Visa Q2 profit and revenue growth beat Wall Street targets

By Maria Armental


Visa Inc.’s March quarter results beat Wall Street targets, reflecting growth in payment and transaction volume, including more lucrative cross-border transactions.

The San Francisco-based company, the largest card network in the United States, said second-quarter earnings rose to $3.65 billion, or $1.70 per Class A share, from 3, $03 billion or $1.38 per share a year earlier.

Net revenue rose to $7.19 billion from $5.73 billion a year earlier.

Analysts polled by FactSet had expected $1.66 per share on $6.83 billion in revenue.

Customer incentives rose 25% to $2.49 billion, above the $2.43 billion expected by analysts.

Services revenue, which is based on the previous quarter’s payment volume, rose 24% to $3.5 billion, the company said.

Revenue from international transactions, which is tied to cross-border spending, rose 48% to $2.2 billion.

Payment volume increased by 17% in constant dollars.

Visa recorded about $60 million in charges in the quarter related to Russia and Ukraine, including about $35 million from the deconsolidation of its Russian subsidiary.

Russia accounted for about 4% of Visa’s total net income in the most recent fiscal year, which ended in September, and Ukraine about 1%.


Write to Maria Armental at maria.armental@wsj.com