Visa (NYSE:V) shares slipped slightly in early U.S. trading on Wednesday after the payments firm maintained its full-year guidance despite reporting better-than-expected results for the third quarter.
Alongside competitor MasterCard, Visa is often seen as a key indicator of U.S. consumer confidence amid ongoing economic uncertainty fueled by tariffs. Concerns have mounted that these levies could push inflation higher, slow economic growth, and lead consumers to tighten their spending.
Nevertheless, Visa emphasized that the consumer spending landscape remains “resilient, with continued strength in discretionary and non-discretionary growth in the U.S.”
For the quarter ending June 30, Visa posted adjusted earnings per share of $2.98 on revenues of $10.2 billion, beating Wall Street projections of $2.84 and $9.84 billion, respectively.
Net revenue grew 14% compared to the prior year, supported by increased payments volume and cross-border transactions. Payments volume rose 8%, total cross-border volume was up 12%, and processed transactions increased 10%.
“Healthy business driver trends continued through the quarter and into the first few weeks of July,” Visa said.
Despite the positive performance, the company chose not to revise its annual outlook, forecasting low-double-digit net revenue growth, a high-single-digit to low-double-digit rise in operating expenses, and a diluted earnings per share increase in the low teens.
“[T]he unchanged guide despite the fiscal third-quarter beat is a modest disappoint[ment],” Vital Knowledge analysts noted in a report.
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