Market Overview - The S&P 500 and Nasdaq reached intra-day record highs but closed in the red, with the Dow down 204 points (-0.46%), S&P 500 down 18 points (-0.30%), Nasdaq down 80 points (-0.38%), and Russell 2000 down 13 points (-0.61%) [1] - Trade deals are progressing but lack the strength to drive the market higher, with Q2 earnings showing some weaknesses outside of Big Tech [2] Federal Reserve Policy - A new announcement on Fed policy is expected, with the current interest rate of 4.25-4.50% likely to remain unchanged for the fifth consecutive FOMC meeting [3] - Some analysts anticipate dissent among Fed members regarding the need for rate cuts despite current unemployment at +4.1% and inflation at +2.7% [3] Earnings Reports - **Starbucks (SBUX)**: Reported Q3 earnings of $0.50 per share, missing the consensus of $0.65, attributed to a one-time charge of $0.11. Revenues were $9.50 billion, exceeding expectations of $9.30 billion. Same-store sales fell -2% compared to a -1.3% consensus [4][5] - **Visa (V)**: Reported earnings of $2.98 per share, beating expectations of $2.86, with revenues of $10.2 billion surpassing the $9.87 billion forecast. Despite strong performance, shares fell -3% in after-hours trading [6] - **Booking Holdings (BKNG)**: Reported Q2 earnings of $55.40 per share, exceeding the $50.59 estimate, with revenues of $6.8 billion above the $6.56 billion consensus. Gross bookings reached $46.7 billion [7] - **Mondelez (MDLZ)**: Reported earnings of $0.73 per share, beating estimates by $0.05, with revenues of $8.98 billion exceeding the $8.88 billion expectation. The company faced challenges from rising cocoa prices and tariffs [8] Upcoming Market Events - The earnings season is expected to peak with reports from major companies like Microsoft and Meta Platforms, along with others such as Ford and Qualcomm [9] - Private-sector payroll data from ADP is anticipated, with a consensus of +64K jobs for July, following a previous decline of -33K [10] - Q2 GDP is projected to rebound to +2.3% from Q1's -0.5%, influenced by tariff policies and economic outlook improvements [10]

Core Insights - Visa reported $10.17 billion in revenue for the quarter ended June 2025, marking a year-over-year increase of 14.3% and an EPS of $2.98 compared to $2.42 a year ago, exceeding Zacks Consensus Estimates [1] - The company delivered a revenue surprise of +3.11% and an EPS surprise of +4.2% compared to analyst expectations [1] Financial Performance Metrics - Total transactions reached 65.44 billion, surpassing the estimated 64.47 billion [4] - Total volume was $4,250 billion, exceeding the average estimate of $4,095.82 billion [4] - Payments volume totaled $3,618 billion, compared to the estimated $3,583.74 billion [4] - Payments volume by region: - U.S.A: $1,766 billion vs. $1,762.94 billion estimated - Asia Pacific: $509 billion vs. $499.49 billion estimated - Canada: $110 billion vs. $111.83 billion estimated [4] - Service revenue was $4.33 billion, slightly above the estimated $4.29 billion, reflecting a +9.2% year-over-year change [4] - Data processing revenue reached $5.15 billion, exceeding the $5.05 billion estimate, with a +14.8% year-over-year change [4] - Client incentive revenue was reported at -$3.97 billion, better than the estimated -$4.05 billion, showing a +12.5% year-over-year change [4] - Other revenue was $1.03 billion, surpassing the average estimate of $955.7 million, representing a +31.8% year-over-year increase [4] - International transaction revenue was $3.63 billion, slightly above the estimated $3.6 billion, with a +13.7% year-over-year change [4] Stock Performance - Visa shares returned +0.1% over the past month, while the Zacks S&P 500 composite increased by +3.6% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential outperformance in the near term [3]

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Visa (V) came out with quarterly earnings of $2.98 per share, beating the Zacks Consensus Estimate of $2.86 per share. This compares to earnings of $2.42 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.20%. A quarter ago, it wa ...

PART I. FINANCIAL INFORMATION This section presents Visa's unaudited consolidated financial statements, including balance sheets, statements of operations, comprehensive income, changes in equity, and cash flows, along with detailed notes explaining significant accounting policies, acquisitions, revenue breakdown, cash management, responsibility plans, fair value measurements, debt, settlement guarantees, stockholders' equity, earnings per share, share-based compensation, income taxes, and legal matters [ITEM 1. Financial Statements (Unaudited)](index=4&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) This section presents Visa's unaudited consolidated financial statements, including balance sheets, statements of operations, comprehensive income, changes in equity, and cash flows, along with detailed notes explaining significant accounting policies, acquisitions, revenue breakdown, cash management, responsibility plans, fair value measurements, debt, settlement guarantees, stockholders' equity, earnings per share, share-based compensation, income taxes, and legal matters [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This section presents a snapshot of the company's financial position, detailing assets, liabilities, and equity | Metric | June 30, 2025 (in millions) | September 30, 2024 (in millions) | Change (2025 vs 2024) | | :-------------------------------- | :--------------------------- | :------------------------------ | :-------------------- | | Total Assets | $100,024 | $94,511 | +$5,513 | | Total Liabilities | $61,360 | $55,374 | +$5,986 | | Total Equity | $38,664 | $39,137 | -$473 | | Cash and cash equivalents | $17,092 | $11,975 | +$5,117 | | Current maturities of debt | $5,548 | — | +$5,548 | - **Total assets increased by** **$5.5 billion**, driven primarily by a **significant increase** in cash and cash equivalents. **Total liabilities also increased by** nearly **$6.0 billion**, largely due to current maturities of debt[13](index=13&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance, showing revenues, expenses, and net income over periods | Metric | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | YoY Change (%) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | :------------- | | Net revenue | $10,172 | $8,900 | 14.3% | | Total operating expenses | $3,995 | $2,962 | 34.9% | | Operating income | $6,177 | $5,938 | 4.0% | | Net income | $5,272 | $4,872 | 8.2% | | Diluted EPS (Class A) | $2.69 | $2.40 | 12.1% | | Metric | Nine Months Ended June 30, 2025 (in millions) | Nine Months Ended June 30, 2024 (in millions) | YoY Change (%) | | :-------------------------- | :-------------------------------------- | :-------------------------------------- | :------------- | | Net revenue | $29,276 | $26,309 | 11.3% | | Total operating expenses | $11,430 | $9,063 | 26.1% | | Operating income | $17,846 | $17,246 | 3.5% | | Net income | $14,968 | $14,425 | 3.8% | | Diluted EPS (Class A) | $7.59 | $7.08 | 7.2% | - **Net revenue grew by** **14%** for the three months and **11%** for the nine months ended June 30, 2025, compared to the prior year. **Operating expenses saw a significant increase of** **35%** and **26%** for the respective periods, primarily due to higher litigation provision[15](index=15&type=chunk) [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section details comprehensive income, including net income and other comprehensive income components | Metric | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | YoY Change (%) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | :------------- | | Net income | $5,272 | $4,872 | 8.2% | | Other comprehensive income (loss) | $1,036 | $(62) | NM | | Comprehensive income | $6,308 | $4,810 | 31.1% | | Metric | Nine Months Ended June 30, 2025 (in millions) | Nine Months Ended June 30, 2024 (in millions) | YoY Change (%) | | :-------------------------- | :-------------------------------------- | :-------------------------------------- | :------------- | | Net income | $14,968 | $14,425 | 3.8% | | Other comprehensive income (loss) | $517 | $257 | 101.2% | | Comprehensive income | $15,485 | $14,682 | 5.5% | - **Other comprehensive income (loss) significantly improved**, moving from a loss of **$62 million** in Q3 **2024** to a gain of **$1,036 million** in Q3 **2025**, primarily driven by foreign currency translation adjustments[17](index=17&type=chunk) [Consolidated Statements of Changes in Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) This section tracks changes in equity over time, reflecting net income, dividends, and share repurchases | Metric | June 30, 2025 (in millions) | September 30, 2024 (in millions) | Change | | :-------------------------------- | :--------------------------- | :------------------------------ | :----- | | Total Equity | $38,664 | $39,137 | -$473 | | Metric | Nine Months Ended June 30, 2025 (in millions) | Nine Months Ended June 30, 2024 (in millions) | | :-------------------------------- | :-------------------------------------- | :-------------------------------------- | | Net income | $14,968 | $14,425 | | Cash dividends declared and paid | $(3,488) | $(3,176) | | Repurchases of class A common stock | $(13,241) | $(11,163) | - **Total equity decreased by** **$473 million** from September 30, **2024**, to June 30, **2025**. The **company paid** **$3.488 billion** in dividends and **repurchased** **$13.241 billion** of Class A common stock during the nine months ended June 30, **2025**[22](index=22&type=chunk)[29](index=29&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section reports cash generated and used across operating, investing, and financing activities | Cash Flow Activity | Nine Months Ended June 30, 2025 (in millions) | Nine Months Ended June 30, 2024 (in millions) | Change | | :-------------------------------- | :-------------------------------------- | :-------------------------------------- | :----- | | Net cash provided by operating activities | $16,821 | $13,286 | +$3,535 | | Net cash provided by (used in) investing activities | $404 | $(2,510) | +$2,914 | | Net cash used in financing activities | $(12,963) | $(13,564) | +$601 | | Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | $4,678 | $(2,714) | +$7,392 | - **Net cash provided by operating activities increased by** **$3.5 billion**, and **investing activities shifted from a net use of** **$2.5 billion** to a net provision of **$404 million**, significantly improving overall cash position[33](index=33&type=chunk) [Notes to Consolidated Financial Statements (Unaudited)](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed explanations and additional information supporting the unaudited financial statements [Note 1—Summary of Significant Accounting Policies](index=12&type=section&id=Note%201%E2%80%94Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting principles and methods used in preparing the financial statements - Visa Inc. is a global payments technology company facilitating commerce and money movement across over **200** countries, operating VisaNet for transaction processing services (authorization, clearing, settlement). It is not a financial institution and does not issue cards or extend credit[35](index=35&type=chunk) - The unaudited consolidated financial statements are prepared in accordance with GAAP and include all normal recurring adjustments necessary for fair presentation[36](index=36&type=chunk)[38](index=38&type=chunk) [Note 2—Acquisitions](index=12&type=section&id=Note%202%E2%80%94Acquisitions) This note details the company's recent acquisition activities and their financial impact - In December **2024**, **Visa acquired** Featurespace Limited, a developer of real-time AI payments protection technology, for **$946 million**. Of this, **$794 million** was **allocated to goodwill**[40](index=40&type=chunk) [Note 3—Revenue](index=13&type=section&id=Note%203%E2%80%94Revenue) This note provides a breakdown of the company's revenue streams by category and geography | Revenue Category | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | YoY Change (%) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | :------------- | | Service revenue | $4,330 | $3,967 | 9.2% | | Data processing revenue | $5,153 | $4,489 | 14.8% | | International transaction revenue | $3,633 | $3,194 | 13.7% | | Other revenue | $1,028 | $780 | 31.8% | | Client incentives | $(3,972) | $(3,530) | 12.5% | | Net revenue | $10,172 | $8,900 | 14.3% | | Revenue by Geography | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | YoY Change (%) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | :------------- | | U.S. | $3,927 | $3,621 | 8.5% | | International | $6,245 | $5,279 | 18.3% | | Net revenue | $10,172 | $8,900 | 14.3% | - **Revenue from value-added services increased by** **28%** to **$2.8 billion** for the three months ended June 30, **2025**, and by **22%** to **$7.8 billion** for the nine months ended June 30, **2025**, compared to the prior year[42](index=42&type=chunk) [Note 4—Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents](index=14&type=section&id=Note%204%E2%80%94Cash%2C%20Cash%20Equivalents%2C%20Restricted%20Cash%20and%20Restricted%20Cash%20Equivalents) This note details the composition and changes in cash, cash equivalents, and restricted cash balances | Category | June 30, 2025 (in millions) | September 30, 2024 (in millions) | | :---------------------------------------------------------- | :--------------------------- | :------------------------------ | | Cash and cash equivalents | $17,092 | $11,975 | | Restricted cash and restricted cash equivalents (U.S. litigation escrow) | $2,696 | $3,089 | | Restricted cash and restricted cash equivalents (Customer collateral) | $3,614 | $3,524 | | Total Cash, cash equivalents, restricted cash and restricted cash equivalents | $24,441 | $19,763 | - **Total cash, cash equivalents, and restricted cash increased by** **$4.678 billion** from September 30, **2024**, to June 30, **2025**[45](index=45&type=chunk) [Note 5—U.S. and Europe Retrospective Responsibility Plans](index=14&type=section&id=Note%205%E2%80%94U.S.%20and%20Europe%20Retrospective%20Responsibility%20Plans) This note describes plans for managing U.S. litigation escrow and Europe retrospective responsibility | U.S. Litigation Escrow Account Activity | Nine Months Ended June 30, 2025 (in millions) | Nine Months Ended June 30, 2024 (in millions) | | :-------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Balance as of beginning of period | $3,089 | $1,764 | | Deposits into the U.S. litigation escrow account | $375 | — | | Payments to opt-out merchants, net of interest | $(768) | $(168) | | Balance as of end of period | $2,696 | $1,596 | - Under the Europe retrospective responsibility plan, Visa is entitled to recover certain losses from VE territory covered litigation through periodic adjustments to the Class A common stock conversion rates for Series B and C preferred stock[48](index=48&type=chunk) - As of June 30, **2025**, the **total recovery for covered losses available from Series B and C preferred stock was** **$2,757 million**, compared to **$2,130 million** as of September 30, **2024**[49](index=49&type=chunk) [Note 6—Fair Value Measurements and Investments](index=16&type=section&id=Note%206%E2%80%94Fair%20Value%20Measurements%20and%20Investments) This note provides information on the fair value of financial instruments and investment portfolios | Asset Category (Level 1) | June 30, 2025 (in millions) | September 30, 2024 (in millions) | | :------------------------- | :--------------------------- | :------------------------------ | | Money market funds | $13,412 | $10,403 | | U.S. Treasury securities | $7 | $7 | | Marketable equity securities | $318 | $301 | | Asset Category (Level 2) | June 30, 2025 (in millions) | September 30, 2024 (in millions) | | :------------------------- | :--------------------------- | :------------------------------ | | U.S. government-sponsored debt securities | $304 | $496 | | Derivative instruments | $89 | $103 | - For the nine months ended June 30, **2025**, Visa recognized **net unrealized losses of** **$40 million** on marketable and non-marketable equity securities, compared to **$3 million** in the prior year[53](index=53&type=chunk) - As of June 30, **2025**, the **carrying value of debt was** **$25.1 billion** with an **estimated fair value of** **$23.2 billion**, compared to **$20.8 billion** and **$19.2 billion**, respectively, as of September 30, **2024**[56](index=56&type=chunk) [Note 7—Debt](index=19&type=section&id=Note%207%E2%80%94Debt) This note details the company's debt structure, including issuances, maturities, and carrying values | Debt Category | June 30, 2025 (in millions) | September 30, 2024 (in millions) | | :-------------------------- | :--------------------------- | :------------------------------ | | Total debt | $25,391 | $21,111 | | Unamortized discounts and debt issuance costs | $(188) | $(142) | | Hedge accounting fair value adjustments | $(65) | $(133) | | Total carrying value of debt | $25,138 | $20,836 | | Current maturities of debt | $5,548 | — | | Long-term debt | $19,590 | $20,836 | - In May **2025**, **Visa issued** **€3.5 billion** (**$3.9 billion**) in **Euro-denominated fixed-rate senior notes** with maturities ranging from **3** to **19** years, intending to use the proceeds for general corporate purposes, including refinancing existing indebtedness[61](index=61&type=chunk) - The **€3.5 billion Euro-denominated senior notes** issued in May **2025** were **designated as a net investment hedge** against a portion of the Company's Euro-denominated net investment in Visa Europe[63](index=63&type=chunk) [Note 8—Settlement Guarantee Management](index=20&type=section&id=Note%208%E2%80%94Settlement%20Guarantee%20Management) This note explains Visa's settlement guarantee process and associated risk management strategies - Visa indemnifies clients for settlement losses due to other clients' failure to fund obligations, creating settlement risk due to timing differences between transaction and settlement dates[64](index=64&type=chunk) - For the nine months ended June 30, **2025**, **Visa's maximum daily settlement exposure was** **$153.4 billion**, with an **average daily exposure of** **$90.0 billion**. **Total collateral held to mitigate this risk was** **$8.5 billion** as of June 30, **2025**[65](index=65&type=chunk) [Note 9—Stockholders' Equity](index=21&type=section&id=Note%209%E2%80%94Stockholders%27%20Equity) This note provides details on the capital structure, including common stock, share repurchases, and dividends | Stock Class | Shares Outstanding (June 30, 2025) | As-converted Class A Common Stock (June 30, 2025, in millions) | | :-------------------- | :--------------------------------- | :------------------------------------------------------------- | | Class A common stock | 1,702 million | 1,702 | | Class B-1 common stock | 5 million | 8 | | Class B-2 common stock | 120 million | 185 | | Class C common stock | 9 million | 36 | | Total | | 1,945 | | Share Repurchase Activity | Three Months Ended June 30, 2025 (in millions) | Nine Months Ended June 30, 2025 (in millions) | | :-------------------------- | :--------------------------------------- | :-------------------------------------- | | Shares repurchased | 14 | 40 | | Total cost | $4,828 | $13,241 | | Average repurchase cost per share | $349.24 | $330.39 | - In April **2025**, the **board authorized an additional** **$30.0 billion** share repurchase program, bringing the **remaining authorized funds to** **$29.8 billion** as of June 30, **2025**. **Dividends declared and paid were** **$1,154 million** for the three months and **$3.5 billion** for the nine months ended June 30, **2025**[68](index=68&type=chunk)[69](index=69&type=chunk) [Note 10—Earnings Per Share](index=23&type=section&id=Note%2010%E2%80%94Earnings%20Per%20Share) This note presents the basic and diluted earnings per share calculations for Class A common stock | EPS (Class A Common Stock) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--------------------------- | :------------------------------- | :------------------------------- | | Basic Earnings Per Share | $2.69 | $2.40 | | Diluted Earnings Per Share | $2.69 | $2.40 | | EPS (Class A Common Stock) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--------------------------- | :------------------------------ | :------------------------------ | | Basic Earnings Per Share | $7.60 | $7.09 | | Diluted Earnings Per Share | $7.59 | $7.08 | [Note 11—Share-based Compensation](index=24&type=section&id=Note%2011%E2%80%94Share-based%20Compensation) This note outlines the costs and details related to the company's share-based compensation plans - **Share-based compensation cost related to the EIP was** **$215 million** for the three months ended June 30, **2025** (up from **$203 million** in **2024**) and **$680 million** for the nine months ended June 30, **2025** (up from **$638 million** in **2024**)[74](index=74&type=chunk) [Note 12—Income Taxes](index=25&type=section&id=Note%2012%E2%80%94Income%20Taxes) This note provides information on income tax expense, effective tax rates, and unrecognized tax benefits | Period | Effective Income Tax Rate | | :-------------------------- | :------------------------ | | Three Months Ended June 30, 2025 | 17% | | Three Months Ended June 30, 2024 | 19% | | Nine Months Ended June 30, 2025 | 17% | | Nine Months Ended June 30, 2024 | 18% | - For the three and nine months ended June 30, **2025**, **gross unrecognized tax benefits decreased by** **$2.4 billion** and **$2.1 billion**, respectively, due to reassessment from new information during a tax examination[75](index=75&type=chunk) - The **effective income tax rates for the three and nine months ended June 30, 2025, were** **17%**, a decrease from **19%** and **18%** respectively in the prior year, primarily due to a change in the geographic mix of earnings and tax benefits from reassessment of uncertain tax positions[75](index=75&type=chunk)[81](index=81&type=chunk) [Note 13—Legal Matters](index=25&type=section&id=Note%2013%E2%80%94Legal%20Matters) This note details the company's significant legal proceedings and their potential financial implications | Accrued Litigation Activity | Nine Months Ended June 30, 2025 (in millions) | Nine Months Ended June 30, 2024 (in millions) | | :-------------------------- | :-------------------------------------- | :-------------------------------------- | | Balance as of beginning of period | $1,727 | $1,751 | | Provision for uncovered legal matters | $114 | $311 | | Provision for covered legal matters | $1,564 | $201 | | Payments for legal matters | $(1,053) | $(575) | | Balance as of end of period | $2,352 | $1,688 | - For the nine months ended June 30, **2025**, Visa recorded **additional accruals of** **$1.5 billion** for the interchange multidistrict litigation and **deposited** **$375 million** into the U.S. litigation escrow account[84](index=84&type=chunk) - In Europe, **over 1,150 merchants have commenced proceedings** related to interchange rates. Visa has **settled claims with over 950 merchants**, with approximately **150** outstanding claims and over **30** threatened claims[91](index=91&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Visa's financial performance, condition, and liquidity. It highlights key financial results, drivers of revenue and expense changes, and a reconciliation of GAAP to non-GAAP measures. It also discusses payments volume, processed transactions, and the company's capital resources and upcoming accounting pronouncements [Overview](index=31&type=section&id=Overview) This section provides management's perspective on Visa's financial performance, condition, and liquidity | Metric | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | YoY Change (%) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | :------------- | | Net revenue (GAAP) | $10,172 | $8,900 | 14% | | Operating expenses (GAAP) | $3,995 | $2,962 | 35% | | Net income (GAAP) | $5,272 | $4,872 | 8% | | Diluted EPS (GAAP) | $2.69 | $2.40 | 12% | | Non-GAAP operating expenses | $3,307 | $2,927 | 13% | | Non-GAAP net income | $5,834 | $4,909 | 19% | | Non-GAAP diluted EPS | $2.98 | $2.42 | 23% | - **Net revenue increased** **14%** for the three months and **11%** for the nine months ended June 30, **2025**, driven by growth in processed transactions, nominal cross-border volume, and nominal payments volume, partially offset by higher client incentives[110](index=110&type=chunk) - **Operating expenses increased significantly** (**35%** for three months, **26%** for nine months) primarily due to higher litigation provision and personnel expenses. **Non-GAAP operating expenses increased** **13%** and **10%** respectively[111](index=111&type=chunk)[112](index=112&type=chunk) [Payments Volume and Processed Transactions](index=34&type=section&id=Payments%20Volume%20and%20Processed%20Transactions) This section analyzes trends in payments volume and processed transactions, key indicators of business activity | Nominal Payments Volume (Visa) | Three Months Ended March 31, 2025 (in billions) | Three Months Ended March 31, 2024 (in billions) | YoY Change (%) | | :----------------------------- | :------------------------------------------ | :------------------------------------------ | :------------- | | Consumer credit | $1,337 | $1,289 | 4% | | Consumer debit | $1,591 | $1,483 | 7% | | Commercial | $416 | $401 | 4% | | Total nominal payments volume | $3,344 | $3,173 | 5% | | Cash volume | $599 | $609 | (2%) | | Total nominal volume | $3,943 | $3,782 | 4% | | Processed Transactions | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | YoY Change (%) | | :--------------------- | :--------------------------------------- | :--------------------------------------- | :------------- | | Visa processed transactions | 65,443 | 59,318 | 10% | | Processed Transactions | Nine Months Ended June 30, 2025 (in millions) | Nine Months Ended June 30, 2024 (in millions) | | :--------------------- | :-------------------------------------- | :-------------------------------------- | | Visa processed transactions | 189,891 | 172,247 | 10% | - **Total nominal payments volume increased by** **5%** for the three months and **6%** for the nine months ended March 31, **2025**. **Visa processed transactions grew by** **10%** for both the three and nine months ended June 30, **2025**[124](index=124&type=chunk)[125](index=125&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, focusing on revenue, expenses, and non-operating items [Net Revenue](index=36&type=section&id=Net%20Revenue) This section provides a detailed analysis of the company's various revenue streams and their drivers | Revenue Component | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | YoY Change (%) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | :------------- | | Service revenue | $4,330 | $3,967 | 9% | | Data processing revenue | $5,153 | $4,489 | 15% | | International transaction revenue | $3,633 | $3,194 | 14% | | Other revenue | $1,028 | $780 | 32% | | Client incentives | $(3,972) | $(3,530) | 13% | | Net revenue | $10,172 | $8,900 | 14% | - **Net revenue growth was primarily driven by** a **15%** increase in data processing revenue due to **10%** growth in processed transactions, and a **14%** increase in international transaction revenue due to **13%** growth in nominal cross-border volumes[130](index=130&type=chunk) - **Revenue from value-added services increased by** **28%** and **22%** over the three and nine-month prior-year comparable periods, respectively, primarily due to growth in advisory and other services, issuing solutions, and acceptance solutions[129](index=129&type=chunk) [Operating Expenses](index=38&type=section&id=Operating%20Expenses) This section details the components of the company's operating expenses and their changes | Operating Expense Component | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | YoY Change (%) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | :------------- | | Personnel | $1,749 | $1,573 | 11% | | Marketing | $421 | $378 | 11% | | Network and processing | $224 | $200 | 12% | | Professional fees | $187 | $152 | 23% | | Depreciation and amortization | $317 | $264 | 20% | | General and administrative | $482 | $382 | 26% | | Litigation provision | $615 | $13 | NM | | Total operating expenses | $3,995 | $2,962 | 35% | - **Litigation provision increased significantly** (not meaningful percentage change) due to higher accruals related to U.S. covered litigation and uncovered litigation. **Personnel expenses rose** **11%** due to increased headcount and compensation, including acquisitions and severance costs[132](index=132&type=chunk) - **Professional fees increased** **23%** primarily due to higher legal fees, and **depreciation and amortization expenses increased** **20%** from ongoing investments and acquisitions[132](index=132&type=chunk) [Non-operating Income (Expense)](index=39&type=section&id=Non-operating%20Income%20(Expense)) This section covers income and expenses outside of core operations, such as interest and investment income | Non-operating Item | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | YoY Change (%) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | :------------- | | Interest expense | $(39) | $(196) | (80%) | | Investment income (expense) and other | $195 | $247 | (21%) | | Total non-operating income (expense) | $156 | $51 | 208% | | Non-operating Item | Nine Months Ended June 30, 2025 (in millions) | Nine Months Ended June 30, 2024 (in millions) | YoY Change (%) | | :-------------------------- | :-------------------------------------- | :-------------------------------------- | :------------- | | Interest expense | $(379) | $(465) | (19%) | | Investment income (expense) and other | $504 | $763 | (34%) | | Total non-operating income (expense) | $125 | $298 | (58%) | - **Interest expense decreased by** **80%** for the three months and **19%** for the nine months, primarily due to higher interest benefits related to taxes and lower losses from derivatives, partially offset by new debt issuance[136](index=136&type=chunk) - **Investment income (expense) and other decreased by** **21%** for the three months and **34%** for the nine months, mainly due to lower interest income on cash and investments, and higher losses on equity investments for the nine-month period[136](index=136&type=chunk) [Effective Income Tax Rate](index=39&type=section&id=Effective%20Income%20Tax%20Rate) This section explains the company's effective income tax rate and factors influencing its changes | Period | Effective Income Tax Rate | | :-------------------------- | :------------------------ | | Three Months Ended June 30, 2025 | 17% | | Three Months Ended June 30, 2024 | 19% | | Nine Months Ended June 30, 2025 | 17% | | Nine Months Ended June 30, 2024 | 18% | - The **effective income tax rate decreased to** **17%** for both the three and nine months ended June 30, **2025**, from **19%** and **18%** respectively in the prior year, due to changes in geographic mix of earnings and tax benefits from reassessment of uncertain tax positions[134](index=134&type=chunk)[137](index=137&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash flow, capital structure, and ability to meet financial obligations | Cash Flow Activity | Nine Months Ended June 30, 2025 (in millions) | Nine Months Ended June 30, 2024 (in millions) | | :-------------------------------- | :-------------------------------------- | :-------------------------------------- | | Operating activities | $16,821 | $13,286 | | Investing activities | $404 | $(2,510) | | Financing activities | $(12,963) | $(13,564) | - **Cash provided by operating activities increased by** **$3.5 billion**, and investing activities shifted to a net cash provision of **$404 million**, primarily due to the absence of investment securities purchases[138](index=138&type=chunk)[139](index=139&type=chunk) - **Cash used in financing activities decreased**, driven by proceeds from new senior notes issuance (**$3.9 billion**) partially offset by **higher share repurchases** (**$13.2 billion**) and **dividends paid** (**$3.5 billion**)[140](index=140&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk) [Accounting Pronouncements Not Yet Adopted](index=41&type=section&id=Accounting%20Pronouncements%20Not%20Yet%20Adopted) This section outlines new accounting standards that the company will adopt in future periods - FASB ASU **2023-07** (effective Oct **1**, **2024**) will enhance reportable segment disclosures, including significant segment expenses and interim disclosures[147](index=147&type=chunk) - FASB ASU **2023-09** (effective Oct **1**, **2025**) will improve income tax disclosures, requiring disaggregated information for effective tax rate reconciliation and income taxes paid[148](index=148&type=chunk) - FASB ASU **2024-03** (effective Oct **1**, **2027**) requires additional disclosures about specific expense categories underlying income statement line items[149](index=149&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no significant changes to the company's market risks since September 30, 2024 - **No significant changes to market risks have occurred** since September 30, **2024**[150](index=150&type=chunk) [ITEM 4. Controls and Procedures](index=41&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures, concluding they were effective as of June 30, 2025. No material changes to internal control over financial reporting occurred during the quarter - **Disclosure controls and procedures were evaluated and deemed effective** at the reasonable assurance level as of June 30, **2025**[151](index=151&type=chunk) - There have been **no material changes in internal control over financial reporting** during the third quarter of fiscal **2025**[152](index=152&type=chunk) PART II. OTHER INFORMATION This section provides additional information not covered in the financial statements, including legal, equity, and other disclosures [ITEM 1. Legal Proceedings](index=42&type=section&id=ITEM%201.%20Legal%20Proceedings) This section refers to Note 13 of the unaudited consolidated financial statements for developments concerning the Company's current material legal proceedings - For developments concerning current material legal proceedings, refer to Note **13**—Legal Matters in the unaudited consolidated financial statements[154](index=154&type=chunk) [ITEM 1A. Risk Factors](index=42&type=section&id=ITEM%201A.%20Risk%20Factors) This section directs readers to the Company's Annual Report on Form 10-K for a comprehensive discussion of its risk factors - For a discussion of the Company's risk factors, refer to the 'Risk Factors' section in the Annual Report on Form **10-K** for the year ended September **30**, **2024**[155](index=155&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's purchases of Class A common stock in the open market for the three months ended June 30, 2025, and refers to Note 9 for further discussion on share repurchase programs | Period | Total Number of Shares Purchased (in millions) | Average Purchase Price per Share | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) | | :----------------- | :------------------------------------------- | :------------------------------- | :---------------------------------------------------------------------------------------------------- | | April 1 – 30, 2025 | 5 | $333.49 | $32,833 | | May 1 – 31, 2025 | 4 | $359.75 | $31,482 | | June 1 – 30, 2025 | 5 | $359.45 | $29,834 | | Total | 14 | $349.24 | | - The **company repurchased** **14 million** **shares of Class A common stock** for a **total cost of** **$4,828 million** during the three months ended June 30, **2025**, at an **average price of** **$349.24** per share[156](index=156&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=42&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities - **There were no defaults upon senior securities**[157](index=157&type=chunk) [ITEM 4. Mine Safety Disclosures](index=42&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the company - **Mine safety disclosures are not applicable**[158](index=158&type=chunk) [ITEM 5. Other Information](index=42&type=section&id=ITEM%205.%20Other%20Information) This section discloses that certain officers adopted Rule 10b5-1 trading arrangements during the three months ended June 30, 2025, for the sale of Class A common stock underlying employee stock options - Julie B. Rottenberg, General Counsel, adopted a **Rule 10b5-1 trading arrangement** on May **7**, **2025**, for the **sale of up to** **8,109** **shares of Class A common stock**[159](index=159&type=chunk) - Ryan McInerney, Director and CEO, adopted a **Rule 10b5-1 trading arrangement** on May **15**, **2025**, for the **sale of up to** **143,075** **shares of Class A common stock**[160](index=160&type=chunk) [ITEM 6. Exhibits](index=44&type=section&id=ITEM%206.%20Exhibits) This section provides an index of exhibits filed with the Form 10-Q, including forms of senior notes, certifications, and Inline XBRL documents - The exhibit index includes forms of **2.250%** Senior Notes due **2028**, **3.125%** Senior Notes due **2033**, **3.500%** Senior Notes due **2037**, and **3.875%** Senior Notes due **2044**[163](index=163&type=chunk) - Certifications from the Principal Executive Officer and Principal Financial Officer (Rule **13a-14(a)/15d-14(a)** and Section **1350**) are included[163](index=163&type=chunk) [Signatures](index=45&type=section&id=Signatures) This section contains the signatures of the registrant's authorized officers, including the Chief Executive Officer, Chief Financial Officer, and Global Corporate Controller, Chief Accounting Officer, certifying the report - The **report is signed by** Ryan McInerney (Chief Executive Officer), Chris Suh (Chief Financial Officer), and Peter Andreski (Global Corporate Controller, Chief Accounting Officer) on July **29**, **2025**[167](index=167&type=chunk)

Financial Data and Key Metrics Changes - Visa reported net revenue of $10.2 billion, an increase of 14% year over year, and EPS rose by 23% year over year [6][35][42] - Overall payments volume grew by 8% year over year in constant dollars, with U.S. payment volume increasing by 7% and international payments volume by 10% [6][35][36] - Cross-border volume, excluding intra-Europe, rose by 11% in constant dollars, and processed transactions grew by 10% year over year [7][35][36] Business Line Data and Key Metrics Changes - Consumer payments revenue was driven by strong payments volume, cross-border volume, and processed transaction growth [41] - Commercial and Money Movement Solutions (CMS) revenue grew by 13% year over year in constant dollars, with Visa Direct transactions increasing by 25% [15][42] - Value-added services revenue reached $2.8 billion, growing by 26% year over year in constant dollars, driven by strength across all portfolios [25][42] Market Data and Key Metrics Changes - Total international payments volume increased by 10% year over year, consistent with Q2 when adjusted for leap year [35][36] - U.S. payments volume growth was generally consistent with Q2, with e-commerce growing faster than face-to-face spend [36][38] - Cross-border volume growth remained strong and above pre-COVID levels, despite currency weakness and travel impacts [31][39] Company Strategy and Development Direction - Visa is focused on innovation in areas such as AI and stablecoins, with a commitment to evolving its product offerings [8][20] - The company aims to deepen relationships with clients and expand its digital payment solutions, including account-to-account payments and open banking initiatives [14][19] - Visa's strategy includes enhancing its value-added services and leveraging its global scale to capture growth opportunities [32][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of consumer spending and the company's ability to navigate macroeconomic challenges [30][48] - The outlook for Q4 remains strong, with expectations for continued growth in net revenue and EPS [46][48] - Visa is planning for FY 2026, evaluating various macroeconomic scenarios and client renewals to drive future growth [95][96] Other Important Information - Visa's operating expenses grew by 13%, primarily due to higher personnel costs and lower-than-expected FX benefits [43][66] - The company issued €3.5 billion in fixed-rate senior notes and repurchased approximately $4.8 billion in stock during the quarter [43][44] - Visa is actively involved in the stablecoin space, supporting regulatory clarity and exploring its use in remittances and cross-border transactions [20][23] Q&A Session Summary Question: Follow-up on the fourth quarter guide - Management indicated that Q4 is expected to be fundamentally strong, with resilient consumer spending and normalization of prior one-time impacts [52][54] Question: Investment priorities and operating expenses - Management confirmed that investment priorities remain unchanged, focusing on product development and growth, while Q3 operating expenses were higher due to FX and personnel costs [62][66] Question: Spread between international transaction fees and nominal cross-border volume - Management explained that the spread was impacted by higher currency volatility, hedging losses, and changes in mix, particularly with U.S. inbound travel [70][74] Question: Visa Direct's growth and pricing dynamics - Management highlighted Visa Direct's significant growth and its role as a cross-border money movement platform, with pricing strategies varying by region and use case [78][84] Question: Expectations for volume transactions in fiscal 2026 - Management expressed confidence in the growth potential across its business segments and the ongoing momentum in value-added services [90][92] Question: Role of stablecoins in remittances - Management discussed the potential for stablecoins to facilitate faster and cheaper cross-border transactions, benefiting both consumers and service providers [100][104] Question: Growth of advisory services related to stablecoins - Management confirmed strong growth in the advisory business, particularly around stablecoins, and highlighted opportunities for monetization through consulting services [108][110]

Financial Data and Key Metrics Changes - The company reported net revenue of $10.2 billion, an increase of 14% year over year, and EPS rose by 23% year over year [6][35] - Overall payments volume grew by 8% year over year in constant dollars, with U.S. payment volume increasing by 7% and international payments volume by 10% [6][35] - Cross-border volume, excluding intra-Europe, rose by 11% in constant dollars, and processed transactions grew by 10% year over year [6][35] Business Line Data and Key Metrics Changes - Consumer payments revenue was driven by strong payments volume, cross-border volume, and processed transaction growth [42] - Commercial and money movement solutions revenue grew by 13% year over year in constant dollars, with Visa Direct transactions increasing by 25% [42] - Value-added services revenue reached $2.8 billion, growing by 26% year over year in constant dollars, driven by strength across all portfolios [43][25] Market Data and Key Metrics Changes - Total international payments volume increased by 10% year over year, consistent with Q2 when adjusted for leap year [35] - U.S. payments volume growth was generally consistent with Q2, with e-commerce growing faster than face-to-face spend [36] - Cross-border volume growth remained strong and above pre-COVID levels, despite impacts from currency weakness and travel to specific countries [32] Company Strategy and Development Direction - The company is focused on advancing its product developments in areas such as AI and stablecoins, aiming to lead in consumer payments, commercial solutions, and money movement [8][21] - Visa is enhancing its digital future through innovations like Visa Intelligent Commerce and the Flex credential, which targets various use cases [12][9] - The company is committed to expanding its stablecoin capabilities, seeing product market fit in emerging markets and cross-border money movement [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of consumer spending and the company's ability to capture significant opportunities ahead [32][49] - The company anticipates strong growth in Q4, with adjusted net revenue expectations remaining unchanged in the high single digits to low double digits [47][49] - The strength and diversity of Visa's business model are expected to drive long-term growth, even amid changing economic conditions [49][49] Other Important Information - Operating expenses grew by 13%, higher than expected due to lower FX benefits and increased personnel costs [44] - The company issued €3.5 billion of fixed-rate senior notes and repurchased approximately $4.8 billion in stock during the quarter [44] - Visa's total credentials increased by 7% year over year, with over 50% of e-commerce transactions now tokenized globally [9] Q&A Session Summary Question: Follow-up on the fourth quarter guide - Management indicated that Q4 is expected to be fundamentally strong, with resilient consumer spending and normalization of one-time impacts from the previous year [52][54] Question: Investment priorities and operating expenses - Management confirmed that investment priorities remain unchanged, focusing on a rich product pipeline, while Q3 operating expenses were higher due to FX benefits and personnel costs [62][66] Question: Spread between international transaction fees and nominal cross-border volume - Management explained that higher currency volatility, hedging losses, and mix impacts contributed to the spread dynamics, with U.S. inbound travel affecting yields [70][74] Question: Visa Direct's growth and pricing dynamics - Management highlighted Visa Direct's significant growth and its role as a cross-border money movement platform, with pricing strategies varying by region and use case [78][86] Question: Expectations for fiscal 2026 - Management expressed confidence in the growth opportunities across its three engines and indicated that more details would be provided in the next earnings call [90][96] Question: Role of stablecoins in remittances - Management discussed the potential of stablecoins to enable faster and cheaper cross-border transactions, benefiting both end users and clients [99][102] Question: Growth in advisory services related to stablecoins - Management confirmed strong growth in advisory services, particularly around stablecoins, and emphasized the importance of their consulting capabilities in this area [105][107] Question: Incentives for Q4 and fiscal 2026 - Management noted that Q4 is expected to see the highest growth in incentives, with no changes to the adjusted net revenue guidance [110][111]

Group 1 - The core viewpoint is that Visa executives believe tariffs do not have a substantial impact on cross-border payments [1] Group 2 - Visa's perspective suggests confidence in the resilience of cross-border payment systems despite potential trade barriers [1] - The statement indicates a broader industry sentiment that may influence investor confidence in payment processing companies [1]

Group 1 - The core viewpoint is that the CEO of Visa emphasizes that the best way to use stablecoins for transactions is through Visa [1] Group 2 - Visa is positioning itself as a leader in the integration of stablecoins into everyday transactions [1] - The company aims to enhance the usability of stablecoins, making them more accessible for consumers [1] - This strategy aligns with the broader trend of digital currencies gaining traction in the financial ecosystem [1]

Core Insights - Visa's CEO reported that consumer spending in the U.S. for the second quarter remains strong, indicating resilience in the economy despite external pressures [1] - The impact of tariffs on consumer spending has been minimal, suggesting that economic fundamentals are holding steady [1] Group 1 - The second quarter spending growth in the U.S. is robust, reflecting positive consumer sentiment and economic activity [1] - Tariffs have not significantly affected spending patterns, indicating that consumers are continuing to engage in spending despite potential trade-related concerns [1]

Core Viewpoint - Visa executives express support for the "Genius Act," viewing it as a significant milestone in the path toward clearer regulation of stablecoins [1] Group 1 - Visa's leadership believes that the "Genius Act" will enhance regulatory clarity for stablecoins [1]