NYSE$V

Visa · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Visa's Q2 2022 financial results were reported, marked by strong growth in net revenue, GAAP net income, and non-GAAP net income, amidst geopolitical challenges.

Visa Inc. reported a strong fiscal second quarter with net revenues of $7.2 billion, a 25% increase year-over-year. GAAP net income was $3.6 billion, up 21%, and non-GAAP net income was $3.8 billion, up 27%. The results reflect robust growth in payments volume, cross-border volume, and processed transactions, despite the suspension of operations in Russia and the ongoing impacts of the global economic recovery.

  • Net revenues increased by 25% to $7.2 billion, driven by growth in payments volume, cross-border volume, and processed transactions.
  • GAAP net income rose by 21% to $3.6 billion, or $1.70 per share.
  • Non-GAAP net income increased by 27% to $3.8 billion, or $1.79 per share.
  • Visa suspended operations in Russia due to the invasion of Ukraine, impacting revenue.

Headline financials

Total Revenue

$7.19B

Previous: $5.73B+25.5%
EPS (adj)

$1.79

Previous: $1.38+29.7%
Cross-Border Volume Growth

38.0%

Previous: -11.0%+445.5%
Transactions Processed

44.8B

Previous: 37.6B+19.0%
Free Cash Flow

$3.65B

Previous: $3.03B+20.5%
Net Income

$3.65B

Previous: $3.03B+20.5%
Operating Income

$4.8B

Previous: $3.58B+34.1%
Cash & Equivalents

$12.3B

Previous: $16.5B-25.4%
Total Assets

$81.8B

Previous: $80.2B+2.0%

Revenue & EPS history

Visa · Revenue · Quarterly

$7.19B

Q2 2022+25.5%vs Q2 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Visa · $12.2B total across 5 segments · Q2 2022

  • Service Revenue
    $3.52B+23.8%
  • Data Processing Revenue
    $3.48B+16.2%
  • Client Incentives
    $2.49B+225.2%
  • International Transactions
    $2.21B+48.4%
  • Other Revenue
    $474M+20.9%

Forward guidance

The press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that relate to, among other things, our future operations, prospects, developments, strategies, business growth and anticipated timing and benefits of our acquisitions.

Tailwinds

  • Future operations
  • Prospects
  • Developments
  • Strategies
  • Business growth

Headwinds

  • Impact of global economic, political, market, health and social events or conditions, including Russia's invasion of Ukraine and the sanctions and other measures being imposed in response, and the ongoing impacts of the COVID-19 pandemic, including the reopening of borders and resumption of international travel
  • Increased oversight and regulation of the global payments industry and our business
  • Impact of government-imposed obligations and/or restrictions on international payment systems
  • Outcome of tax, litigation and governmental investigation matters
  • Increasingly intense competition in the payments industry, including competition for our clients and merchants

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.5%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.0%

Avg return

30 days after

51%

33 / 65 earnings

Positive

+10.7%

Q1 2022

Best reaction

-7.7%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+2.6%+5.7%+5.9%
Q1 2026-1.2%-0.6%-3.5%
Q4 2025-2.4%-2.9%-3.6%
Q3 2025-0.1%-2.6%+0.1%
Q2 2025+1.2%+2.1%+6.9%
Q1 2025-0.4%+1.9%+5.7%
Q4 2024+2.1%+2.3%+10.7%
Q3 2024-5.1%-3.1%+0.1%
Q2 2024+1.0%+0.8%+0.7%
Q1 2024-1.4%+2.0%+4.4%
Q4 2023+2.3%-1.0%+9.6%
Q3 2023-1.5%-2.1%-0.5%
Q2 2023-2.0%-0.0%-4.0%
Q1 2023+2.9%+2.4%-2.4%
Q4 2022+6.6%+9.8%+11.0%
Q3 2022-1.8%-1.0%-2.1%
Q2 2022+2.0%+1.5%-0.7%
Q1 2022+10.7%+12.9%+6.5%
Q4 2021-7.7%-9.5%-13.1%
Q3 2021-1.3%-1.5%-7.9%
Q2 2021+1.4%+1.4%-1.5%
Q1 2021-0.9%+3.9%+8.9%
Q4 2020-2.7%-2.8%+11.0%
Q3 2020+0.8%-3.3%+7.2%
Q2 2020-3.4%-1.8%+7.4%
Q1 2020-2.9%-0.6%-11.3%
Q4 2019+3.8%+3.7%+4.8%
Q3 2019+1.5%+1.7%-0.3%
Q2 2019-0.4%+1.5%+0.6%
Q1 2019+0.0%+4.8%+10.7%
Q4 2018+1.0%-3.4%-4.5%
Q3 2018+1.8%-2.5%+3.0%
Q2 2018+4.8%+4.6%+8.3%
Q1 2018-2.7%-3.4%-2.8%
Q4 2017+1.3%+1.5%+3.3%
Q3 2017+1.4%+1.8%+4.3%
Q2 2017+1.6%+2.6%+3.0%
Q1 2017+4.4%+4.1%+7.7%
Q4 2016-0.4%-0.2%-3.4%
Q3 2016+0.7%-1.1%+1.4%
Q2 2016-2.5%
Q1 2016+5.0%
Q4 2015+0.4%
Q3 2015+3.9%
Q2 2015-2.3%
Q1 2015+3.5%
Q4 2014+9.2%
Q3 2014-2.9%
Q2 2014-4.8%
Q1 2014-0.8%
Q4 2013-3.7%
Q3 2013+3.2%
Q2 2013+4.1%
Q1 2013-1.5%
Q4 2012+4.0%
Q3 2012+3.2%
Q2 2012-5.4%
Q1 2012+5.1%
Q4 2011-0.2%
Q3 2011-1.4%
Q2 2011-0.5%
Q1 2010+1.3%
Q4 2010-1.9%
Q3 2010-0.5%
Q2 2010-2.1%

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