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Visa
(NYSE:V)
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Rating:83Outperform
Price Target:
$422.00
▲(33.11% Upside)
Action:Reiterated
Date:05/12/26
Score is driven primarily by Visa’s exceptional profitability and high-quality cash generation, reinforced by raised guidance and strong operational momentum discussed on the earnings call. Offsetting this are slower recent revenue/FCF growth and only neutral-to-moderately positive technicals, while valuation reflects a premium P/E with a low dividend yield.
Positive Factors
Profitability & Cash Generation
Visa's exceptionally high margins and near parity of free cash flow to net income (TTM FCF/NI ~0.94) create durable internal funding for technology, global network investment and large buybacks/dividends. Strong cash conversion supports multi-year capital allocation and resilience through cycles.
Negative Factors
Slowing Top-Line Momentum
Revenue growth has decelerated from prior periods and recent negative FCF momentum suggests timing or working-capital pressure. Slower organic growth increases reliance on product upsell, acquisitions and buybacks to drive EPS, reducing margin for error if macro or cross‑border trends weaken further.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & Cash Generation
Visa's exceptionally high margins and near parity of free cash flow to net income (TTM FCF/NI ~0.94) create durable internal funding for technology, global network investment and large buybacks/dividends. Strong cash conversion supports multi-year capital allocation and resilience through cycles.
Read all positive factors
Visa Key Performance Indicators (KPIs)
Any
Transactions
Monitors the number of transactions processed, highlighting the company's operational scale and its ability to capture consumer spending trends.
Monitors the number of transactions processed, highlighting the company's operational scale and its ability to capture consumer spending trends.
Data provided by:
The Fly
The FlyVisa (V) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$682.30B
Dividend Yield0.69%
Average Volume (3M)7.91M
Price to Earnings (P/E)31.5
Beta (1Y)0.75
Revenue Growth14.37%
EPS Growth13.59%
CountryUS
Employees28,800
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)11.49
Shares Outstanding1,659,710,000
10 Day Avg. Volume7,403,895
30 Day Avg. Volume7,908,237
Financial Highlights & Ratios
PEG Ratio6.78
Price to Book (P/B)17.49
Price to Sales (P/S)16.57
P/FCF Ratio30.73
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue14.99
Enterprise Value/Gross Profit18.44
Enterprise Value/Ebitda22.83
Forecast
1Y Price Target
$393.61Price Target Upside24.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering25
EPS Forecast (FY)13.15
Revenue Forecast (FY)$45.57B
Visa Business Overview & Revenue Model
Company Description
Visa Inc. functions globally as a leading technology company dedicated to payments. Its primary role is to enable the secure and efficient digital transfer of funds among a wide array of participants, including individual consumers, retail busines...
How the Company Makes Money
Visa primarily makes money by charging fees to financial institution clients (issuers and acquirers) and, indirectly, to merchants through their acquiring banks for using the Visa network and related services. Key revenue streams typically include...
Visa Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum and financial outperformance: robust revenue and EPS growth, accelerating value-added services and commercial/money-movement revenue, notable progress in stablecoin/on-chain initiatives, sizable capital returns and raised guidance. Near-term headwinds were noted — primarily geopolitical impacts in the Middle East/CEMEA, incentives/timing variability, volatility comparables and modest increases in non-operating expense — but management presented these as manageable and offset by diversified growth drivers and strategic investments.Positive Updates
Strong Revenue and EPS Performance
Net revenue $11.2B, up 17% year-over-year (16% in constant dollars); non-GAAP EPS $3.31, up 20% year-over-year — strongest net revenue growth since 2022 and the strongest ex-post-pandemic and Visa Europe acquisition since 2013.
Negative Updates
Middle East Conflict Impact and CEMEA Slowdown
Conflict in the Middle East caused about a ~2.5 point step-down in payments volume growth in CEMEA from Q1; CEMEA represents ~6% of total payments volume and contributed to near-term cross-border travel weakness.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue and EPS Performance
Net revenue $11.2B, up 17% year-over-year (16% in constant dollars); non-GAAP EPS $3.31, up 20% year-over-year — strongest net revenue growth since 2022 and the strongest ex-post-pandemic and Visa Europe acquisition since 2013.
Read all positive updates
Company Guidance
Visa raised its full-year adjusted (non‑GAAP, constant‑dollar, acquisition‑adjusted) outlook, now expecting net revenue growth in the low double‑digits to low teens and adjusted EPS growth in the low teens; full‑year operating expense growth is forecasted in the low double‑digit to low‑teen range, non‑operating expense about $150 million, and a tax rate of 18–18.5% (closer to the low end). Key assumptions include continued consumer spend stability, no material change to pricing (with new pricing effective in H2), no material change to incentives (but a step‑up in incentive growth from Q2 to Q3 as comps lap Q3 2025), higher volatility assumptions for Q3/Q4 (back to original October guidance), and stronger value‑added services driven in part by FIFA. For Q3 (adjusted) they expect net revenue growth in the low double‑digits, operating expense growth in the low teens, non‑operating expense of about $55 million, a tax rate around 18.5% and EPS growth in the mid‑ to high‑single digits, with an implied ~1‑point step‑up in net revenue growth into Q4; acquisitions (Prisma/Newpay) are expected to add ~1 point to full‑year net revenue (~1.5 points to op expense and ~0.5 point to EPS) and ~1.5 points to Q3 net revenue (~2 points to Q3 op expense and ~0.5 point to Q3 EPS).Visa Financial Statement Overview
Summary
Income Statement
94
Very Positive
Balance Sheet
83
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 43.03B | 40.00B | 35.93B | 32.65B | 29.31B | 24.11B |
| Gross Profit | 34.98B | 32.15B | 28.88B | 26.09B | 23.58B | 19.14B |
| EBITDA | 28.25B | 26.00B | 25.59B | 22.62B | 19.54B | 17.38B |
| Net Income | 22.24B | 20.06B | 19.74B | 17.27B | 14.96B | 12.31B |
Balance Sheet | ||||||
| Total Assets | 95.05B | 99.63B | 94.51B | 90.50B | 85.50B | 82.90B |
| Cash, Cash Equivalents and Short-Term Investments | 13.91B | 21.99B | 15.18B | 20.13B | 18.52B | 18.51B |
| Total Debt | 23.98B | 25.17B | 20.84B | 20.46B | 22.45B | 20.98B |
| Total Liabilities | 59.39B | 61.72B | 55.37B | 51.77B | 49.92B | 45.31B |
| Stockholders Equity | 35.66B | 37.91B | 39.14B | 38.73B | 35.58B | 37.59B |
Cash Flow | ||||||
| Free Cash Flow | 21.18B | 21.58B | 18.69B | 19.70B | 17.88B | 14.52B |
| Operating Cash Flow | 22.76B | 23.06B | 19.95B | 20.75B | 18.85B | 15.23B |
| Investing Cash Flow | -469.00M | 708.00M | -1.93B | -2.01B | -4.29B | -152.00M |
| Financing Cash Flow | -23.22B | -18.96B | -20.63B | -17.77B | -12.70B | -14.41B |
Visa Technical Analysis
Positive
317.02
Price Trends
325.79
Positive
318.27
Positive
327.85
Positive
Market Momentum
7.15
Negative
76.76
Negative
92.69
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For V, the sentiment is Positive. The current price of 317.02 is below the 20-day moving average (MA) of 330.97, below the 50-day MA of 325.79, and below the 200-day MA of 327.85, indicating a bullish trend. The MACD of 7.15 indicates Negative momentum. The RSI at 76.76 is Negative, neither overbought nor oversold. The STOCH value of 92.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for V.
Visa Risk Analysis
Visa disclosed 21 risk factors in its most recent earnings report. Visa reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Visa Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $682.30B | 31.52 | 58.90% | 0.69% | 14.37% | 13.59% | |
77 Outperform | $476.60B | 31.18 | 206.12% | 0.54% | 17.06% | 21.18% | |
77 Outperform | $25.68B | 7.82 | 21.41% | 1.34% | -3.18% | 32.55% | |
75 Outperform | $240.15B | 21.96 | 33.95% | 0.84% | 9.41% | 12.00% | |
70 Outperform | $126.36B | 71.97 | 2.86% | 1.05% | 39.21% | -76.14% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $40.11B | 8.47 | 25.08% | ― | 6.97% | 19.31% |
* Financial Sector Average
V
Visa
357.25
3.40
0.96%
AXP
American Express
356.03
36.72
11.50%
COF
Capital One Financial
206.50
-11.04
-5.07%
MA
Mastercard
533.10
-28.70
-5.11%
SYF
Synchrony Financial
77.05
8.49
12.39%
PYPL
PayPal Holdings
45.09
-30.44
-40.30%
Visa Corporate Events
Business Operations and StrategyStock Buyback
Visa Adjusts Class B Share Conversion, Refines Capital Structure
Neutral
Jun 26, 2026
On June 24, 2026, Visa authorized a $250 million deposit into its U.S. litigation escrow account under its retrospective responsibility plan, a structure largely affecting shares held by U.S. financial institutions. The funding triggered downward ...
Business Operations and StrategyLegal ProceedingsPrivate Placements and Financing
Visa Finalizes Exchange Offer and Litigation Makewhole Pact
Neutral
May 12, 2026
On May 12, 2026, Visa settled its previously announced exchange offer covering all outstanding Class B-1 and Class B-2 common stock, issuing Class B-3 and Class C shares to participating holders and entering into makewhole agreements effective May...
Business Operations and Strategy
Visa Simplifies Capital Structure After Successful Exchange Offer
Positive
May 11, 2026
On May 11, 2026, Visa announced the results of its exchange offer for Class B-1 and Class B-2 common stock, which expired on May 8, 2026 and allowed holders to swap their shares for a mix of Class B-3 and Class C common stock plus cash in lieu of ...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Visa boosts dividend, launches new $20B buyback program
Positive
Apr 28, 2026
On April 28, 2026, Visa’s board declared a quarterly cash dividend of $0.670 per share of class A common stock, payable June 1, 2026, to shareholders of record as of May 12, 2026, underscoring continued capital returns alongside an announced...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.