Visa Inc. saw its stock climb 4.1% in after-hours trading Tuesday, fueled by a fiscal second-quarter earnings beat and the announcement of a fresh $20 billion stock repurchase program. The payments giant reported adjusted earnings per share of $3.31, surpassing the analyst consensus of $3.10 tracked by Bloomberg.
Net revenue rose 17% year over year to $11.2 billion, marking the fastest growth pace since 2022. On a constant-currency basis, revenue increased 16%. The company's GAAP net income came in at $6.0 billion, or $3.14 per share, while adjusted net income reached $6.3 billion.
Key operating metrics showed broad strength. Payments volume grew 9%, and processed transactions on Visa's network also rose 9% to 66.1 billion. Cross-border volume increased 12% overall, or 11% excluding intra-European activity. Chief Executive Ryan McInerney noted that "consumer spending remained resilient," highlighting gains across consumer payments, commercial and money-movement solutions, and value-added services.
Capital returns were a major focus. Visa returned $9.2 billion to shareholders during the quarter through buybacks and dividends, including $7.9 billion used to repurchase approximately 25 million Class A shares. The board also declared a quarterly dividend of 67 cents per share, payable on June 1 to holders of record by May 12.
Revenue components all showed gains. Service revenue increased 13% to $5.0 billion, data-processing revenue jumped 18% to $5.5 billion, and international transaction revenue rose 10% to $3.6 billion. Client incentives, which are rebates and payments to banks and merchants, grew 14% to $4.2 billion.
Visa's results come amid a mixed picture for rivals. American Express recently beat profit forecasts, benefiting from affluent cardholder spending, while Mastercard, Visa's main competitor, is set to report later this week. Visa's report is closely watched because its payment volumes provide an early read on consumer spending trends.
Looking ahead, Visa guided for net revenue growth in the low double digits for the fiscal third quarter. For the full year, on an adjusted constant-dollar basis, the company expects low double-digit to low-teens revenue growth and adjusted EPS growth in the low teens. However, the Q3 outlook calls for adjusted EPS growth in the mid- to high-single-digit range, a moderation from Q2's pace.
Risks remain. A slowdown in travel or trade could pressure cross-border volumes, which serve as real-time indicators of global commerce. Visa also cited regulatory and legal challenges, cybersecurity threats, competitive pressures, and broader economic or political shocks. During the quarter, the company recorded a $311 million litigation charge related to interchange fees.
Despite these headwinds, investors focused on the strong volume growth, accelerating revenue, and expanded buyback capacity. The real test will come in the third quarter, as Visa's earnings growth rate is expected to slow from the robust levels achieved in Q2.
