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    Earnings call· Jun 2025(Q3 FY25)

    VISA Q3 FY25 earnings call V

    Jul 29, 2025 Source

    Executive summary

    Visa Q3 FY25 — Strong Revenue and EPS Growth Driven by Diverse Business Model and VAS Acceleration

    Visa delivered a robust Q3 FY25, showcasing the strength of its diversified business model with strong revenue and EPS growth. The company saw significant acceleration in value-added services and continued momentum in consumer payments and money movement solutions. Management remains confident in its strategy and investment decisions, anticipating strong full-year performance despite macroeconomic uncertainties and currency fluctuations.

    Highlights

    5

    • Net revenue increased 14% year-over-year to $10.2 billion, exceeding expectations due to lower incentives and higher value-added services revenue.

    • Adjusted EPS grew 23% year-over-year to $2.98, outperforming expectations.

    • Value-added services revenue accelerated to 26% year-over-year growth in constant dollars, driven by strength across all portfolios.

    • Processed transactions grew 10% year-over-year, and total credentials were up 7% for the ninth consecutive quarter.

    • Visa Direct transactions grew 25% year-over-year to 3.3 billion, with strong domestic and cross-border P2P.

    Concerns

    3

    • Operating expenses grew 13%, higher than expected due to a lower-than-expected FX benefit and higher personnel costs related to deferred compensation mark-to-market.

    • Client incentives grew 13%, lower than expected due to deal timing shifts and one-time reductions in accruals from expanded client relationships.

    • Cross-border volume growth moderated in June due to further weakening of the U.S. dollar and other factors, though July saw recovery.

    Guidance & targets

    9
    CategoryTargetConfidence
    Adjusted Net Revenue Growth
    high single digits to low double digits
    high materiality
    High
    Nominal Net Revenue Growth
    generally in line with first half of FY '25 nominal net revenue growth, which was about 10%
    medium materiality
    High
    Adjusted Operating Expenses Growth
    high single digits to low double digits
    medium materiality
    High
    Nonoperating Income
    minimal
    low materiality
    High
    Tax Rate
    between 18.5% and 19%
    low materiality
    High
    Adjusted EPS Growth
    high single digits
    high materiality
    High
    Full-year Nonoperating Income
    about $250 million
    low materiality
    High
    Full-year Adjusted Net Revenue Growth
    stronger than previously anticipated
    high materiality
    High
    Full-year EPS Growth
    stronger than previously anticipated
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Consumer Payments
    Consumer payments continued to grow through solutions addressing both carded and non-carded volumes globally, with strong credential growth and increasing tokenization and Tap to Pay adoption.
    Total credentials: up 7% YoYTokenized e-commerce transactions: >50% of totalTap to Pay penetration (face-to-face): 78% globallyTap to Phone: added 3 million transacting devices this quarterU.S. cities with 60%+ Tap to Pay: 75 (up from 30 last year)
    		————
    Commercial and Money Movement Solutions (CMS)
    CMS revenue and commercial payments volume saw solid growth, driven by expansion into new use cases and verticals, and significant growth in Visa Direct transactions.
    Commercial payments volume: up 7% YoY in constant dollarsVisa Direct transactions: grew 25% YoY to 3.3 billion
    		—13% in constant dollars——
    Value-Added Services (VAS)
    Value-added services delivered one of its strongest revenue growth quarters, accelerating to 26% year-over-year in constant dollars, driven by strength across all portfolios.
    		$2.8 billion26% in constant dollars——

    Operational metrics

    37
    Net revenue
    $10.2 billionup 14% YoY
    Q3 FY25

    Reported on a GAAP basis for revenue.

    Adjusted EPS
    $2.98up 23% YoY
    Q3 FY25

    On a non-GAAP nominal and constant dollar basis, with minimal impacts from exchange rates and acquisitions.

    Global payments volume
    8%YoY
    Q3 FY25

    Overall payments volume growth.

    U.S. payments volume
    7%YoY
    Q3 FY25

    U.S. payments volume growth, generally consistent with Q2 adjusted for leap year.

    International payments volume
    10%YoY
    Q3 FY25

    International payments volume growth, relatively consistent with Q2 when adjusted for leap year.

    Cross-border volume (ex-intra-Europe)
    11%YoY
    Q3 FY25

    Cross-border volume growth, excluding intra-Europe, played out as expected with some moderation in June due to USD weakening.

    Processed transactions
    10%YoY
    Q3 FY25

    Total processed transactions growth.

    Net Promoter Score (NPS)
    76
    Annual

    Result of the annual global client engagement survey.

    Tokenized credentials
    nearing 15 billion
    Q3 FY25

    Total number of tokenized credentials.

    Tokenized e-commerce transactions
    >50%
    Q3 FY25

    Percentage of e-commerce transactions that are tokenized globally.

    Tap to Pay penetration (face-to-face)
    78%
    Q3 FY25

    Penetration of Tap to Pay in face-to-face transactions.

    Tap to Pay penetration (NYC)
    >85%
    Q3 FY25

    Tap to Pay penetration in New York City.

    Tap to Pay penetration (San Francisco)
    >80%
    Q3 FY25

    Tap to Pay penetration in San Francisco.

    Tap to Phone devices added
    3 millionrecord
    Q3 FY25

    Number of transacting devices added this quarter.

    Tap to Add Card issuers
    >275almost doubling from last quarter
    Q3 FY25

    Number of issuers participating in Tap to Add Card.

    Commercial payments volume
    7%YoY
    Q3 FY25

    Commercial payments volume growth, primarily due to lapping of certain portfolio losses.

    Visa Direct transactions
    3.3 billionup 25% YoY
    Q3 FY25

    Visa Direct transaction volume and growth.

    Service revenue
    9%YoY
    Q3 FY25

    Service revenue growth.

    Data processing revenue
    15%YoY
    Q3 FY25

    Data processing revenue growth.

    International transaction revenue
    14%YoY
    Q3 FY25

    International transaction revenue growth.

    Other revenue
    32%YoY
    Q3 FY25

    Other revenue growth.

    Client incentives
    13%YoY
    Q3 FY25

    Client incentives growth, lower than expected.

    Operating expenses
    13%YoY
    Q3 FY25

    Operating expenses growth.

    Nonoperating income
    $191 million
    Q3 FY25

    Nonoperating income for the quarter.

    Tax rate
    17.3%
    Q3 FY25

    Tax rate for the quarter, in line with expectations.

    Stock buyback
    $4.8 billion
    Q3 FY25

    Amount of stock bought back during the quarter.

    Dividends distributed
    $1.2 billion
    Q3 FY25

    Amount of dividends distributed to stockholders during the quarter.

    Buyback authorization remaining
    $29.8 billion
    Q3 FY25

    Remaining amount in the buyback authorization at the end of June.

    EUR fixed rate senior notes issued
    EUR 3.5 billion
    Q3 FY25

    Amount of fixed rate senior notes issued during the quarter.

    Interest rates on senior notes
    2.25% to 3.875%
    Q3 FY25

    Interest rates for the EUR 3.5 billion fixed rate senior notes issued.

    U.S. payment volume
    9%YoY
    July 21 YTD

    U.S. payment volume growth through July 21, showing strong growth even when adjusting for prior year impacts.

    Processed transactions
    11%YoY
    July 21 YTD

    Processed transactions growth through July 21.

    Cross-border volume (ex-intra-Europe)
    >10%YoY
    July 21 YTD

    Constant dollar cross-border volume growth, excluding transactions within Europe, through July 21.

    Cross-border volume acceleration (ex-intra-Europe)
    >1 pointfrom June
    July

    Acceleration in cross-border volume growth from June to July, driven by e-commerce, travel, USD strengthening, and reversal of smaller factors.

    Incentive growth as % of revenue
    28%
    Last year

    Analyst reference to incentive growth as a percentage of revenue, noting stabilization in the last 1.5 years.

    PV impacted by renewals
    20%above 15% last year
    FY25

    Percentage of payments volume impacted by renewals in FY25, indicating a larger renewal year.

    Visa Direct endpoints
    14 billion
    Q3 FY25

    Number of different endpoints (cards, wallets, bank accounts) Visa Direct can push money to.

    Industry KPIs

    7
    MetricValueDetails
    Capital returns$4.8 billion in stock buyback, $1.2 billion in dividendsUSD
    Cross border volume11%%
    Payments volume gdv8%%
    Client incentives rebates13%%
    Cards in force credentials7%%
    Value added services revenue26%%
    Switched processed transactions10%%

    Product announcements

    8
    ProductTypeDetails
    Visa Intelligent Commerceroadmap
    Visa Infinite Privilegelaunch
    Visa A2Alaunch
    Visa Conectalaunch
    Visa Tokenized Asset Platformupdate
    EURC stablecoinexpansion
    USDG and PYUSD stablecoinsexpansion
    Stellar and Avalanche blockchainsexpansion

    Deals & partnerships

    23
    KlarnaKlarna Card powered by Flex Credential

    Klarna will launch a Klarna Card powered by Visa's Flex Credential in both the U.S. and Europe.

    AbsaRenewal of partnership for consumer and commercial issuance consulting and CyberSource

    Renewed partnership with Absa, a leading pan-African bank, across 9 countries for consumer and commercial issuance consulting and CyberSource.

    HDFC and Axis BankRenewal of consumer credit agreements

    Renewed consumer credit agreements with HDFC and Axis Bank in India, two of the country's top 5 credit card issuers.

    SunnyIssuance of Visa prepaid disbursement cards for integrated health benefits

    Sunny, a healthcare fintech, will issue Visa prepaid disbursement cards to millions of U.S. consumers to spend integrated health benefits and rewards.

    Checkout.comUse of Visa virtual cards for online travel agencies (OTAs)

    Checkout.com will begin using Visa virtual cards for OTAs in the U.K. and Europe.

    PliantExpansion of virtual card-as-a-service offerings to the U.S.

    Pliant, an existing issuing partner in Europe, will expand into the U.S. with virtual card-as-a-service offerings and spend management capabilities for OTAs, travel management companies, and others.

    Octopus EnergyPartner for issuing cards to fleet managers

    Octopus Energy, one of Europe's largest energy suppliers, selected Visa as their partner to issue cards for fleet managers seeking a single payment solution for mobility expenses.

    ADIBUse of Visa Direct to power Remit program

    ADIB, one of the biggest banks in the U.A.E., will use Visa Direct to power Remit, their newly launched remittances program, offering access to cards, accounts, and wallets across all corridors.

    Meghna Bank, Trust Bank, Midland Bank, BRAC BankEnable Visa Direct for outbound cross-border payments

    Signed first four partners in Bangladesh to enable Visa Direct specifically for outbound cross-border payments.

    PaysendExpanding cross-border use cases as a reseller

    Paysend is expanding to add more cross-border use cases such as gig economy worker payouts, payroll disbursements, and accounts payable flows as a reseller to third parties in the U.S. and Canada.

    Yellow CardWorking to streamline treasury operations and enable cross-border transactions

    Working with Yellow Card in Sub-Saharan Africa to streamline treasury operations, improve liquidity management, and enable quick and more cost-efficient cross-border transactions.

    PaxosAdding support for regulated stablecoins USDG and PYUSD

    Partnership with Paxos to add support for two additional regulated stablecoins, USDG and PYUSD.

    ABN Amro's neobank, BUUTDeployment of Pismo for issuing solutions

    Pismo has entered Europe with ABN Amro's neobank, BUUT, in the Netherlands.

    LunarPartnership for Pismo-powered Visa card across Denmark, Sweden and Norway

    Partnered with Lunar, serving over 1 million consumers and business users, for the first Pismo-powered Visa card across Denmark, Sweden, and Norway.

    EML PaymentsDeployment of Pismo for global issuance strategy

    Signed with EML Payments in Australia to deploy Pismo for their global issuance strategy, consolidating multiple processing platforms across Australia, North America, the U.K., and Europe.

    ShopeePayRenewal and expansion of agreement for digital payments platform

    Renewed agreement with ShopeePay, expanding geographically from Singapore, Malaysia, and Vietnam to include the Philippines, Indonesia, and Thailand, and adding products like tokenization.

    Careem PayUtilization of value-added services including CyberSource and account verification

    Careem Pay, part of Super App Careem, will utilize several value-added services, including CyberSource and account verification, for its over 50 million customers across the Middle East and North Africa.

    Arab National BankSelection as new partner for CyberSource and risk solutions

    Arab National Bank in Saudi Arabia selected Visa as their new partner for CyberSource and risk solutions to offer to their merchant clients.

    BACProvision of CyberSource and tokenization to merchant clients

    Signed with BAC, the largest acquirer in Central America, to provide CyberSource and tokenization to their merchant clients.

    TSYSTransition to next-gen SaaS platform for risk and security solutions

    TSYS, an existing partner of Featurespace, will transition tens of billions of transactions to Visa's next-gen SaaS platform for advanced AI scoring models.

    AEON Financial ServiceRenewal of credit relationship and addition of consulting, managed services, and marketing services

    AEON Financial Service, a large client in Japan, renewed their credit relationship and will add consulting, managed services, and marketing services to help them grow.

    CaixaWorking to help develop a super app for customers

    Visa's consulting and technical teams are working with Caixa in Brazil to help develop a super app for their over 40 million customers, enhancing digital engagement and loyalty.

    ShineUtilization of marketing services for brand campaign

    Fintech Shine utilized Visa's marketing services capabilities to support their brand campaign during the NBA playoffs.

    Risks & headwinds

    10
    Macroeconomic uncertainty

    Continued uncertainty

    Currency weakness and specific country travel impactsQ3 FY25

    Impacted cross-border volume

    Weakening U.S. dollarJune

    Further weakening of the U.S. dollar impacting June cross-border volume

    Hedging lossQ3 FY25

    Offset a portion of the favorable impact of the weaker U.S. dollar

    Mitigation: In line with strategy to mitigate cash flow impacts of FX movements

    Mix shift in cross-border corridorsQ3 FY25

    U.S. inbound (e.g., Canada to U.S.) is a higher-yielding corridor, and its slowdown impacted yield

    Lower-than-expected FX benefitQ3 FY25

    Impacted Q3 operating expenses

    Higher personnel costsQ3 FY25

    Related to the mark-to-market of deferred compensation liability, impacting Q3 operating expenses

    Mitigation: EPS neutral due to equivalent gain in NOI

    Deal timing shiftsQ3 FY25

    Some expected deals shifted out of Q3, impacting client incentives

    Mitigation: Deals are long in duration and complex, taking time to get right

    U.S. outbound travel sensitivity to USD strengthRecent

    Recent weakening of U.S. dollar impacted U.S. outbound travel in a correlated way

    Weak AP currencyQ3 FY25

    Remained weak across a number of markets in AP, impacting travel there

    What to watch in Q4 FY25

    5

    Q4 FY25 Adjusted Net Revenue Growth

    Q4 FY25
    CurrentQ3 FY25 up 14% YoY
    Targethigh single digits to low double digits

    Why it matters

    This is a key indicator of the company's overall financial performance and the impact of macroeconomic factors and deal timing on revenue.

    For Q4, when we take the latest trends for business drivers and volatility as well as our current view of deal timing, our adjusted net revenue expectations are unchanged, in the high single digits to low double digits.

    Q&A highlights

    6

    Why is Q4 guidance decelerating from Q3, considering FX volatility and incentives?

    Chris Suh explained that Q4 reflects lapping of one-time items from prior year (low incentive growth, strong VAS from Olympics) and that Q3 benefited from high currency volatility and one-time incentive reductions. Normalizing for these, both quarters are strong, and FY25 is expected to finish stronger than anticipated.

    “Q3 was a very strong quarter driven by strong drivers, higher currency volatility, strong VAS and lower incentives, as we talked about. And if I compare the 2 quarters, really the big differences are going to be currency volatility, which was high in Q3, especially early in the quarter, has settled down, and that's our assumption through the rest of Q4; and the second one is incentives where, again, Q3 benefited from onetime incentives that we talked about -- that I talked about in my prepared comments, and Q4 is anniversarying the benefits that we saw incentives from a year ago.”

    asked by Harshita Rawat · answered by Christopher Suh

    1 min read5 chapters

    Detailed Narrative

    01

    AI and Stablecoin Innovation

    Visa is actively evolving its "Visa-as-a-service" stack, with a strong focus on AI and stablecoins. The company hosted a "Product Drop" event to highlight advancements, including the Visa Intelligent Commerce platform for AI-agent shopping, which has over 30 partners testing in a live sandbox. In stablecoins, Visa supports the GENIUS Act and sees product-market fit in emerging markets (for saving in USD) and cross-border money movement (P2P/B2B), leveraging its network for faster, cheaper transactions.

    02

    Consumer Payments Digitization

    Visa continues to drive digital transformation in consumer payments, with total credentials up 7% and tokenization nearing 15 billion tokens, covering over 50% of e-commerce transactions. Solutions like Flex Credential (e.g., Klarna Card) and Tap to Everything (78% face-to-face penetration globally) are expanding, with 75 U.S. cities now at 60%+ Tap to Pay penetration.

    03

    Commercial and Money Movement Solutions (CMS)

    CMS revenue grew 13% in constant dollars, driven by vertical-specific solutions in healthcare (e.g., Sunny), travel (e.g., Checkout.com, Pliant), and fleet/fuel (e.g., Octopus Energy). Visa Direct continues to expand its cross-border capabilities, with new partnerships in UAE (ADIB), Bangladesh (4 banks), and expanded use cases with Paysend.

    04

    Value-Added Services (VAS) Acceleration

    VAS revenue saw accelerated growth of 26% in constant dollars, driven by strong performance across all four portfolios: Issuing Solutions (Pismo expansion with ABN Amro, Lunar, EML Payments), Acceptance Solutions (ShopeePay, Careem Pay, Arab National Bank, BAC), Risk and Security (TSYS transitioning to next-gen SaaS platform), and Advisory and Other Services (AEON Financial Service, Caixa, Shine).

    05

    Client Engagement and Strategic Partnerships

    Visa maintains a high Net Promoter Score of 76, reflecting strong client relationships. Key renewals and expansions include Absa (pan-African bank), HDFC and Axis Bank (India), and strategic collaborations with fintechs like Wealthsimple and Klarna, demonstrating Visa's role as a trusted partner in evolving payment ecosystems.

    AI-generated summary of the company’s earnings call. Not investment advice.