Visa profit jumps on resilient consumer spending

(Reuters) - Visa (NYSE:V ) reported a jump in fourth-quarter profit on Tuesday, as consumers set aside worries of a slowing economy and swiped their cards to splurge on travel and dining out, sending its shares up 2.5% after the bell.

U.S. consumer spending has remained largely resilient despite elevated interest rates, with analysts expecting a soft landing for the economy to boost confidence and reignite spending growth.

Payments volume rose 8% in the quarter on a constant-dollar basis, while cross-border volume excluding intra-Europe, a gauge of international travel demand, surged 13%.

The world's largest payments processor forecast full-year 2025 adjusted net revenue growth of high single digits to low double digits. That compares with Wall Street expectations of 10.8% growth, according to data compiled by LSEG.

It expects adjusted profit per share growth to be at the high end of low double digits, compared with expectations of 11.7% growth.

Meanwhile, the U.S. Justice Department last month sued Visa for allegedly monopolizing debit card markets. Visa has called the claims meritless.

The lawsuit came months after another major legal setback for Visa, when a judge in June rejected a $30 billion antitrust settlement wherein Visa and Mastercard (NYSE:MA ) had agreed to limit fees they charge merchants.



Visa's net revenue jumped 12% to $9.62 billion in the quarter.

Net income rose to $5.32 billion, or $2.65 per share, in the three months ended Sept. 30 from $4.68 billion, or $2.27 per share, a year earlier.

Source: Investing.com