Ryan McInerney: "Our total first quarter volume on our network had just crossed $3 trillion. Just five years later, our total quarterly volume was above $4 trillion."
— Ryan McInerney
03Detailed Report
V
Visa Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 6, 2026
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Executive Summary
Visa Inc reported a strong start to its fiscal year 2025, achieving net revenues of $9.5 billion, reflecting a robust year-over-year growth of 10%. Earnings per share (EPS) also saw a healthy increase of 14%, showcasing the company's solid financial health. Management attributed this growth to key drivers including a 9% increase in overall payments volume and a 16% rise in cross-border volume, indicating a strong recovery in consumer spending and travel. Additionally, Visa's strategic focus on digital payments and innovative value-added services is expected to enhance client engagement and market competitiveness going forward.
Key Performance Indicators
Revenue
Increasing
9.51B
QoQ: -1.11% | YoY: 10.15%
Gross Profit
Increasing
7.49B
78.76% margin
QoQ: -3.97% | YoY: 7.40%
Operating Income
Increasing
6.23B
QoQ: -1.81% | YoY: 4.70%
Net Income
Increasing
5.12B
QoQ: -3.74% | YoY: 4.68%
EPS
Increasing
2.96
QoQ: -9.76% | YoY: 23.85%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $9.5 billion, up 10% YoY
- EPS: $2.75, up 14% YoY
- Gross Profit: $7.49 billion, with a gross profit margin of 78.76%
- Net Income: $5.12 billion, with a net income margin of 53.83%
- Operating Cash Flow: $5.40 billion; Free Cash Flow: $5.05 billion
- Return on Equity (ROE): 13.4%; Return on Assets (ROA): 5.57%.
The company's operating income was $6.23 billion with an operating margin of 65.55%. Management indicated that upcoming initiatives and better-than-expected client activity led to stronger revenue performance in several segments.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
9.51B
10.15%
-1.11%
Gross Profit
7.49B
7.40%
-3.97%
Operating Income
6.23B
4.70%
-1.81%
Net Income
5.12B
4.68%
-3.74%
EPS
2.96
23.85%
-9.76%
Key Financial Ratios
Gross Profit Margin
Excellent
78.80%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
65.60%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
53.80%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
5.57%
Return on assets is acceptable but below top-tier companies
Return on Equity
Good
13.40%
Return on equity shows solid performance and effective asset utilization
Current Ratio
Adequate
1.12
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Moderate
0.54
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Growth
26.69x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
14.27x
Very high premium suggests asset-light business model or lofty expectations
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