Visa (V) delivered a solid performance in its fiscal second quarter of 2025, demonstrating strength across its core business lines despite ongoing macroeconomic volatility. Net revenue reached $9.6 billion, representing a 9% year-over-year increase in nominal terms and 11% in constant dollars, reflecting healthy growth in payments activity and services. While net income dipped slightly to $4.58 billion, a 2% decline from the prior year largely tied to elevated litigation provisions, earnings per share remained resilient. GAAP diluted EPS rose 1% to $2.32, and non-GAAP EPS jumped 10% to $2.76, showcasing underlying earnings strength.
Operating performance remained robust. Processed transactions climbed 9% to 60.7 billion, and payments volume grew 8% in constant dollars, with broad-based strength across U.S. and international markets. Cross-border volume (excluding intra-Europe) surged 13%, continuing to outpace pre-pandemic levels despite seasonal and currency-related drag. Notably, value-added services revenue grew 22% to $2.6 billion, driven by strong demand for advisory, issuing solutions, and contributions from Featurespace, which Visa acquired for $946 million in December 2024 to enhance AI-driven fraud prevention capabilities.
Despite higher operating expenses of $4.16 billion—a 22% increase primarily from a $1.0 billion litigation provision—Visa’s operating income still rose to $5.44 billion, reflecting solid cost discipline elsewhere. The company maintained a favorable effective tax rate of 16.9%, supported by geographic mix and one-time benefits.
Visa also continued its aggressive capital return strategy, repurchasing $4.5 billion in shares during the quarter and paying $2.3 billion in dividends in the first half of the fiscal year. A new $30 billion multi-year buyback program was authorized in April, underscoring confidence in long-term growth. Operating cash flow reached $10.1 billion for the six-month period, up from $8.2 billion the prior year.
Strategically, Visa continued to expand its reach in consumer payments, issuing 13.7 billion tokens globally with Tap to Pay penetration reaching 76% worldwide. In commercial and money movement, Visa Direct transactions surged 28% to 3 billion, supported by partnerships with Jack Henry and TabaPay. The company also launched new products, including a revamped Authorize.net and unified checkout tools, contributing to the momentum in its services business.
Looking ahead, Visa reaffirmed its full-year guidance, citing continued strength in consumer spending across all income levels, a growing pipeline in value-added services, and the flexibility to adjust investments as needed. While cross-border travel growth moderated due to timing factors and FX impacts, it remained above pre-COVID trends, offering another lever for sustained growth.