Visa Stock Price Drops on Flat Guidance Despite Q3 Beat, Stablecoin Entry
Despite the business's strong quarterly performance, Visa's share price dropped after the company reiterated its growth objectives and...
Quick overview
- Visa reported strong fiscal Q3 results with revenue of $10.17 billion, reflecting a 14% year-over-year growth.
- Despite exceeding earnings expectations, Visa's share price fell over 5% after the company reaffirmed its 2025 growth targets.
- CEO Ryan McInerney highlighted resilience in consumer spending but acknowledged concerns about the disruptive potential of stablecoins.
- The recent GENEUS Act may challenge Visa's dominance by allowing merchants to bypass traditional payment systems.
Despite the business’s strong quarterly performance, Visa’s share price dropped after the company reiterated its growth objectives and addressed looming threats to digital currency.
Market Reaction and Price Movement
Visa Inc. (V) saw its share price decline more than 1% during Tuesday’s US session, closing at $351.29. But after the release of its fiscal third-quarter earnings, which surpassed expectations, the stock dropped further in after-hours trading, slipping below the $340 mark and extending daily losses to roughly 5%.
V Stock Chart Weekly – MAs Still Holding As Support
Q3 Results Outshine, But Guidance Disappoints
The financial giant reported stronger-than-expected earnings and revenue growth despite persistent economic pressure on consumers. CEO Ryan McInerney attributed the quarter’s strength to continued resilience in consumer spending and healthy debt-driven purchases. Still, investors appeared underwhelmed after the company stuck with its previously announced 2025 net revenue growth target—news that added weight to the stock’s decline.
Visa Q3 2025 Earnings Summary
Visa delivered strong fiscal Q3 results, outperforming expectations on both revenue and earnings.
Financial Highlights
- Revenue: $10.17 billion for the quarter
- YoY Growth: 14%
- Beat analyst expectations from Visible Alpha
- Adjusted Net Income: $5.83 billion
- Up from $4.91 billion in the same quarter last year
Earnings per Share (EPS):
- $2.98 vs. $2.42 last year
- Above estimates, signaling strong profitability
Operational Metrics
Payments Volume:
- Increased by 8% YoY
- Indicates stable global consumer activity
Processed Transactions:
- Grew by 10%
- Reflects broader adoption of Visa’s network across merchants and platforms
Innovation Amid Disruption Concerns
McInerney reiterated Visa’s commitment to driving innovation in areas like artificial intelligence and stablecoin-based services. However, he acknowledged rising concerns about the potential disruption stablecoins may pose to traditional card networks like Visa’s.
Stablecoins—digital currencies tied to assets like the US dollar—are increasingly being viewed as a viable alternative to legacy payment systems. The recently passed GENEUS Act, which establishes a formal regulatory framework for private stablecoin issuance, could allow merchants to bypass traditional card infrastructure altogether, challenging the dominance of firms like Visa in the global payments ecosystem.
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