Stock Markets January 29, 2026

Visa Posts Higher Quarterly Profit as Holiday Spending Holds Up

Card usage rose during the holiday quarter, with global payments volume up 8% on a constant-dollar basis; Mastercard also delivered solid results

By Hana Yamamoto MA
Visa Posts Higher Quarterly Profit as Holiday Spending Holds Up
MA

Visa reported an increase in first-quarter profit driven by heavier card usage over the holiday period and resilient U.S. consumer spending, particularly among higher-income households. Global payments volume on Visa's network rose 8% on a constant-dollar basis. Peer Mastercard also recorded stronger quarterly earnings as spending on travel, leisure and essentials supported transaction volumes.

Key Points

  • Visa's first-quarter profit rose as card usage increased during the holiday season, with global payments volume up 8% on a constant-dollar basis.
  • Consumer spending in the last three months of 2025 remained strong, supported by higher-income households, and featured record shopper activity and a surge in online sales - impacting retailers and digital commerce.
  • Mastercard also posted stronger results, with net income of $5.9 billion, or $3.03 per share, for the three months ended December 31, compared with $5.1 billion, or $2.58 per share, a year earlier - reflecting resilience in travel, leisure and everyday essentials spending.

Visa said first-quarter profit increased as consumers used cards more frequently during the holiday season, supported by steady U.S. spending. The company noted that consumer outlays remained strong in the final three months of 2025, driven largely by higher-income households, and helped by a holiday season that recorded elevated shopper numbers and a notable rise in online sales.

As a payments network used by billions of people for everyday purchases, Visa's results are commonly viewed as an indicator of consumer activity. The firm reported that global payments volume - a measure of the total value of purchases routed on its network - climbed 8% on a constant-dollar basis in the quarter covered by the report.

The company also highlighted the differing pressures across income groups. Middle-income households, the report said, face a constrained ability to substitute purchases as prices have risen for consumers under tariffs imposed by U.S. President Donald Trump.

In parallel, Mastercard, a direct peer in the payments industry, posted robust quarterly results. The card processor attributed healthy transaction volumes to persistent spending on travel, leisure and everyday essentials. Mastercard reported net income of $5.9 billion, or $3.03 per share, for the three months ended December 31, up from $5.1 billion, or $2.58 per share, in the prior-year period.

The two companies' results underscore continued consumer engagement with electronic payments during the holiday period and the broader shift toward digital and card-based purchases. Visa's global payments volume growth and Mastercard's improved net income both reflect higher transaction activity on major payments networks during the reported quarter.

While the earnings figures point to strength in spending among certain segments, the report also notes the uneven impact of price increases across households. That dynamic - higher spending among wealthier households alongside constrained substitution by middle-income consumers - frames part of the consumer picture for the quarter.


Methodology note - This article reports the facts presented in the companies' quarterly results and related commentary. It does not add or infer data beyond those disclosures.

Risks

  • Rising consumer prices linked to tariffs could constrain spending flexibility for middle-income households, which may affect retailers and consumer discretionary demand.
  • Concentration of spending among higher-income households could mask weaker demand in other income segments, creating uneven impacts across sectors such as mass-market retail and services.
  • Any slowdown in transaction growth would directly affect payment processors' revenue trends, posing risks to financial performance in the payments sector.

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