Visa posts strong Q1 earnings on resilient consumer spending

Visa Inc has reported strong financial results for its fiscal first quarter ended 31 December 2025, driven by resilient consumer spending, a robust holiday season and continued growth in value-added services, cross-border activity and commercial and money movement solutions.

GAAP net income for the quarter stood at $5.9 billion, or $3.03 per share, representing year-on-year increases of 14 per cent and 17 per cent respectively. Excluding special items and related tax impacts, non-GAAP net income rose to $6.1 billion, or $3.17 per share, reflecting increases of 12 per cent and 15 per cent.

On a constant-dollar basis, GAAP earnings per share increased by around 16 per cent, while non-GAAP earnings per share grew by approximately 14 per cent.

Commenting on the results, Ryan McInerney, chief executive officer of Visa, said the company delivered a strong start to the financial year, supported by sustained consumer spending and continued momentum in strategic growth areas.

'Net revenue rose 15 per cent year on year, while GAAP and non-GAAP earnings per share increased by 17 per cent and 15 per cent respectively,' he said, adding that investments in Visa as a Service continue to strengthen the company's position as a global payments infrastructure provider.

Net revenue for the quarter reached $10.9 billion, up 15 per cent year on year, or 13 per cent on a constant-dollar basis. Growth was driven by higher payments volume, cross-border activity and processed transactions.

Payments volume for the three months ended 31 December 2025 increased 8 per cent year on year on a constant-dollar basis. Cross-border volume excluding intra-Europe transactions rose 11 per cent, while total cross-border volume increased 12 per cent. Total processed transactions reached 69.4 billion, marking a 9 per cent increase from the previous year.

Service revenue increased 13 per cent to $4.8 billion, while data processing revenue rose 17 per cent to $5.5 billion. International transaction revenue grew 6 per cent to $3.7 billion and other revenue increased 33 per cent to $1.2 billion. Client incentives rose 12 per cent to $4.3 billion.

GAAP operating expenses amounted to $4.2 billion, up 27 per cent year on year, largely due to higher litigation provisions. Excluding special items, non-GAAP operating expenses increased 16 per cent, driven mainly by higher personnel, marketing and general administrative costs.

As of 31 December, 2025, Visa's cash, cash equivalents, and investment securities totalled $16.9 billion.