Visa delivered a solid second quarter of fiscal 2025, underpinned by durable consumer spending and a diversified growth engine mix. Net revenue rose 9% year over year to $9.594 billion, with EPS up 10% on a non-GAAP basis to $2.76 per share, driven by stable operating performance and a tax rate of 16.9%. Global payments volume rose 8% in constant dollars, with cross-border volume up 13% year over year, and process transactions up 9%, signaling continued resilience in both domestic and international markets despite macro volatility and FX headwinds.
Strength across growth engines was evident: value-added services (VAS) revenue climbed 22% in constant dollars to $2.6 billion, issuing and advisory components remained solid, and Visa Direct transactions surged 28% year over year to 3 billion. The company also highlighted meaningful progress in Tap to Everything, Tap to Pay, and stablecoin settlement capabilities, alongside rapid expansion of the Visa as a Service stack. Cash flow remained robust, with net cash from operating activities of $4.695 billion, free cash flow of $4.368 billion, and a refreshed capital-allocation plan including a new $30 billion multi-year buyback authorization.
Management provided modestly constructive near-term guidance: Q3 adjusted net revenue expected to grow in the low double digits and adjusted EPS growth in the high-teens, with operating-expense growth in the low-double digits and a tax rate of 17-17.5%. The full-year guidance remains unchanged, underscoring Visa’s confidence in its diversified model and its ability to navigate geopolitical and macroeconomic uncertainty. Investors should monitor cross-border dynamics (FX, Ramadan/Easter timing, and currency moves), incentives cadence, and the pace of VAS/AI-enabled product adoption as key drivers of the outlook.