# Visa (V) Q3 2025 Financial Results Summary
On July 29, 2025, Visa (NYSE: V) reported its financial results for the fiscal third quarter of 2025. Below is a summary of the key metrics and highlights from the report.
## Financial Highlights
– **Net Revenue**: $10.2 billion, an increase of **14%** compared to Q3 2024 (nominal and constant-dollar basis).
– **GAAP Net Income**: $5.3 billion, representing an **8%** increase year-over-year.
– **GAAP Earnings Per Share (EPS)**: $2.69, up **12%** versus Q3 2024.
– **Non-GAAP Net Income**: $5.8 billion, reflecting a **19%** increase year-over-year.
– **Non-GAAP EPS**: $2.98, a **23%** increase from the same quarter last year.
### Key Metrics
– **Payments Volume**: Increased by **8%** compared to the prior year on a constant-dollar basis.
– **Cross-Border Volume Excluding Intra-Europe**: Increased by **11%** year-over-year.
– **Total Cross-Border Volume**: Rose by **12%** year-over-year.
– **Processed Transactions**: Increased by **10%** compared to the prior year.
### Revenue Breakdown
– **Service Revenue**: $4.3 billion, up **9%** year-over-year.
– **Data Processing Revenue**: Increased by **15%** to $5.2 billion.
– **International Transaction Revenue**: Grew by **14%** to $3.6 billion.
– **Other Revenue**: Rose **32%** to $1.0 billion.
– **Client Incentives**: Increased by **13%** to $4.0 billion.
### Operating Expenses
– **GAAP Operating Expenses**: $4.0 billion, an increase of **35%** year-over-year, primarily due to higher litigation provisions and personnel expenses.
– **Non-GAAP Operating Expenses**: Increased **13%** over the prior year.
### Cash and Shareholder Activity
– **Share Repurchases**: Visa repurchased approximately 14 million shares of Class A common stock for **$4.8 billion** at an average cost of $349.24 per share in this quarter.
– **Remaining Authorized Funds for Share Repurchases**: $29.8 billion as of June 30, 2025.
– **Quarterly Cash Dividend**: The board declared a cash dividend of **$0.590** per share, payable on September 2, 2025, to shareholders recorded as of August 12, 2025.
### Income Tax Rate
– **GAAP Effective Income Tax Rate**: 16.7%.
– **Non-GAAP Effective Income Tax Rate**: 17.3%.
### Remarks from Management
– CEO Ryan McInerney noted the sustained growth in consumer spending, driven by both discretionary and non-discretionary sectors, which supports Visa’s performance.
– McInerney emphasized Visa’s commitment to innovation and product development in areas such as artificial intelligence and stablecoins to enhance commerce experiences.
### Comparative Performance Snapshot
| Metric | Q3 2025 | % Change YoY |
|---|---|---|
| GAAP Net Income | $5.3 billion | **8%** |
| GAAP EPS | $2.69 | **12%** |
| Non-GAAP Net Income | $5.8 billion | **19%** |
| Non-GAAP EPS | $2.98 | **23%** |
| Payments Volume | **8%** increase | |
| Cross-Border Volume Total | **12%** increase | |
| Total Processed Transactions | **10%** increase | |
| Revenue | $10.2 billion | **14%** |
In conclusion, Visa has reported solid performance for Q3 2025, showing marked growth across multiple financial metrics, alongside a commitment to shareholder return through dividends and share repurchases.
# Income Statement Summary
*Amount is in millions*
| GAAP | Three Months Ended | YoY Change |
|---|---|---|
| June 30, 2025 | ||
| Service revenue | $4,330 | 9% |
| Data processing revenue | $5,153 | 15% |
| International transaction revenue | $3,633 | 14% |
| Other revenue | $1,028 | 32% |
| Client incentives | -$3,972 | 13% |
| Net revenue | $10,172 | 14% |
| Total operating expenses | $3,995 | 35% |
| Non-operating income (expense) | $156 | 208% |
| Effective income tax rate | 16.7% | -2 ppt |
| Net income | $5,272 | 8% |
| Earnings per share | $2.69 | 12% |
| Non-GAAP (1) | ||
| Total operating expenses | $3,307 | 13% |
| Non-operating income (expense) | $191 | 161% |
| Effective income tax rate | 17.3% | -1 ppt |
| Net income | $5,834 | 19% |
| Earnings per share | $2.98 | 23% |
| (1)Refer to Non-GAAP Financial Measures |
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# Visa Consolidated Balance Sheets (unaudited)
*Amount is in millions*
| June 30, 2025 | September 30, 2024 | |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | $17,092 | $11,975 |
| Restricted cash equivalents—U.S. litigation escrow | $2,696 | $3,089 |
| Investment securities | $2,088 | $3,200 |
| Settlement receivable | $4,778 | $4,454 |
| Accounts receivable | $2,920 | $2,561 |
| Customer collateral | $3,614 | $3,524 |
| Current portion of client incentives | $2,198 | $1,918 |
| Prepaid expenses and other current assets | $3,012 | $3,312 |
| Total current assets | $38,398 | $34,033 |
| Investment securities | $1,203 | $2,545 |
| Client incentives | $5,005 | $4,628 |
| Property, equipment and technology, net | $4,143 | $3,824 |
| Goodwill | $19,880 | $18,941 |
| Intangible assets, net | $27,660 | $26,889 |
| Other assets | $3,735 | $3,651 |
| Total assets | $100,024 | $94,511 |
| Liabilities | ||
| Accounts payable | $462 | $479 |
| Settlement payable | $6,038 | $5,265 |
| Customer collateral | $3,614 | $3,524 |
| Accrued compensation and benefits | $1,474 | $1,538 |
| Client incentives | $10,032 | $9,075 |
| Accrued liabilities | $4,907 | $4,909 |
| Current maturities of debt | $5,548 | $— |
| Accrued litigation | $2,352 | $1,727 |
| Total current liabilities | $34,427 | $26,517 |
| Long-term debt | $19,590 | $20,836 |
| Deferred tax liabilities | $5,755 | $5,301 |
| Other liabilities | $1,588 | $2,720 |
| Total liabilities | $61,360 | $55,374 |
| Equity | ||
| Preferred stock, $0.0001 par value, 5 shares issued and outstanding as of | $871 | $1,031 |
| Common stock, $0.0001 par value: | ||
| Class A common stock | $— | $— |
| Class B-1 and B-2 total common stock | $— | $— |
| Class C common stock | $— | $— |
| Right to recover for covered losses | -$118 | -$104 |
| Additional paid-in capital | $21,746 | $21,229 |
| Accumulated income | $15,956 | $17,289 |
| Accumulated other comprehensive income (loss): | ||
| Investment securities | $12 | $30 |
| Defined benefit pension and other postretirement plans | -$14 | -$16 |
| Derivative instruments | -$356 | -$213 |
| Foreign currency translation adjustments | $567 | -$109 |
| Total accumulated other comprehensive income (loss) | $209 | -$308 |
| Total equity | $38,664 | $39,137 |
| Total liabilities and equity | $100,024 | $94,511 |
