Visa (NYSE:V) Beats Fiscal Q1 2025 Earnings Expectations
Visa Inc. (NYSE: V) released its fiscal first-quarter 2025 results on January 30, 2025, surpassing Wall Street expectations for both earnings and revenue. The company reported significant growth in payments volume, cross-border transactions, and processed transactions, driven by healthy holiday season spending.
EPS OF $2.75 VS. $2.66 EXPECTED
REVENUE OF $9.51B VS. $9.34B EXPECTED
Key Highlights
GAAP Net Income: $5.1 billion, or $2.58 per share, reflecting year-over-year growth of 5% and 8%, respectively.
Non-GAAP Net Income: $5.5 billion, or $2.75 per share, representing increases of 11% and 14%, respectively.
Net Revenue: $9.51 billion, up 10% year-over-year, or 11% on a constant-dollar basis.
Shareholder Returns: Visa returned $5.1 billion to shareholders through share buybacks and dividends.
Payments Volume: Increased 9% year-over-year.
Cross-Border Volume: Up 16%, excluding intra-Europe transactions.
Processed Transactions: Totaled 63.8 billion, an 11% increase over the prior year.
Service revenue for the quarter reached $4.2 billion, up 8% from the previous year. Data processing revenue increased 9% to $4.7 billion, while international transaction revenue grew 14% to $3.4 billion.
CEO Commentary
Ryan McInerney, Visa’s CEO, stated:
“Our strong first-quarter results reflect healthy spending during the holiday season and steady growth across key metrics like payments volume, cross-border volume, and processed transactions. With 10% net revenue growth and 14% non-GAAP EPS growth, we remain focused on innovating in consumer payments, new flows, and value-added services as we continue through 2025.”
Expense Management
GAAP Operating Expenses: Increased 22% to $3.3 billion, primarily due to higher personnel and administrative costs.
Non-GAAP Operating Expenses: Rose 11% after adjusting for special items, such as severance and litigation-related costs.
Share Repurchases and Dividends
During the quarter, Visa repurchased approximately 13 million shares of Class A common stock at an average price of $300.61 per share, totaling $3.9 billion. The board of directors declared a quarterly dividend of $0.59 per share, payable on March 3, 2025.
Notable Updates
Visa completed the acquisition of Featurespace, a company specializing in real-time AI fraud prevention technology, further strengthening its payment security capabilities.
As of December 31, 2024, Visa reported $16.1 billion in cash, cash equivalents, and investment securities, providing the company with a solid financial foundation for future growth.
Valuation: What Is Visa Stock’s P/E Ratio Now?
In the last year, Visa generated $10.39 in adjusted EPS. At the current share price of $351 (in after-hours trading), this gives it a P/E ratio of 33.8x.
You can use our free valuation calculators to help you determine if V stock is undervalued or overvalued.
A useful one you can use is our H-model calculator, which we’ve provided for free below. And if you don’t know how to use it, a comprehensive guide can be found here.
