Visa signals momentum in value-added services with 26% revenue growth as digital and AI initiatives advance

Earnings Call Insights: Visa Inc. (V) Q3 2025

Management View

CEO Ryan McInerney highlighted that “we delivered net revenue of $10.2 billion, up 14% year-over-year, and EPS up 23% year-over-year.” He emphasized robust payment volume growth, with international payments volume up 10% and cross-border volume, excluding intra-Europe, up 11%. McInerney detailed the ongoing evolution of Visa-as-a-service, product innovation in AI and stablecoins, and global expansion of their Flex Credential, noting the Klarna Card launch in the U.S. and Europe and inaugural clients in Vietnam, the Philippines, and Bangladesh. “We have more than 30 partners testing [Visa Intelligent Commerce] in our live sandbox, and we will soon enter the live transaction pilot phase, with general availability to follow later this year.”
McInerney described Tap to Pay penetration reaching 78% of face-to-face transactions globally and Tap to Phone adding a record 3 million transacting devices for the quarter. He reported partnerships and renewals with major banks globally, including Absa, HDFC, and Axis Bank, and highlighted new launches such as Visa Infinite Privilege in Brazil and Canada.
On stablecoins, McInerney stated, “We have been active in this space for almost a decade and believe that stablecoins can solve important payments problems for certain use cases.” He cited partnerships and pilots, including deployments with Bridge, Rain, and Yellow Card, expansion of euro-backed and other regulated stablecoins, and support for additional blockchains.
CFO Christopher Suh stated, “Visa reached a record $10.2 billion in quarterly net revenue in our third quarter, up 14% year-over-year, better than expected driven by lower incentives, a lower FX headwind and higher value-added services revenue.” Suh noted accelerating growth in value-added services, up 26% year-over-year in constant dollars, and strong EPS performance.

Outlook

Suh outlined expectations for Q4: “Our adjusted net revenue expectations are unchanged, in the high single digits to low double digits. On a nominal basis, this puts Q4 net revenue growth generally in line with first half of FY ’25 nominal net revenue growth, which was about 10%.” He added, “We expect adjusted fourth quarter EPS growth to be in the high single digits.” Full-year guidance remains unchanged except for nonoperating income, now expected to be about $250 million.
Management indicated that net revenue growth and EPS growth for the full year are now expected to be stronger than previously anticipated due to year-to-date performance.

Financial Results

Visa reported net revenue of $10.2 billion for Q3, up 14% year-over-year, and EPS of $2.98, up 23% over last year. Value-added services revenue was $2.8 billion, with growth accelerating to 26% year-over-year in constant dollars. Commercial and money movement solutions revenue rose 13% year-over-year in constant dollars.
Data processing revenue grew 15% versus 10% processed transaction growth, international transaction revenue was up 14%, and other revenue grew 32% driven by advisory and value-added services. Client incentives grew 13%, lower than expected due to deal timing and onetime reductions.
The company bought back approximately $4.8 billion in stock and distributed $1.2 billion in dividends during the quarter, with $29.8 billion remaining in its buyback authorization.

Q&A

Harshita Rawat, Bernstein: Asked about Q4 guidance and deceleration from Q3. Suh responded that Q4 guide reflects lapping of prior year onetime impacts and strong VAS quarter related to the Summer Olympics, and that “Q3 was a very strong quarter driven by strong drivers, higher currency volatility, strong VAS and lower incentives.”
Tien-Tsin Huang, JPMorgan: Questioned investment priorities and OpEx trends in light of AI and stablecoin focus. McInerney responded there is “no change from what I’ve been talking about publicly. We have a deep and rich product pipeline.”
Trevor Williams, Jefferies: Asked about the spread between international transaction fees and cross-border volume. Suh explained that mix and hedging offset higher currency volatility, with U.S. inbound travel being a higher-yielding corridor impacted by Canada to U.S. volume.
Timothy Chiodo, UBS: Inquired about Visa Direct use cases and pricing. McInerney stated Visa Direct “has really scaled in a meaningful way” and pricing varies by vertical and geography.
William Nance, Goldman Sachs: Sought clarity on stablecoins in remittances. McInerney said stablecoins could provide “faster cross-border transactions” and offer value to end users and clients.

Sentiment Analysis

Analyst questions focused on guidance deceleration, OpEx growth, stablecoin opportunities, and pricing strategies, reflecting a slightly positive but probing tone as analysts sought clarification on sustainability and drivers of recent growth.
Management maintained a confident and consistent tone during both prepared remarks and Q&A. McInerney and Suh repeatedly emphasized momentum, resilience, and diversification, with phrases like “we feel great about the momentum” and “good progress, good momentum.”
Compared to the previous quarter, both analysts and management maintained stable sentiment, with management slightly more upbeat as reflected in stronger-than-expected results.

Quarter-over-Quarter Comparison

Net revenue growth accelerated to 14% year-over-year from 9% in Q2, and value-added services growth increased to 26% from 22%. EPS growth jumped to 23% from 10% last quarter.
Guidance language remained steady, with Q4 and full-year targets unchanged, but now indicating expectations for stronger-than-previously-anticipated growth.
Strategic focus expanded on AI, stablecoins, and global digital product launches, while analysts continued to probe sustainability and pricing.
Management’s confidence in innovation and diversification increased, with more detailed commentary on product launches and digital initiatives.

Risks and Concerns

Management noted continued uncertainty in consumer spending, potential impacts from currency volatility, and the importance of adapting to macroeconomic conditions.
Suh acknowledged higher-than-expected OpEx in Q3 due to lower FX benefit and personnel costs, but stated these were offset by investment income.
Analyst concerns included deceleration in Q4 guidance, sustainability of pricing and yield dynamics, and the impact of currency and cross-border trends.

Final Takeaway

Visa’s third quarter showcased robust growth across payments, cross-border, and value-added services, driven by digital innovation and strong client engagement. The company maintains confidence in its diversified model and expects full-year revenue and EPS growth to surpass earlier expectations. Initiatives in AI, stablecoins, and global product expansion remain priority areas, positioning Visa for continued leadership amid evolving digital commerce and payments trends.

Read the full Earnings Call Transcript