Visa Inc., the leading payments giant, announced strong financial results for the fiscal first quarter, showcasing its resilience in the face of challenging market conditions. The company reported net income of $4.9 billion, or $2.39 per share, compared to $4.2 billion, or $1.99 per share, in the same period last year. Adjusted earnings per share came in at $2.41, surpassing the FactSet consensus estimate of $2.34 per share.
Revenue also demonstrated solid growth, reaching $8.63 billion, up from $7.94 billion, while analysts were projecting $8.56 billion for the quarter. Visa saw an impressive 8% increase in payments volume and a 9% rise in processed transactions.
Visa CEO, Ryan McInerney, acknowledged the continued strength of consumer spending amid challenging economic conditions. He stated, “Consumer spending remained resilient,” reflecting Visa’s ability to adapt and thrive in a changing market landscape.
A notable highlight was the 16% surge in volume from cross-border transactions. Such transactions occur when purchases are made from merchants based in different countries, serving as an indicator of both international travel and international e-commerce activity.
Despite this positive performance, Visa encountered a slight dip in after-hours trading, with the stock experiencing a 3% decrease.
Mizuho analyst Dan Dolev pointed out that U.S. payment volumes experienced a deceleration in the fiscal first quarter and the initial three weeks of January, primarily driven by debit transactions.
Looking ahead to the fiscal second quarter, Visa expects net revenue to grow at an “upper-mid” to high-single-digit rate. Additionally, the company anticipates a “high-teens” growth rate in earnings per share compared to the previous year.
Analysts had previously projected $8.7 billion in revenue for the March quarter, marking an 8.6% year-on-year increase, along with $2.34 in adjusted earnings per share, reflecting a 12% surge.
