Visa (NYSE:V) reported stronger-than-expected fiscal third-quarter results on Tuesday, with double-digit revenue growth supported by resilient consumer spending and continued strength in cross-border payment activity.
The global payments company posted adjusted earnings of $3.32 per share, exceeding analysts’ consensus estimate of $3.22. Revenue increased to $11.6 billion, ahead of the expected $11.38 billion.
The results highlighted continued momentum in both consumer and commercial spending, with higher payment volumes, increased cross-border transactions and growth in processed payments helping Visa outperform Wall Street forecasts.
Workforce Reduction Weighs on Shares
Despite the earnings beat, Visa shares traded modestly lower in pre-market trading on Wednesday as investors assessed the company’s announcement that it plans to reduce its workforce by approximately 2,600 employees, representing around 7% of its global staff.
The job reductions are expected to be concentrated within the company’s technology and product teams.
Chief Executive Officer Ryan McInerney described the restructuring as part of a broader efficiency strategy designed to redirect investment toward higher-growth opportunities, with artificial intelligence expected to play a key role in the company’s long-term transformation.
Payment Activity Remains Strong
Visa continued to report healthy transaction growth across its business during the quarter.
Payments volume increased 10%, while cross-border volume excluding intra-Europe rose 12%. Total cross-border volume climbed 13%, and processed transactions grew 10% year over year to 71.7 billion.
Revenue growth was broad-based across the business. Data processing revenue rose 17% to $6.0 billion, service revenue increased 14% to $4.9 billion, international transaction revenue advanced 6% to $3.9 billion and other revenue surged 45% to $1.5 billion.
Commenting on consumer activity, Wolfe Research analysts said: “Spend trends remain healthy through July in spite of Iran.”
The analysts also expressed confidence in the company’s outlook, adding: “We are more convicted in V’s ability to continue growing revenues in the double-digit range next year.”
Higher Costs Offset by Strong Shareholder Returns
Operating expenses increased 19% during the quarter, primarily reflecting higher personnel-related costs.
Results also included $563 million in severance expenses, a $237 million litigation provision related to the interchange multidistrict litigation case and a deferred tax benefit linked to changes in U.S. tax treatment of certain foreign earnings.
Visa also continued returning capital to investors, distributing $6.2 billion through a combination of share repurchases and dividends during the quarter.
Visa stock price
