Visa Q2 2025 slides: revenue up 9%, announces $30B share repurchase program

Visa Inc . (NYSE:V) reported its fiscal second quarter 2025 financial results on April 29, showing continued growth across key metrics while announcing a significant new share repurchase program. The payment technology giant saw its stock rise 1.19% to $345.21 in after-hours trading following the release.

Quarterly Performance Highlights

Visa delivered net revenue of $9.6 billion in Q2 FY2025, representing a 9% year-over-year increase on a GAAP nominal-dollar basis. On an adjusted constant-dollar basis, which excludes the impact of foreign currency fluctuations and acquisitions, revenue growth was 11%.

The company reported GAAP earnings per share of $2.32, up just 1% year-over-year, significantly impacted by a $1 billion litigation provision. Non-GAAP earnings per share, which excludes this provision and other one-time items, increased 10% to $2.76.

As shown in the following summary of Q2 results:

Key business drivers showed healthy growth during the quarter. Payments volume increased 8% on a constant-dollar basis, while cross-border volume excluding intra-Europe grew 13%. Processed transactions rose 9% compared to the same period last year.

The following chart details these key business metrics:

Detailed Financial Analysis

Visa’s revenue growth was balanced across its major segments. Service revenue increased 9% to $4.4 billion, data processing revenue grew 10% to $4.7 billion, and international transaction revenue rose 10% to $3.3 billion. Other revenue showed particularly strong growth of 24% to $937 million. These gains were partially offset by a 15% increase in client incentives to $3.7 billion.

The revenue breakdown is illustrated in this chart:

Total (EPA:TTEF) operating expenses increased 22% year-over-year to $4.16 billion, primarily due to a $1 billion litigation provision. Excluding this provision, non-GAAP operating expenses grew 7%, reflecting Visa’s continued investments in technology and business development.

Notable expense increases included network and processing (up 18%) and depreciation and amortization (up 22%), while general and administrative expenses decreased 8%.

Visa’s global network continues to expand, with total cards reaching 4.8 billion as of Q1 FY2025 (the latest data available), up from 4.5 billion in the prior year. This includes 1.4 billion credit cards and 3.4 billion debit cards.

Strategic Initiatives & Capital Allocation

Visa maintained its strong cash position with $15.2 billion in cash, cash equivalents, and investment securities as of March 31, 2025. The company generated free cash flow of $4.37 billion during the quarter and $9.42 billion for the first half of fiscal 2025.

The company returned significant capital to shareholders, with $4.47 billion in share repurchases and $1.16 billion in dividends during Q2, totaling $5.6 billion. In a major announcement, Visa’s board of directors authorized a new $30 billion multi-year share repurchase program, signaling confidence in the company’s future prospects.

The following chart details Visa’s free cash flow and capital returns:

On March 27, 2025, Visa deposited $375 million into its litigation escrow account to protect the company and Class A shareholders from liabilities in certain litigation cases. This action has the same economic effect as repurchasing Class A common stock at a volume-weighted average price of $346.79.

Forward-Looking Statements

Visa provided an optimistic outlook for the remainder of fiscal 2025. For the third quarter, the company expects low double-digit net revenue growth, low double-digit operating expense growth, and high-teens diluted earnings per share growth on an adjusted constant-dollar basis.

For the full fiscal year 2025, Visa projects low double-digit net revenue growth, high single-digit to low double-digit operating expense growth, and low-teens earnings per share growth.

This guidance represents a slight moderation from Q1 FY2025 performance, when Visa reported 10% year-over-year revenue growth and 14% EPS growth. However, the company’s consistent performance across key metrics and significant capital return program suggest management remains confident in Visa’s long-term growth trajectory despite ongoing macroeconomic challenges.

The payment technology leader continues to benefit from the global shift toward digital payments, with particularly strong growth in cross-border transactions as international travel recovers. With 4.8 billion cards in circulation and a robust technology infrastructure, Visa remains well-positioned to capitalize on the continuing evolution of global commerce.

Full presentation:

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