Shares of Visa (V) are slightly down in after-hours trading after the credit card company reported earnings for its third quarter of Fiscal Year 2025. Earnings per share came in at $2.98, which beat analysts’ consensus estimate of $2.85 per share. Sales increased by 14% year-over-year, with net revenue hitting $10.2 billion. This also beat analysts’ expectations of $9.85 billion.
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When breaking down the numbers further, we can see that Visa continues to steadily grow its revenue as it has done so over the past several years (pictured below). Indeed, service revenue reached $4.3 billion, up 9% from the previous year. At the same time, Data processing revenue increased by 15% year-over-year to $5.2 billion, while international transaction revenue rose by 14% to $3.6 billion. Other revenue totaled $1 billion, which was a 32% increase from last year. However, Visa’s loss to client incentives climbed 13% to $4 billion.
In addition, there was an 8% rise in payments volume from the previous year when measured in constant currency. Excluding European transactions, the cross-border volume, a key driver of international revenue, surged 11% in constant currency. The total cross-border volume also saw a 12% uptick in the same period. Furthermore, the total transactions processed by Visa in this quarter amounted to 65.4 billion, a 10% annual growth. Moreover, Visa bought back approximately 14 million shares at an average price of $349.24 per share for a total of $4.8 billion. As of June 30, 2025, Visa had $29.8 billion remaining in its share repurchase fund.
Is Visa stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Visa stock based on 21 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average Visa price target of $390.64 per share implies 10.7% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
