Visa, the world’s largest payment processor, reported stronger-than-expected earnings for Wall Street on Tuesday, sending its shares up more than 6% in extended trade. The strong performance came as the company benefited from continued growth in payment volumes, demonstrating consumer resilience despite ongoing macroeconomic uncertainty. US consumer spending rose more than expected in March, supported in part by higher gasoline prices and broader spending due to tax refunds.
The digital payments network, which operates in more than 200 countries and territories facilitating billions of daily transactions, saw its payments volume, a key indicator of consumer and business spending, rise 9 percent in the second quarter. Visa’s strong business model, driven by a reliance on transaction volume rather than credit risk, helps offset soft costs at lower revenue levels. Data processing revenue also rose 18 percent from last year to $5.54 billion. “Consumer spending remained stable, and our strategy and innovation drove strong performance,” noted Chief Executive Ryan McInerney. This positive trend follows American Express, which also beat profit estimates last week.
While cross-border volume growth moderated to 12% on a constant dollar basis from 13% a year ago, the indicators, which serve as a real-time gauge of global trade and travel, are closely watched. Mr McInerney confirmed the company was monitoring the impact of tensions in the Middle East. Looking ahead, Visa’s board has authorized a new multi-year share repurchase program of $20 billion and boosted its full-year 2026 earnings per share for the growth of the younger generation. The company is also actively expanding into digital payment rails, with its stablecoin settlement volume now at a $7 billion annual run rate, demonstrating significant growth and further support for bringing stablecoin-linked cards to more than 100 countries.
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