Visa posted 14% revenue growth as consumer and business spending held up

Visa $V reported fiscal third-quarter results on Tuesday, showing net revenue of $11.6 billion, a 14% increase over the prior year, driven by growth in payments volume, cross-border volume, and processed transactions. GAAP net income for the quarter ended June 30 was $5.

6 billion, or $2.97 per share, up 7% and 10%, respectively, from the prior year. Excluding special items, non-GAAP net income was $6.

3 billion, or $3.32 per share, increases of 8% and 11% over the prior year. Payments volume grew 10% on a constant-dollar basis for the three months ended June 30.

Total processed transactions reached 71.7 billion, a 10% increase over the prior year. Cross-border volume excluding transactions within Europe rose 12% on a constant-dollar basis, while total cross-border volume increased 13%.

Data processing revenue rose 17% over the prior year to $6.0 billion, while service revenue grew 14% to $4.9 billion.

International transaction revenue grew 6% to $3.9 billion, and other revenue rose 45% to $1.5 billion.

Client incentives were $4.7 billion, up 18% over the prior year. GAAP operating expenses were $4.

8 billion for the quarter, a 19% increase over the prior year, driven by higher personnel costs. Current-quarter results included $563 million in severance costs and a $237 million litigation provision tied to the interchange multidistrict litigation case, among other special items. "Consumer and business spending remains resilient, and our strategy continues to deliver strong performance across consumer payments, commercial and money movement solutions and value-added services," Chief Executive Officer Ryan McInerney said in a statement.

Visa returned $6.2 billion to shareholders through share repurchases and dividends during the quarter. The company repurchased approximately 14.

5 million shares of Class A common stock at an average cost of $330.71 per share, totaling $4.9 billion, and had $28.

4 billion in remaining authorized funds for share repurchases as of June 30. The board also declared a quarterly cash dividend of $0.670 per share, payable September 1 to holders of record as of August 11.

The earnings report came on the same day Visa announced plans to eliminate roughly 2,600 jobs, or about 7% of its total workforce, with cuts falling on technology and product teams. McInerney said artificial intelligence is helping to accelerate the transition and shape how work gets done at the company. Cash, cash equivalents, and investment securities totaled $13.

9 billion as of June 30.