Visa's Q2 Results Reflect Steady US Spending Despite Market Uncertainty: Analyst Highlights Strength In Payment Volumes

RBC Capital Markets analyst Daniel R. Perlin reiterated his Outperform rating on Visa Inc. V on Wednesday, with a price forecast of $395.

On Tuesday, Visa reported second-quarter earnings of $2.76 per share, which beat the analyst consensus estimate of $2.68. Quarterly revenue came in at $9.59 billion, which beat the analyst consensus estimate of $9.55 billion.

Perlin noted that, despite ongoing market uncertainty, Visa’s results provide insight into consumer health, with adjusted U.S. spending volumes remaining steady in the fiscal second quarter and through April 28, although some category shifts and a slight slowdown in cross-border activity were observed.

Also Read: Mastercard Vs. Visa: Two Giants, One Payment War — Who’s Ready To Outperform?

While there are some minor positives and negatives, full-year 2025 guidance remains unchanged, with management prepared to adjust if the data warrants it.

Perlin pointed to three positives from Visa's results: First, payment volumes remained strong, with only a slight deceleration in fiscal Q2, and U.S. volumes improved in April, indicating steady consumer spending. Second, value-added services revenue grew 22% year over year, with gains in Pismo and Featurespace suggesting added resilience beyond spending cycles.

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Lastly, Visa announced a new $30 billion share repurchase program.

Taking the latest results and outlook into account, the analyst updated his forecasts for FY25 and FY26, maintaining revenue estimates at $39.5 billion and $43.8 billion while slightly raising adjusted EPS for FY25 to $11.30 from $11.20 and keeping FY26 EPS steady at $12.75.

Price Action: V shares are trading higher by 0.49% to $343.18 at last check on Wednesday.

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