Visa Inc. (V) said Wednesday its profit for the second quarter dropped two percent from last year, due mainly to the absence of a tax benefit recorded in the year-ago period. Revenues grew fifteen percent on broad-based growth as more people swiped its cards, with growth across service, data processing and international transaction segments.
Excluding items, adjusted earnings increased seventeen percent from last year and easily topped Wall Street estimates, as did revenues.
Visa's service revenues, which are recognized based on payments volume in the prior quarter, grew 10 percent from last year to $1.4 billion.
Revenue streams based on second-quarter activity, data processing revenues rose 25 percent to $1.2 billion from a year ago, while international transaction revenues grew 13 percent to $831 million.
Client incentives, which are a contra revenue item, were $567 million for the quarter, and represented 16 percent of gross revenues.
Payments volume, on a constant dollar basis, for the quarter rose 9 percent from a year ago to $1 trillion. Visa processed 13.9 billion transactions during the quarter, up 6 percent from last year.
The world's largest payment card processing network reported total quarterly revenues of $2.96 billion, compared to $2.58 billion last year. On average, 30 analysts polled by Thomson Reuters estimated revenues of $2.85 billion for the quarter.
The San Francisco, California-based company posted quarterly net income of $1.27 billion, down from $1.29 billion a year ago. However, on a per Class A share basis, earnings were higher at $1.92, compared to $1.91, on a lower share count.
Results for the prior-year quarter included a non-cash benefit of $208 million related to the re-measurement of net deferred tax liabilities. Excluding this, earnings for that period would have been $1.08 billion or $1.60 per class A share.
Thirty-one analysts had consensus earnings estimate of $1.81 per share for the quarter. Analysts' estimates typically exclude special items.
During the quarter, Visa repurchased 12 million shares for $1.8 billion, with a balance of $1 billion in remaining authorization.
For fiscal 2013, Visa continues to expect net revenue growth in the low double digits. It now estimates class A common stock earnings per share growth of about 20 percent in the year, compared to prior estimate of growth in high teens.
In March, media reports said Visa could be forced to buy the Visa Europe payments system, under a plan being discussed by the European banks that own the business.
Earlier today, rival MasterCard Inc. (MA) reported a 12 percent rise in quarterly profit, on higher card processing volumes. Earnings topped analysts' estimates, while revenues missed expectations.
Visa stock closed Wednesday at $166.02, down 1.45%, on a volume of about 3 million shares on the NYSE. In after hours, the stock gained $3.48 or 2.10. In the past year, the stock has traded in a range of $111.94 - $170.99.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.