Core Viewpoint - The revenue in Q3 2025 is under pressure due to high base effects and macroeconomic factors, with a significant increase in advertising from Alibaba being the highlight, while maintaining a steady profit margin guidance for the year [1][4] Revenue Performance - In Q3 2025, the company reported a net income of $442 million, a decrease of 5% year-on-year (4% decline at constant exchange rates) [1] - Advertising and marketing revenue was $375 million, down 6% year-on-year, while value-added services (VAS) revenue increased by 2% to $67 million [1][2] User Metrics - As of September 2025, the monthly active users (MAU) reached 578 million, with daily active users (DAU) at 257 million [2] Profitability - The Non-GAAP operating profit for Q3 2025 was $132 million, with a Non-GAAP operating profit margin of 30% [2] - The Non-GAAP net profit attributable to shareholders was $111 million, a decline of 20.5% year-on-year, with a diluted Non-GAAP earnings per share of $0.42 [2] Advertising Dynamics - The FMCG sector faced a significant decline due to the high base from the previous year's Paris Olympics, while advertising revenue from Alibaba surged by 112% to $45.5 million, driven by increased budgets for local life services and strong e-commerce demand [1][2] - The company expects a slight year-on-year decline in total revenue of about 3% in Q4 2025, influenced by the performance of the mobile and gaming sectors [2] AI Impact - AI technology is increasingly applied throughout the advertising process, particularly in smart search and recommendation flows, contributing approximately 10% to eCPM improvements [3] - The company aims to maintain a Non-GAAP operating profit margin of 30% for the year, with a projected net profit margin of around 26-27% [3] Investment Outlook - The overall performance for 2025 is becoming clearer, with a focus on maintaining profits while awaiting recovery, despite the FMCG sector's challenges [4] - Key variables for 2025 include stabilization in major consumer spending, synchronization of mobile upgrade cycles and new gaming releases, and continued AI-driven improvements in eCPM [4]

Core Insights - Visa is expected to report Q4 FY'25 earnings on or around October 28, 2025, with projected revenue growth of approximately 10% year-over-year to $10.6 billion and earnings estimated at $2.97 per share, driven by strong payment volumes and robust consumer spending [2] - The company has a current market capitalization of $618 billion, with a revenue of $39 billion over the past twelve months, achieving $26 billion in operating profits and $20 billion in net income [3] Revenue and Growth Drivers - Strong payment volumes are anticipated to be a key driver of growth, particularly in cross-border payments, alongside value-added services (VAS) which saw a 26% year-over-year revenue increase in Q3 FY'25 [2] - VAS growth is attributed to advancements in AI-enhanced fraud detection, real-time analytics, digital checkouts, and various payment security solutions [2] Historical Performance and Trading Insights - Historical data shows that Visa has had 20 earnings records over the last five years, with a 50% occurrence of positive one-day post-earnings returns, and a median positive return of 2.6% compared to a median negative return of -1.3% [5] - The correlation between short-term and medium-term returns post-earnings can provide insights for traders, particularly if 1D and 5D returns show a strong correlation [6]