Visa (V) reported fiscal third-quarter results above Wall Street's estimates as consumer and business spending helped drive annual gains in payments volume.
Adjusted earnings per share rose to $3.32 during the June quarter from $2.98 a year earlier. The consensus on FactSet was for non-GAAP EPS of $3.23. Revenue rose 14% to $11.63 billion, topping expectations for $11.4 billion.
"Consumer and business spending remains resilient, and our strategy continues to deliver strong performance across consumer payments, commercial and money movement solutions and value-added services," Chief Executive Ryan McInerney said in a statement.
Payments volume rose 10% on a constant-dollar basis, with double-digit gains in both cross-border and processed transactions.
Service revenue increased 14% to $4.92 billion, while data processing sales jumped 17% to $6.04 billion. International transaction revenue rose 6% to $3.85 billion.
Visa will eliminate about 2,600 jobs, or 7% of its workforce, primarily targeting technology and product teams, the company confirmed toearlier in the day. The cuts are part of McInerney's initiative to streamline company operations.
Visa now expects fiscal 2026 adjusted earnings per share to increase at the low end of a mid-teens percentage on a constant-dollar basis, compared with the prior guidance that called for a low-teens increase. Visa projects adjusted revenue to rise at the low end of low teens, versus low-double-digit to low-teens growth previously anticipated.
Analysts expect non-GAAP EPS of $13.16 and sales of $45.58 billion for the fiscal year.
For the ongoing three-month period, Visa expects adjusted EPS to grow at the low end of mid-teens and net revenue to rise at the high end of low-double-digits. The Street is looking for non-GAAP EPS of $3.45 and sales of $12.06 billion.
Shares of the company were down 2.1% in after-market trading, and gained 4.5% this year through Tuesday close.
UBS Securities sees Visa and Mastercard (MA) as "the preferred means" of gaining exposure to the payments and financial technology sector, citing their ability to sustain volume growth during economic downturns.
"Cross-border mix for the card networks has and will continue to evolve, shifting slightly more toward ecommerce, remittances, marketplace payouts, and other cross-border (business-to-business), all of which are faster growth and less cyclical (relative to the largest part of the business, which is cross-border travel)," UBS analysts wrote in a note earlier this month.
Mastercard is scheduled to report its quarterly results Thursday.
