Visa Inc. (NYSE: V) experienced a decline in its stock price during after-hours trading on Thursday despite announcing better-than-expected first-quarter financial outcomes. The company's latest earnings report presented figures that beat consensus analyst estimates, yet this positive performance did not translate into immediate stock gains.
For the quarter ending December 31, 2025, Visa posted earnings per share (EPS) of $3.17, surpassing the consensus forecast of $3.14. Meanwhile, total revenue reached $10.9 billion, outperforming the anticipated $10.69 billion. These results underscore Visa's ability to deliver solid financial growth.
Examining operational metrics provides further insight into the company’s quarterly achievements. Payment volumes—which form the basis for recognizing fiscal first-quarter service revenue—showed significant year-over-year growth. Specifically, payments volume for the previously concluded quarter grew by 8%, whereas payments volume measured for the three months ending September 30, 2025, increased by 9% on a constant-dollar basis. The sustained growth in payments volume underlines strong transactional activity across Visa’s network.
Cross-border transactions, measured on a constant-dollar basis, expanded by 12% compared to the previous year, highlighting increased international card usage. Additionally, Visa processed a total of 69.4 billion transactions during the quarter, marking a 9% increase from one year earlier. This rise in processed transactions reflects robust demand for Visa's payment infrastructure worldwide.
The company's revenue segments also demonstrated healthy growth. Fiscal first-quarter service revenue was reported at $4.8 billion, a 13% uplift relative to the prior year. Data processing revenue, a key component of Visa's income, grew 17% to reach $5.5 billion, indicating an expanding volume of transaction data services. Moreover, international transaction revenue rose 6% year-over-year to $3.7 billion, demonstrating solid performance in global markets.
Ryan McInerney, President and CEO of Visa Inc., characterized the quarter as "very strong," citing a 15% year-over-year increase in net revenue and a 17% growth in GAAP EPS. He also noted a 15% rise in non-GAAP EPS during the period. The company's strong holiday season results, the resilience of consumer spending patterns, and ongoing strength in value-added services, commercial operations, and money movement solutions contributed to this favorable financial landscape.
Despite Visa's favorable earnings and revenue metrics, the stock saw a decline of approximately 2% in post-market trading, settling at $325.18. This retreat in stock price could reflect investor reassessment or other market dynamics not directly tied to the fundamentals reported.
Developments such as these emphasize the complexity of market reactions where positive earnings surprises may coincide with bearish investor sentiment. Visa’s comprehensive report indicates growth across various segments, but market pricing signals a more cautious stance.
In summary, while Visa demonstrated strong operational and financial growth during the first quarter, the immediate market response in stock price does not fully mirror these robust fundamentals, highlighting potential areas that investors might be considering carefully.