Holiday season strong consumption drive payment amount increase! Visa (V.US) Q1 performance exceeds expectations, reiterates full-year "double-digit" growth target.

Visa (V.US) reported earnings that exceeded analysts' expectations, driven by strong holiday spending, with payment volume surging 8% compared to the same period last year. The financial report showed that Visa's adjusted earnings for the first quarter of fiscal year 2026 were $3.17 per share, a 15% increase from the same period last year, surpassing the average expectation of $3.14 per share. Revenue also increased by 14.6% year-on-year to $10.9 billion, exceeding expectations as well. The credit card network giant reaffirmed its expectations for earnings per share, net income, and operating expense growth in the low double-digit percentage range for fiscal year 2026. After the earnings announcement, Visa's stock fell 1.33% in after-hours trading. During this quarter, Visa processed a total payment volume of $3.87 trillion, exceeding the consensus expectation of $3.83 trillion, and higher than the $3.73 trillion in the fourth quarter of 2025 and $3.52 trillion in the first quarter of 2025. Total transaction volume grew by 9% year-on-year to 694 billion, slightly lower than the expected 697 billion. For the three months ending on December 31, 2025, cross-border transaction volume excluding transactions within Europe (a significant source of international transaction revenue) increased by 11% compared to the same period last year at fixed exchange rates. Total cross-border transaction volume increased by 12% at fixed exchange rates compared to the same period last year. CEO Ryan McInerney stated in a release that the revenue growth was driven by resilient consumer spending, strong holiday season, and continued strength in value-added services, commercial, and money movement solutions. In December, the company expanded its services, stating that it would open its U.S. network to settle stablecoin transactions. With the Trump administration providing more regulatory clarity, Visa and its peers have been seeking ways to enter the stablecoin market. Visa's competitor Mastercard also witnessed strong spending in the three months ending in December, resulting in adjusted net profits higher than analysts' average expectations. Both payment companies reached an agreement with merchants in November regarding card payment acceptance fees, although it is unclear whether the $200 billion agreement is sufficient to address this long-standing issue. Visa announced on Wednesday that it will allow its credit card holders to contribute reward points to a new children's savings account established by the U.S. President Trump. McInerney stated that this is a "simple yet powerful way" to help families save for their children's future.