trending
Visa has delivered a solid set of first-quarter results, comfortably exceeding market expectations as consumer spending remained resilient across its global network.
Visa and Mastercard beat expectations
Yet the numbers were not enough to placate investors, with the company’s shares sliding despite double-digit growth in earnings and revenue.
For the three months to 31 December, Visa reported adjusted earnings of $3.17 per share, a 15 per cent increase year on year.
Net revenue rose by the same margin to $10.9bn, underpinned by steady expansion in payments volume, cross-border activity and the number of transactions processed.
These metrics remain closely watched barometers of underlying economic momentum, particularly in consumer-led economies.
Looking ahead, Visa struck a confident tone.
Management expects low double-digit growth in net revenue, operating profit and diluted earnings per share for the full 2026 fiscal year.
Wall Street analysts currently forecast annual earnings of $12.81 per share on revenues of $44.5bn, suggesting expectations remain elevated.
Despite this, Visa’s shares fell almost 2 per cent on the day and are down more than 5 per cent year to date, lagging the broader S&P 500.
The muted market reaction reflects not operational weakness, but mounting regulatory and political uncertainty facing the card payments industry.
Mastercard delivers earnings beat and signals restructuring
Mastercard, meanwhile, posted a strong finish to the year, beating expectations for fourth-quarter profit as spending on travel, leisure and everyday essentials held firm.
Adjusted earnings came in at $4.76 per share, well ahead of consensus forecasts, with revenue reaching $8.81bn.
The company also announced plans to cut around 4 per cent of its global workforce, equating to more than 1,400 roles, as part of a strategic reallocation of investment.
The restructuring will result in a one-off charge of roughly $200m in the current quarter.
Cross-border volumes at Mastercard rose 14 per cent, highlighting the continued recovery in international travel and commerce.
More broadly, the results from both networks point to a consumer sector that, while cautious, remains willing to spend — offering a degree of reassurance amid persistent concerns over inflation, trade policy and the global economic outlook.
Political pressure clouds the outlook for card networks
Visa, alongside its closest rival Mastercard, has come under renewed scrutiny after Donald Trump floated the idea of a temporary 10 per cent cap on credit card interest rates.
Such a move would represent a sharp reduction from the current US average of nearly 20 per cent, according to Bankrate.
While the proposal has unsettled investors, several analysts argue that the direct financial impact on the networks themselves could be limited, given that issuers — not Visa or Mastercard — set interest rates.
Nonetheless, the episode underscores the political sensitivity surrounding consumer credit at a time of elevated household borrowing.
Comments