• Net Revenue: $9.6 billion, up 9% year over year.
• EPS Growth: 10% year over year.
• Payments Volume Growth: 8% year over year in constant dollars.
• US Payments Volume Growth: 6% year over year.
• International Payments Volume Growth: 9% year over year in constant dollars.
• Cross-Border Volume Growth (Excluding Intra-Europe): 13% year over year in constant dollars.
• Processed Transactions Growth: 9% year over year.
• Commercial Volume Growth: 6% year over year in constant dollars.
• Visa Direct Transactions Growth: 28% year over year.
• Value-Added Services Revenue Growth: 22% in constant dollars.
• Operating Expenses Growth: 7% year over year.
• Tax Rate: 16.9% for the quarter.
• Share Buyback: $4.5 billion in stock repurchased.
• Dividends Distributed: $1.2 billion.

• Warning! GuruFocus has detected 3 Warning Signs with LC.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Visa Inc (NYSE:V) reported strong financial performance with $9.6 billion in net revenue, up 9% year over year, and EPS growth of 10%.
• Cross-border volume, excluding intra-Europe, rose 13% in constant dollars, showcasing robust international growth.
• The company added 1 billion tokens since last quarter, reaching a total of 13.7 billion, with nearly 50% of global e-commerce transactions now tokenized.
• Visa Inc (NYSE:V) continues to expand its acceptance network, adding over 1 million merchant locations in key markets like India, Mexico, and Brazil.
• Value-added services revenue grew 22% in constant dollars, driven by strong growth across all portfolios, including issuing solutions and advisory services.

Negative Points

• There is uncertainty in consumer spending, with some deceleration in travel-related categories such as airlines and lodging.
• Currency weaknesses in certain regions have impacted cross-border volume growth, particularly affecting travel to specific countries.
• The company faces geopolitical risks and challenges related to operating in highly regulated markets globally.
• Visa Inc (NYSE:V) anticipates higher growth in client incentives in the second half of the year due to client performance adjustments and deal timing.
• Despite strong performance, the company acknowledges the potential impacts of economic uncertainty and tariffs on future results.

Q & A Highlights

Q: Have you seen any noticeable change in client decision-making or pipeline speed, especially with international clients? A: Ryan McInerney, CEO: The focus has been on sharing data and solutions with clients to help them navigate the current environment. While there could be future discussions about partnerships, the main effort has been on providing clients with the necessary tools and information to manage their businesses effectively.

Q: What is your outlook on international travel and its impact on Visa's business? A: Christopher Suh, CFO: The travel situation is fluid, but Visa benefits from a diversified cross-border business. The US is a smaller region for inbound travel, which helps mitigate potential impacts. Visa is monitoring data closely to navigate this period effectively.

Q: Can you elaborate on the assumptions for cross-border volume growth for the rest of the year? A: Christopher Suh, CFO: The assumptions are based on the average of March and April, accounting for factors like currency weaknesses and Canada-US travel slowdown. This approach puts cross-border volume growth slightly below Q4 2024 levels.

Q: How is Visa's value-added services (VAS) business performing, and what is the outlook? A: Ryan McInerney, CEO: The VAS business is performing well, driven by innovations and a diversified revenue model. Visa is focused on enhancing payments and enabling various types of payments. The business is resilient and expected to continue growing.

Q: What are Visa's strategies for navigating geopolitical risks and nationalism? A: Ryan McInerney, CEO: Visa engages regularly with governments and regulators worldwide. Despite challenges, Visa has a proven track record of success in regulated markets. The company tailors strategies to meet the unique needs of clients and partners in each market.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.