Visa Q4 Earnings Beat Estimates on Processed Transactions

Visa Inc. V reported fourth-quarter fiscal 2025 earnings per share (EPS) of $2.98, which beat the Zacks Consensus Estimate of $2.97. The bottom line increased 10% year over year.Net revenues of $10.7 billion improved 12% year over year. The top line beat the consensus mark by 1%.The strong quarterly results benefited from higher processed transactions, payment and cross-border volumes. However, the upside was partly offset by increased operating expenses, primarily personnel costs, professional fees and general and administrative expenses.Visa Inc. Price, Consensus and EPS Surprise Visa Inc. price-consensus-eps-surprise-chart | Visa Inc. QuoteQ4 Business Drivers of VisaVisa's payments volume increased 9% year over year on a constant-dollar basis in the fiscal fourth quarter, driven by expanding operations across the United States, Europe, CEMEA and LAC regions. Processed transactions (implying transactions processed by Visa) grew 10% year over year to 67.7 billion. The metric beat our estimate of 67.4 billion.On a constant-dollar basis, the cross-border volume of Visa rose 12% year over year. Excluding transactions within Europe, its cross-border volume (that boosts a company’s international transaction revenues) jumped 11% year over year on a constant-dollar basis.Visa’s Q4 Operational PerformanceService revenues (depending on the payment volume in the previous quarter) increased 10% year over year to $4.6 billion in the September quarter, attributable to expanding payment volumes. The metric beat our estimate by 0.3%.Data processing revenues of $5.4 billion grew 17% year over year and beat the Zacks Consensus Estimate of $5.2 billion.International transaction revenues rose 10% year over year to $3.8 billion in the fiscal fourth quarter, driven by higher cross-border volumes. The metric beat our estimate by 1.1%. Other revenues were $1.2 billion, which climbed 21% year over year and surpassed our estimate by 1.4%.Client incentives (a contra-revenue item) increased 17% year over year to $4.2 billion but missed the Zacks Consensus Estimate by 1.6%.Adjusted operating expenses of $3.6 billion escalated 13% year over year due to higher personnel costs, general and administrative expenses and professional fees. Our estimate of the metric was $3.5 billion. Interest expenses increased 19.3% year over year to $210 million.Visa’s Balance Sheet (As of Sept. 30, 2025)Visa exited the September quarter with cash and cash equivalents of $17.2 billion, which rose from the fiscal 2024-end level of $12 billion.Total assets of $99.6 billion increased from the fiscal 2024-end level of $94.5 billion.Visa’s long-term debt amounted to $19.6 billion, down from $20.8 billion as of Sept. 30, 2024.Total equity declined 3.1% from the fiscal 2024-end figure to $37.9 billion.Visa’s Cash FlowsThe company generated net cash from operations of $6.2 billion in the fiscal fourth quarter, which declined 6.4% year over year. Free cash flows were recorded at $5.8 billion, down 8% year over year.Visa’s Capital Deployment UpdateVisa rewarded $6.1 billion to its shareholders via share buybacks ($4.9 billion) and dividends ($1.2 billion) in the September quarter. The company had leftover authorized funds of $24.9 billion under its repurchase program as of Sept. 30, 2025.The quarterly cash dividend, amounting to 67 cents per share, will be paid out on Dec. 1, 2025, to its shareholders of record as of Nov. 12.V’s FY25 UpdateIn fiscal 2025, Visa achieved net revenues of $40 billion, marking an 11% year-over-year increase. Adjusted EPS increased 14% year over year to $11.47.Visa’s payments volume rose 8% year over year on a constant-dollar basis. Processed transactions totaled 257.5 billion, representing a 10% year-over-year increase. Cross-border volume expanded 13% on a constant-dollar basis in fiscal 2024.Visa’s Q1 FY26 OutlookOn an adjusted nominal-dollar basis, net revenues are anticipated to witness the high-end of low-double-digit growth. Operating expenses are estimated to grow in the high-end of low double digits on an adjusted nominal-dollar basis. It expects EPS to witness growth in the low teens.The amortization of acquired intangible assets is projected at around $55 million, or 2 cents per share. Acquisition-related costs are expected to be roughly $5 million.Visa’s FY26 ViewManagement estimates net revenues to witness low double-digit growth on an adjusted nominal-dollar basis in fiscal 2026. Operating expenses are also expected to witness low double-digit growth on an adjusted nominal-dollar basis. Management anticipates EPS will witness growth in the low double-digits.The amortization of acquired intangible assets is projected at around $155 million, or 6 cents per share. Acquisition-related costs are expected to be roughly $30 million or 1 cent per share.V’s Zacks RankV currently carries a Zacks Rank #3 (Hold).Upcoming Earnings ReleasesHere are three companies from the Business Services space that are likely to report their respective quarterly earnings soon.Remitly Global, Inc. RELY sports a Zacks Rank of 1 (Strong Buy) at present. The Zacks Consensus Estimate for RELY’s bottom line for the to-be-reported quarter is pegged at 2 cents per share, indicating 100% year-over-year growth. Remitly Global’s earnings beat estimates in three of the past four quarters, with an average surprise of 132.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.PagSeguro Digital Ltd PAGS has a Zacks Rank of 2 (Buy) at present. The Zacks Consensus Estimate for PAGS’ bottom line for the to-be-reported quarter is pegged at 35 cents per share, indicating 9.4% year-over-year growth. PagSeguro Digital’s earnings beat estimates in each of the past four quarters, with an average surprise of 10.1%.Corpay, Inc. CPAY currently has a Zacks Rank of 3. The Zacks Consensus Estimate for CPAY’s bottom line for the to-be-reported quarter of $5.63 per share indicates 12.6% year-over-year growth. It remained stable over the past week. Corpay’s earnings beat estimates in three of the last four quarters and met once.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Visa Inc. (V): Free Stock Analysis Report Remitly Global, Inc. (RELY): Free Stock Analysis Report PagSeguro Digital Ltd. (PAGS): Free Stock Analysis Report Corpay, Inc. (CPAY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks