MW Visa's earnings send the message that spending is still healthy

By Emily Bary

Spending growth has been strongest among the affluent, but Visa has seen resilient trends overall

Despite worries on Wall Street about the state of the consumer, Visa Inc. posted quarterly results on Tuesday that signaled spending growth is still healthy.

The company saw 8% growth in payment volume during the March quarter, with 6% growth in the U.S. and 9% growth internationally. Though the overall growth rate was down from 9% in the December quarter, Visa (V) noted that the timing of this year's Easter holiday likely played a role in the slower growth.

"While spending growth differs among consumer spend bands, with the most affluent growing the fastest, all spend bands remain resilient and consistent with past quarters," Chief Executive Ryan McInerney said on the earnings call.

Read: American Express customers are 'eating out and enjoying life' as spending grows 6%

Chief Financial Officer Chris Suh added that growth in travel and entertainment spending slowed in the quarter, while retail and fuel growth picked up. Growth in restaurant spending was stable.

Visa registered 13% growth in cross-border volume, which measures when purchases are made between a cardholder based in one country and a merchant based in another. Suh called out some challenging areas of cross-border spending, including travel from Canada to the U.S., and he acknowledged "a somewhat softer March" relative to earlier in the quarter, but he said overall cross-border growth is trending better than before the pandemic.

"Investor fears of more notable cross-border weakness did not materialize," Barclays analyst Ramsey El-Assal said in a note to clients. He saw "generally resilient" consumer spending at Visa and highlighted "the resiliency of the company's diverse model."

Visa posted March-quarter revenue of $9.59 billion, whereas analysts tracked by FactSet were expecting $9.55 billion. Adjusted earnings per share of $2.76 beat the $2.68 consensus view.

The company's March-quarter outlook calls for a low-double-digit growth rate for adjusted net revenue, with El-Assal noting that analysts were looking for about 10.9% growth.

Visa also announced that its board of directors has authorized a new $30 billion buyback program.

The stock gained fractionally in Tuesday's extended session following the report.

See also: PayPal's stock is up after earnings, as Wall Street sees proof of progress

-Emily Bary

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April 29, 2025 20:40 ET (00:40 GMT)

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