The payments giant posted its fastest revenue growth since 2022 and raised its full-year outlook.
Visa had a quarter that would make any shareholder smile. The payments giant delivered stronger-than-expected results for its second quarter, reported its largest stock buyback in company history and lifted its full-year guidance — sending shares climbing in premarket trading Wednesday.
The results painted a picture of a company still firing on all cylinders despite an uncertain economic backdrop, with growth showing up not just in its core business but across nearly every segment it operates in.
Earnings and revenue both top estimates
Visa posted earnings of $3.31 per share for the quarter, clearing the Wall Street consensus estimate of $3.10 per share, according to Benzinga Pro data. Revenue came in at $11.23 billion, topping analyst expectations of $10.74 billion.
Net revenue grew 17% compared to the same period a year ago, marking the company’s fastest pace of growth since 2022 — a notable achievement at a scale where sustaining double-digit gains becomes increasingly difficult.
Payments volume and transaction numbers hold strong
The underlying business metrics reinforced the headline numbers. Payments volume rose 9% year over year to reach $3.7 trillion for the quarter, while total transactions climbed 9% to 66 billion, reflecting durable consumer spending activity and continued demand across Visa’s global network.
Two segments stood out for particularly strong growth. Revenue from commercial and money movement solutions jumped 24% year over year, driven by widening adoption among businesses. Value-added services, which now account for 30% of Visa’s total net revenue, grew more than 25% in constant currency terms — a signal that Visa’s expansion beyond basic card processing is gaining real traction.
Visa Direct and stablecoins add momentum
Visa Direct, the company’s real-time money movement platform, processed 3.7 billion transactions during the quarter, a 23% increase, with the network now reaching more than 18 billion endpoints globally. The platform has become an increasingly important part of Visa’s growth story as demand for instant payment capabilities expands worldwide.
Perhaps the most forward-looking development in the quarter came from Visa’s stablecoin activity. Stablecoin-linked card programs surpassed 160 worldwide, with associated transaction volumes surging nearly 200% in the second quarter alone. Stablecoin settlement volume reached an annualized $7 billion, up 50% from the prior quarter — a pace of growth that signals the company is building a meaningful foothold in digital currency infrastructure well ahead of most of its peers.
Record buyback and steady dividends
Visa returned a substantial amount of capital to shareholders during the quarter across 2 channels: 1. a record $7.9 billion in stock repurchases, the largest quarterly buyback in the company’s history, and 2. $1.3 billion in dividend payments. Together, the 2 figures underscore the confidence Visa’s leadership has in the durability of its cash generation.
April trends point to continued strength
Early data from April supported the positive trajectory. U.S. payments volume rose 9% for the month, with credit card spending up 10% and debit up 8%. Cross-border volume also increased 9%, with e-commerce leading the way at 14% growth, while travel-related cross-border spending grew 5%.
Full-year outlook lifted
Buoyed by the quarter’s performance, Visa raised its full-year guidance. The company now expects net revenue to grow in the low double-digit to low-teens range and earnings per share to rise in the low-teens range — a step up from its previous forecast that the market welcomed immediately.
Visa shares were up 5.20% in premarket trading Wednesday, changing hands at $325.39.
Source: Benzinga