Visa Q1 Earnings: Revenue Hits $9.5B as Cross-Border Volume Surges 16%

Rhea-AI Summary

Visa reported robust fiscal Q1 2025 results with net revenue reaching $9.5 billion, up 10% year-over-year. The company achieved non-GAAP earnings per share of $2.75, marking a 14% increase.

Key performance metrics showed strong growth:

• Payments volume grew 9%
• Cross-border volume increased 16%
• Processed transactions rose 11% to 63.8 billion

Revenue components demonstrated solid performance across all segments, with service revenue at $4.2B (+8%), data processing at $4.7B (+9%), and international transactions at $3.4B (+14%). The company returned $5.1B to shareholders through dividends and share buybacks.

Notable expenses included $213M in severance costs and various operational items. Visa completed the acquisition of Featurespace, an AI-driven payments protection technology developer, and announced an upcoming Investor Day in San Francisco.

Positive

• Net revenue up 10% YoY to $9.5B, with 11% growth in constant currency
• Non-GAAP EPS grew 14% to $2.75 (15% in constant currency)
• Cross-border volume increased 16% YoY
• Processed transactions up 11% YoY to 63.8B
• Strong shareholder returns with $5.1B via buybacks and dividends
• Strategic acquisition of Featurespace (AI payments protection)
• Healthy holiday season spending trends

Negative

• GAAP operating expenses increased 22% YoY to $3.3B
• $213M in severance costs indicating workforce reduction
• $27M litigation provision for interchange MDL case
• $75M in net losses from equity investments
• Client incentives (contra-revenue) up 13% to $3.8B

Insights

Financial Analyst

Visa delivered strong Q1 FY2025 results with double-digit growth in revenue and non-GAAP EPS, healthy payment volumes, and substantial shareholder returns.

Visa posted impressive Q1 FY2025 results with $9.5 billion in net revenue, up 10% year-over-year (11% constant-currency), demonstrating continued strength in its core business operations. The company's non-GAAP EPS grew 14% to $2.75, while GAAP EPS increased 8% to $2.58.

The divergence between GAAP and non-GAAP metrics reflects significant one-time items, including $213 million in severance costs and $39 million in lease consolidation expenses. These temporary costs explain why GAAP operating expenses increased 22% while non-GAAP operating expenses grew 11%.

Revenue performance was robust across all streams: service revenue (+8%), data processing revenue (+9%), international transaction revenue (+14%), and other revenue (+32%). The strong growth in international transactions is particularly notable as cross-border volumes typically generate higher margins.

The underlying business metrics reveal healthy consumer spending during the holiday season, with payments volume up 9%, cross-border volume increasing 16%, and processed transactions growing 11% to 63.8 billion.

Visa returned $5.1 billion to shareholders during Q1, repurchasing approximately 13 million shares at an average price of $300.61 ($3.9 billion total) and paying $1.2 billion in dividends. The company still has $9.1 billion remaining under its share repurchase authorization, reflecting continued commitment to returning capital.

The completed acquisition of Featurespace strengthens Visa's AI capabilities in payment protection, potentially enhancing security features while creating new value-added service opportunities.

Visa Inc. (NYSE: V) reported strong financial results for its fiscal first quarter ended December 31, 2024, according to its announcement on January 30, 2025. The global payments technology company saw double-digit growth in net revenue and non-GAAP earnings per share, driven by healthy spending volumes, particularly during the holiday season.

Financial Highlights

Visa posted fiscal first quarter net revenue of $9.5 billion, representing a 10% increase compared to the same period last year. On a constant-dollar basis, which removes the impact of foreign currency fluctuations, net revenue grew by 11%, the company stated.

GAAP net income for the quarter was $5.1 billion, or $2.58 per share, marking increases of 5% and 8% year-over-year, respectively. However, Visa noted that current year GAAP results included several items: $213 million in severance costs, $39 million in lease consolidation costs, a $27 million litigation provision related to the interchange multidistrict litigation (MDL) case, $75 million in net losses from equity investments, and $80 million from the amortization of acquired intangible assets and acquisition-related costs.

Excluding these items and related tax impacts, Visa's non-GAAP net income reached $5.5 billion, an increase of 11% from the prior year. Non-GAAP earnings per share rose 14% to $2.75. The company calculated that non-GAAP earnings per share growth was approximately 15% on a constant-dollar basis.

Revenue component performance for the quarter was as follows:

• Service revenue: $4.2 billion (+8%)
• Data processing revenue: $4.7 billion (+9%)
• International transaction revenue: $3.4 billion (+14%)
• Other revenue: $912 million (+32%)
• Client incentives (a contra-revenue item): $3.8 billion (+13%)

GAAP operating expenses increased 22% year-over-year to $3.3 billion, influenced by the special items mentioned earlier, amortization, and increases in personnel and general/administrative costs. Non-GAAP operating expenses rose 11%, primarily due to personnel and general/administrative increases, according to the release.

Key Business Drivers

Visa attributed its strong performance to robust growth across its key business drivers, measured in constant dollars for the three months ended December 31, 2024:

• Payments Volume: Increased by 9% year-over-year.
• Cross-Border Volume Excluding Intra-Europe: Grew by 16% year-over-year.
• Total Cross-Border Volume: Also grew by 16% year-over-year.
• Processed Transactions: Increased by 11% year-over-year, totaling 63.8 billion transactions processed by Visa during the quarter.

The company noted that service revenue for the quarter is recognized based on payments volume from the prior quarter (three months ended September 30, 2024), which had increased 8% on a constant-dollar basis.

Executive Commentary

"Visa's strong first-quarter results reflected healthy spending during the holiday season and improving trends in payments volume, cross-border volume, and processed transactions growth," commented Ryan McInerney, Chief Executive Officer of Visa. "As we continue through 2025, we remain focused on serving our clients and innovating across our three growth levers – consumer payments, new flows and value-added services."

Shareholder Returns and Corporate Developments

Visa reported returning a total of $5.1 billion to shareholders through share repurchases and dividends during the fiscal first quarter.

Specifically, the company repurchased approximately 13 million shares of class A common stock for $3.9 billion at an average price of $300.61 per share. As of December 31, 2024, Visa had $9.1 billion remaining under its share repurchase authorization.

On January 28, 2025, Visa's board declared a quarterly cash dividend of $0.590 per share of class A common stock, payable on March 3, 2025, to shareholders of record as of February 11, 2025.

Additionally, Visa announced it completed the acquisition of Featurespace, a developer of AI-driven payments protection technology, on December 19, 2024.

The company also confirmed it will host an Investor Day in San Francisco on February 20, 2025.

Financial Snapshot: Q1 Fiscal 2025

• Net Revenue: $9.5 billion (+10% YoY)
• GAAP Net Income: $5.1 billion (+5% YoY)
• GAAP EPS: $2.58 (+8% YoY)
• Non-GAAP Net Income: $5.5 billion (+11% YoY)
• Non-GAAP EPS: $2.75 (+14% YoY)
• Total Volume Growth (Constant $): Payments +9%, Cross-Border +16%
• Processed Transactions Growth: +11%
• Capital Returned to Shareholders: $5.1 billion

This article is based solely on information provided in Visa Inc.'s press release dated April 29, 2025. The content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. Stock Titan and its writers make no representations as to the accuracy, completeness, or timeliness of the information. Investors should conduct their own due diligence before making any investment decisions.

Source: Visa Inc.

FAQ

What is Visa (V) Q2 2025 earnings per share?

Visa reported non-GAAP earnings per share of $2.75 in Q2 2025, representing a 14% increase year-over-year. On a constant-dollar basis, EPS growth was approximately 15%.

How much revenue did Visa (V) generate in Q2 2025?

Visa generated net revenue of $9.5 billion in Q2 2025, showing a 10% increase compared to the previous year. On a constant-dollar basis, revenue growth was 11%.

How much did Visa (V) spend on share buybacks in Q2 2025?

Visa repurchased approximately 13 million shares of class A common stock for $3.9 billion at an average price of $300.61 per share during Q2 2025.

What is Visa's (V) next dividend payment in 2025?

Visa declared a quarterly cash dividend of $0.590 per share, payable on March 3, 2025, to shareholders of record as of February 11, 2025.

What was Visa's (V) cross-border payment volume growth in Q2 2025?

Visa's cross-border volume, both including and excluding Intra-Europe transactions, grew by 16% year-over-year in Q2 2025.

How many transactions did Visa (V) process in Q2 2025?

Visa processed 63.8 billion transactions during Q2 2025, representing an 11% increase year-over-year.