Visa beats first-quarter profit estimates as holiday sales boost payment volumes

Jan 29 (Reuters) – Visa exceeded estimates for first-quarter profit on Thursday, buoyed by increased card usage during the holiday season amid resilient U.S. consumer spending in the last three months of 2025.

Higher-income households were the primary drivers, with the holidays seeing record shoppers and a surge in online sales.

Visa’s services are used by billions worldwide for everyday purchases, making it a barometer for economic health.

Lower and middle-income households had limited ability to substitute purchases, however, as U.S. President Donald Trump’s tariffs raised prices for consumers.

Global payment volumes, a gauge of overall consumer and business spending on Visa’s network, jumped 8% on a constant-dollar basis in the reported quarter.

Peer Mastercard also reported strong results in the quarter, as resilient spending on travel, leisure and everyday ​essentials boosted transaction volumes for the payment processor.

However, Visa’s cross-border total volumes grew at a slightly slower pace of 12% in the first quarter, compared with the year-ago period.

Shares of the company were down 1.7% in extended trading. Visa’s stock gained nearly 11% in 2025, outperforming Mastercard but lower than American Express and broader market returns.

American Express is scheduled to report quarterly results on Friday morning.

Visa’s cross‑border metrics – a real‑time proxy for global trade and travel, a focus point for markets since Trump’s “Liberation Day” tariff announcements last year – are closely watched by analysts and economists.

In the last quarter, Visa’s finance chief Chris Suh said in an interview with Reuters that the company had not seen a meaningful impact from tariffs.

Its adjusted net income came in at $6.1 billion, or $3.17 per share, in the three months ended December 31. That compares with $5.5 billion, or $2.75 per share, a year earlier.

Analysts were expecting a profit of $3.14 apiece, according to estimates compiled by LSEG.

(Reporting by Pritam Biswas in Bengaluru; Editing by Pooja Desai and Alan Barona)