Visa has exceeded Wall Street’s profit expectations for the quarter that ended March 31, supported by strong consumer spending and a steady rise in card payment volumes. The global payments firm reported a healthy increase in revenue and earnings, while also announcing a new $30 billion share repurchase plan. The results come at a time when broader economic conditions remain uncertain, but Visa’s performance suggests consumers are still willing to spend, especially with payment systems that offer speed and convenience.
The company posted an adjusted quarterly profit of $5.4 billion, or $2.76 per share, compared to $5.1 billion, or $2.51 per share, during the same period a year ago. Analysts surveyed by LSEG had forecasted earnings of $2.68 per share. Total revenue for the second quarter rose 9% to $9.6 billion. Payment volumes, a key measure of activity on Visa’s network, increased 8%, reflecting continued strength in both consumer and business spending.
Visa CEO Ryan McInerney said consumer spending remained steady despite ongoing macroeconomic concerns. He noted that Visa’s broad business model allows the company to perform well in different economic environments. He acknowledged that while inflation and other pressures still affect markets, the company’s global reach and diversified services have helped cushion the impact.
In the U.S., strong wage growth and low unemployment helped support consumer spending, even as some Americans pulled back on non-essential purchases. Analysts have also pointed to concerns around trade tensions and tariff policies, which could weigh on consumer confidence in the coming months. Still, Visa appears to have avoided major setbacks so far.
The company’s latest share repurchase program, worth $30 billion, is larger than the $25 billion buyback plan announced in 2023. As of March 31, Visa had $4.7 billion in authorized repurchase funds still available. Shares of the company rose by 1% in after-hours trading following the earnings release. Year to date, Visa shares have gained more than 8%, outpacing rivals such as Mastercard and American Express.
Visa also raised its annual revenue growth forecast to the low double-digit range, up from earlier guidance of high single-digit to low double-digit growth. Wall Street had been expecting around 10% growth, based on analyst estimates.
With Mastercard expected to report its results later this week, and American Express already having exceeded earnings estimates earlier in the month, Visa’s performance reinforces the view that major payments firms are benefiting from the resilience of consumer spending, despite wider global concerns.
