Visa Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tien-Tsin Huang - JPMorgan - Analyst : Good results here. It looks like the consumer is pretty resilient. So beyond volumes, I want to ask if you've seen any noticeable change in tone on client decision-making, pipelines, backlog. I'm definitely curious about international clients and maybe if they're changing the speed with which they're working with Visa. Thanks.

Question: Sanjay Sakhrani - Keefe, Bruyette & Woods North America - Analyst : Thank you. Chris, just to follow up on your point just now on the corridors and the US one, specifically. Obviously, we're hearing a lot of travel information, how things are falling off coming into the US, especially from Canada. Maybe you could just talk about what kind of assumptions you've made for the remainder of this year. Because I know that has an impact on sort of the economic return from each of those corridors, so maybe you could just help us with that. And then just curious, inside of the volumes that you saw intra-quarter and even early in April, did you see any evidence of a pull forward of spending? Thanks.

Question: Andrew Schmidt - Citi - Analyst : Maybe you could dig into value-added services. Good to see the robust growth there. Maybe you could just unpack that and just talk about your viewpoint on how that performs through the cycle. Obviously, there's a range of revenue models, and they're transaction-based, project-based, and recurring/subscription. But if you could unpack that would be great. And then any detail on how you're thinking about value-add services growth in the back half would also be helpful. Thanks so much.

Question: Will Nance - Goldman Sachs - Analyst : Chris, I was wondering if you could double-click again on some of the comments you shared around the incentive outlook. I think you've been talking about a pretty front-loaded renewal schedule. I thought I heard but correct me if I'm wrong, the outlook is for modest increases in the growth rate over the next two quarters, but I may have misheard that. But if that was the case, can you just talk through cadence and some of the drivers, kind of help square that with the front-loaded renewals? Appreciate it. Thank you.

Question: Timothy Chiodo - UBS - Analyst : Great. Thank you. Chris, I want to dig in a little bit more on the delta between nominal and cross-border volumes and nominal international revenue. I think you did a great job going through the items. But to recap, there's the FX volatility, there's the corridor and client mix, there's a pricing aspect, and then, of course, there's the hedging, which impacts the revenue but not the volumes. I think you touched on the FX volatility, meaning not assuming in the guide that the high levels will persist, which is a good conservative approach. You talked around corridor mix and the yields being higher for US inbound. The one I was hoping you could drill in a little bit more is pricing because I know previously, the guidance talked a little bit about pricing being a second half of the fiscal year event. So whether it be specific to cross-border or for the whole business, maybe you could just touch a little bit on that pricing topic.

Question: Darrin Peller - Wolfe Research - Analyst : Hey, guys. Thanks. If you don't mind just going a little deeper into the FX vol offset by what you just said, customer mix and hedging. I guess it's just -- if you can explain a little bit more. I know that corridor and mix on corridor could be a factor. As you said, US volume inbound could have a higher yield. But we haven't necessarily heard you call out hedging much before in the business and would assume that FX vol benefits would have been more of an offset. So maybe just explain a little more of the hedging or the mix dynamic and what exactly happened. And then just a quick add-on would be de minimis and whether or not from an e-comm standpoint, cross-border e-comm and something that you're factoring in or thinking about having any way to think about how to factor that into the model going forward. Thanks, guys.

Question: Jason Kupferberg - BofA Global Research - Analyst : Wanted to ask about US volume growth. I know we went from 6% in the March quarter to 8% month to date. So I'm just curious if you normalize for effects of Easter. And I know Chris, you mentioned a little bit of pull-forward of spend out of the tariffs. Should we be just assuming some moderation off the April levels of 8% given those factors? Just want to make sure we've got the modeling square there so we don't overextrapolate from a few weeks of data. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 29, 2025 / 9:00PM, V.N - Q2 2025 Visa Inc Earnings Call

Question: Bryan Keane - Deutsche Bank - Analyst : Just want to ask about the entertainment weakness, where you saw it exactly and do you expect that to continue going forward? And was just thinking about the different affluent group maybe growing faster versus other bands and just the outlook there. Thanks.

Question: Dan Perlin - RBC Capital Markets - Analyst : Thanks. Just given the geopolitical backdrop, I'm just wondering, Ryan, if it changes in any way your views of how you're placing like your investment bets. I mean, not the long-term ones, but maybe more near term. So like risk-on, your payback period, specific geos that maybe you were thinking were kind of more short duration in nature but now you want to throttle back, or even M&A opportunities that you might see that potentially could be created in this backdrop. Thank you.

Question: Adam Frisch - Evercore ISI - Analyst : My extrapolation of your guidance is if there's a little bit of weakness kind of just more related to cyclicality as opposed to anything more crazy, you guys can absorb that. Correct me if I'm wrong on that assumption. But if macro conditions shift materially and much more quickly than expected, can you remind us where your key levers are in terms of revenue, like pricing or cost management in terms of marketing and stuff that would allow you to keep pace with the rate of change if it were to be faster and protect your margins? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 29, 2025 / 9:00PM, V.N - Q2 2025 Visa Inc Earnings Call

Question: Ramsey El-Assal - Barclays - Analyst : Stablecoins seem to be having their moment, maybe helped along by clear regulations. I know you called out your strategy there, including this reaching $200 million of settlement flows. What are your latest thoughts on the demand for those stablecoin settlements or other stablecoin payments? Are you seeing or expecting an inflection? What are your clients saying? Thanks.

Question: Harshita Rawat - Bernstein - Analyst : Ryan, you guys managed government nationalism risk for decades as a company. How do you think about navigating that risk in the current environment being the US-based company operating globally during trade disputes? Thank you.