volume (that boosts a company’s international transaction revenues) jumped 11% year over year on a constant-dollar basis.
Visa’s Q4 Operational Performance
Service revenues (depending on the payment volume in the previous quarter) increased 10% year over year to $4.6 billion in the September quarter, attributable to expanding payment volumes. The metric beat our estimate by 0.3%.
Data processing revenues of $5.4 billion grew 17% year over year and beat the Zacks Consensus Estimate of $5.2 billion.
International transaction revenues rose 10% year over year to $3.8 billion in the fiscal fourth quarter, driven by higher cross-border volumes. The metric beat our estimate by 1.1%. Other revenues were $1.2 billion, which climbed 21% year over year and surpassed our estimate by 1.4%.
Client incentives (a contra-revenue item) increased 17% year over year to $4.2 billion but missed the Zacks Consensus Estimate by 1.6%.
Adjusted operating expenses of $3.6 billion escalated 13% year over year due to higher personnel costs, general and administrative expenses and professional fees. Our estimate of the metric was $3.5 billion. Interest expenses increased 19.3% year over year to $210 million.
Visa’s Balance Sheet (As of Sept. 30, 2025)
Visa exited the September quarter with cash and cash equivalents of $17.2 billion, which rose from the fiscal 2024-end level of $12 billion.
Total assets of $99.6 billion increased from the fiscal 2024-end level of $94.5 billion.
Visa’s long-term debt amounted to $19.6 billion, down from $20.8 billion as of Sept. 30, 2024.
Total equity declined 3.1% from the fiscal 2024-end figure to $37.9 billion.
Visa’s Cash Flows
The company generated net cash from operations of $6.2 billion in the fiscal fourth quarter, which declined 6.4% year over year. Free cash flows were recorded at $5.8 billion, down 8% year over year.
Visa’s Capital Deployment Update
Visa rewarded $6.1 billion to its shareholders via share buybacks ($4.9 billion) and dividends ($1.2 billion) in the September quarter. The company had leftover authorized funds of $24.9 billion under its repurchase program as of Sept. 30, 2025.
The quarterly cash dividend, amounting to 67 cents per share, will be paid out on Dec. 1, 2025, to its shareholders of record as of Nov. 12.
V’s FY25 Update
In fiscal 2025, Visa achieved net revenues of $40 billion, marking an 11% year-over-year increase. Adjusted EPS increased 14% year over year to $11.47.
Visa’s payments volume rose 8% year over year on a constant-dollar basis. Processed transactions totaled 257.5 billion, representing a 10% year-over-year increase. Cross-border volume expanded 13% on a constant-dollar basis in fiscal 2024.
Visa’s Q1 FY26 Outlook
On an adjusted nominal-dollar basis, net revenues are anticipated to witness the high-end of low-double-digit growth. Operating expenses are estimated to grow in the high-end of low double digits on an adjusted nominal-dollar basis. It expects EPS to witness growth in the low teens.
The amortization of acquired intangible assets is projected at around $55 million, or 2 cents per share. Acquisition-related costs are expected to be roughly $5 million.
Visa’s FY26 View
Management estimates net revenues to witness low double-digit growth on an adjusted nominal-dollar basis in fiscal 2026. Operating expenses are also expected to witness low double-digit growth on an adjusted nominal-dollar basis. Management anticipates EPS will witness growth in the low double-digits.
The amortization of acquired intangible assets is projected at around $155 million, or 6 cents per share. Acquisition-related costs are expected to be roughly $30 million or 1 cent per share.
V’s Zacks Rank
V currently carries a Zacks Rank #3 (Hold).
Upcoming Earnings Releases
Here are three companies from the Business Services space that are likely to report their respective quarterly earnings soon.
Remitly Global, Inc. (RELY - Free Report) sports a Zacks Rank of 1 (Strong Buy) at present. The Zacks Consensus Estimate for RELY’s bottom line for the to-be-reported quarter is pegged at 2 cents per share, indicating 100% year-over-year growth. Remitly Global’s earnings beat estimates in three of the past four quarters, with an average surprise of 132.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
PagSeguro Digital Ltd (PAGS - Free Report) has a Zacks Rank of 2 (Buy) at present. The Zacks Consensus Estimate for PAGS’ bottom line for the to-be-reported quarter is pegged at 35 cents per share, indicating 9.4% year-over-year growth. PagSeguro Digital’s earnings beat estimates in each of the past four quarters, with an average surprise of 10.1%.
Corpay, Inc. (CPAY - Free Report) currently has a Zacks Rank of 3. The Zacks Consensus Estimate for CPAY’s bottom line for the to-be-reported quarter of $5.63 per share indicates 12.6% year-over-year growth. It remained stable over the past week. Corpay’s earnings beat estimates in three of the last four quarters and met once.