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Visa profit surges on resilient spending
29 Apr
Summary
- Visa's profit exceeded expectations due to steady payment volume growth.
- Company reported a 9% jump in payment volume for the second quarter.
- Visa expanded stablecoin collaborations, seeing significant settlement volume.
Visa announced Tuesday that it surpassed profit expectations, attributing its success to a consistent rise in payment volumes amidst prevailing macroeconomic uncertainties. The company's payment volume saw a significant 9% increase in the second quarter, reflecting resilient consumer and business spending on its network.
Data processing revenue grew by 18% year-over-year, contributing to adjusted net income of $6.3 billion, or $3.31 per share. This performance outpaced analyst expectations, with the company also raising its full-year 2026 earnings per share guidance to low-teens.
Further bolstering its future outlook, Visa is actively expanding its involvement in stablecoin technology. The company has broadened its collaboration with stablecoin platforms, aiming to introduce stablecoin-linked cards globally. Visa reported a $7 billion annual run rate for stablecoin settlement volume, a figure that has grown by over 50% since the previous quarter.
In addition to its financial and technological advancements, Visa's board authorized a new $20 billion multi-year share repurchase program. The company is also leveraging major upcoming events like the Olympics and FIFA World Cup as opportunities for growth and sponsorship expansion.
