Visa Q3 adjusted profit tops estimates on record cross-border volume growth

Overview

• U.S. digital payments firm's fiscal Q3 net revenue rose 14% yr/yr, driven by volume growth

• Adjusted EPS for fiscal Q3 beat analyst expectations

• Company repurchased $4.9 bln in shares during the quarter

Outlook

• Visa did not provide specific guidance for the current or upcoming periods

Result Drivers

• VOLUME GROWTH - Co said net revenue growth was driven by increases in payments volume, cross-border volume and processed transactions

• CROSS-BORDER ACTIVITY - Cross-border volume excluding intra-Europe rose 12% yr/yr, supporting international transaction revenue

• DATA PROCESSING REVENUE - Data processing revenue increased 17% yr/yr to $6.0 bln, contributing to overall revenue growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 42 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Visa Inc is $410.00, about 13.1% above its July 27 closing price of $362.53

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads

• July 28 - Visa to lay off 7% of staff as efficiency push deepens

• July 28 - PayPal presses on with turnaround in pivotal quarter as sale questions linger

• July 28 - TransUnion beats Q2 revenue estimates, raises 2026 revenue growth outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)