(Reuters) -Visa beat Wall Street estimates for third-quarter profit and revenue on Tuesday, as the global payments processing company was helped by strong card spending volumes despite softness in the broader economy.
However, the payments processing company kept its full-year forecast for net revenue growth unchanged, sending shares of the company down nearly 3% in extended trading.
Consumers have continued to use card payments for essential purchases, even as they rein in discretionary spending amid economic uncertainties spurred by U.S. President Donald Trump’s trade policies and geopolitical tensions.
Analysts expect a potential spending slowdown in the back half of 2025 as consumers front-load expenses on products they expect to become costlier once tariffs take effect.
“US payment volumes accelerated in July, which is a positive. However, not upping the fiscal year guide following a strong third quarter could weigh on stock,” said Dan Dolev, Managing Director at Mizuho.
Visa maintained its forecast of annual net revenue growth in the low single digits for fiscal year 2025.
The company’s services are used by billions of people globally for everyday purchases, making the card network better positioned to withstand economic downturns.
Global payment volume, a gauge of overall consumer and business spending on Visa’s network, jumped 8% on a constant dollar basis in the quarter ended June 30.
However, the shifting U.S. tariff policies may be weighing on cross-border payments growth, with the volume of such transactions growing 12% in the third quarter, slower than the 14% rise reported last year.
Quarterly net revenue rose 14% to $10.17 billion, surpassing analysts’ estimates of $9.84 billion, according to data compiled by LSEG.
Visa reported adjusted earnings of $2.98 per share for the three months ended June 30, also beating estimates of $2.85 per share.
Its stock has gained nearly 11% this year as of last close, outpacing both its rivals, Mastercard and American Express.
American Express, which generally caters to affluent customers, also beat estimates for quarterly profit earlier this month. Mastercard is set to report its earnings later in the week.
(Reporting by Pritam Biswas and Ateev Bhandari in Bengaluru; Editing by Leroy Leo)
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