Visa Reports Fiscal Second Quarter 2025 Results

• GAAP net income of $4.6B or $2.32 per share and non-GAAP net income of $5.4B or $2.76 per share.

• Net revenue of $9.6B, an increase of 9%, or 11% on a constant-dollar basis.

• Growth in payments volume, cross-border volume and processed transactions was strong.

• Share repurchases and dividends of $5.6B.

• The board of directors authorized a new $30.0B multi-year share repurchase program.

Income Statement Summary

Key Business Drivers

Ryan McInerney, Chief Executive Officer, Visa, commented on the results:

“Visa’s strong 9% fiscal second quarter net revenue growth was driven by healthy trends in payments volume, cross-border volume and processed transactions. Consumer spending remained resilient, even with macroeconomic uncertainty. Our strategy across consumer payments, commercial and money movement solutions and value-added services, our diversified business model, and our focus on innovation position us well for the rest of the fiscal year and beyond.”

Fiscal Second Quarter 2025 — Financial Highlights

GAAP net income in the fiscal second quarter was $4.6 billion or $2.32 per share, a decrease of 2% and an increase of 1%, respectively, over prior year’s results. Current year’s results included a special item of $992 million for a litigation provision associated with the interchange multidistrict litigation (“MDL”) case. Current year’s results also included $23 million of net losses from equity investments and $96 million from the amortization of acquired intangible assets and acquisition-related costs. Prior year’s results included special items of $424 million for a litigation provision associated with the MDL case and other legal matters and $57 million for lease consolidation costs. Prior year’s results also included $30 million of net losses from equity investments and $69 million from the amortization of acquired intangible assets and acquisition-related costs. Excluding these items and related tax impacts, non-GAAP net income for the quarter was $5.4 billion or $2.76 per share, increases of 6% and 10%, respectively, over prior year’s results (refer to Non-GAAP Financial Measures for further details). GAAP earnings per share growth was approximately 3% on a constant-dollar basis, which excludes the impact of foreign currency fluctuations against the U.S. dollar. Non-GAAP earnings per share growth was approximately 11% on a constant-dollar basis. All references to earnings per share assume fully diluted class A share count.

Net revenue in the fiscal second quarter was $9.6 billion, an increase of 9%, driven by the year-over-year growth in payments volume, cross-border volume and processed transactions. Net revenue increased 11% on a constant-dollar basis.

Payments volume for the three months ended December 31, 2024, on which fiscal second quarter service revenue is recognized, increased 9% over the prior year on a constant-dollar basis.

Payments volume for the three months ended March 31, 2025 increased 8% over the prior year on a constant-dollar basis.

Cross-border volume excluding transactions within Europe, which drives our international transaction revenue, increased 13% on a constant-dollar basis for the three months ended March 31, 2025. Total cross-border volume on a constantdollar basis increased 13% in the quarter.

Total processed transactions, which represent transactions processed by Visa, for the three months ended March 31, 2025, were 60.7 billion, a 9% increase over the prior year.

Fiscal second quarter service revenue was $4.4 billion, an increase of 9% over the prior year, and is recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenue rose 10% over the prior year to $4.7 billion. International transaction revenue grew 10% over the prior year to $3.3 billion. Other revenue of $937 million rose 24% over the prior year. Client incentives were $3.7 billion, up 15% over the prior year.

GAAP operating expenses were $4.2 billion for the fiscal second quarter, a 22% increase over the prior year’s results, primarily driven by an increase in the litigation provision. GAAP operating expenses included the special items as well as the amortization of acquired intangible assets and acquisition-related costs in the current and prior year. Excluding these items, non-GAAP operating expenses increased 7% over the prior year, primarily driven by increases in personnel, marketing and depreciation and amortization expenses.

GAAP non-operating income was $3 million for the fiscal second quarter, including $23 million of net equity investment losses. Excluding this item, non-GAAP non-operating income was $26 million.

GAAP effective income tax rate was 15.8% for the quarter ended March 31, 2025. Excluding the related tax impacts from the non-GAAP items noted above, the non-GAAP effective income tax rate was 16.9% for the quarter ended March 31, 2025.

Cash, cash equivalents and investment securities were $15.2 billion at March 31, 2025.

The weighted-average number of diluted shares of class A common stock outstanding was 1.97 billion for the quarter ended March 31, 2025.

Other Notable Items

On March 27, 2025, Visa deposited $375 million into its litigation escrow account, which was previously established under the Company’s U.S. retrospective responsibility plan to insulate the Company and class A common stockholders from financial liability for certain litigation cases. This deposit has the same economic effect on earnings per share as repurchasing the Company’s class A common stock as it reduces each of the as-converted class B-1 common stock and class B-2 common stock share counts at a volume weighted average price of $346.79.

During the three months ended March 31, 2025, Visa repurchased approximately 13 million shares of class A common stock at an average cost of $340.26 per share for $4.5 billion. The Company had $4.7 billion of remaining authorized funds for share repurchases as of March 31, 2025.

In April, the board of directors authorized a new $30.0 billion multi-year class A common stock share repurchase program. The board of directors also declared a quarterly cash dividend of $0.590 per share of class A common stock (determined in the case of all other outstanding common and preferred stock on an as-converted basis) payable on June 2, 2025, to all holders of record as of May 13, 2025.

Forward-Looking Statements

Our earnings release and related materials contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that relate to, among other things, our future operations, prospects, developments, strategies, business growth, anticipated timing and benefits of our acquisitions, and financial outlook. Forward-looking statements generally are identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “projects,” “outlook,” “could,” “should,” “will,” “continue” and other similar expressions. All statements other than statements of historical fact could be forward-looking statements, which speak only as of the date they are made, are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond our control and are difficult to predict.

Actual results could differ materially from those expressed in, or implied by, our forward-looking statements due to a variety of factors, including, but not limited to:

• impact of complex and evolving global regulations;

• increased scrutiny and regulation of the global payments industry;

• impact of government-imposed obligations and/or restrictions on international payments systems;

• impact of laws and regulations regarding the handling of personal data, including privacy, cybersecurity and AI;

• impact of tax examinations or disputes, or changes in tax laws;

• outcome of litigation or investigations;

• intense competition in our industry;

• dependence on our client and merchant base, which may be costly to win, retain and develop;

• continued push to lower acceptance costs and challenge industry practices;

• dependence on relationships with financial institutions, acquirers, processors, merchants, payment facilitators, ecommerce platforms, fintechs and other third parties;

• our inability to maintain and enhance our brand;

• impact of global economic, political, market, health and social events or conditions;

• our aspirations to address corporate responsibility and sustainability matters and considerations;

• exposure to significant risk of loss or reduction of liquidity due to our indemnification obligation to fund settlement losses of our clients;

• failure to anticipate, adapt to, or keep pace with, new technologies in the payments industry;

• a disruption, failure or breach of our networks or systems, including as a result of cyber incidents or attacks;

• risks, uncertainties and the failure to achieve the anticipated benefits of our acquisitions, joint ventures or strategic investments;

• the conversions of our class B-1, B-2 and class C common stock or series A, B and C preferred stock into shares of class A common stock would result in voting dilution to, and could adversely impact the market price of, our existing class A common stock;

• differing interests between holders of our class B-1, B-2 and C common stock and series A, B and C preferred stock compared to our class A common stock concerning certain significant transactions; and -other factors described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended September 30, 2024, and any subsequent reports on Forms 10-Q and 8-K.

Except as required by law, we do not intend to update or revise any forward-looking statements as a result of new information, future events or otherwise.