Visa (V) AI Stock Analysis

• Market Cap: $649.07B
• Dividend Yield: 0.68%
• Average Volume (3M): 6.00M
• Price to Earnings (P/E): 33.0
• Beta (1Y): 0.77
• Revenue Growth: 11.34%
• EPS Growth: 3.00%
• Country: US
• Employees: 28,800
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 2.98
• Shares Outstanding: 1,698,682,500
• 10 Day Avg. Volume: 5,949,141
• 30 Day Avg. Volume: 6,004,367
• PEG Ratio: 5.18
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 16.53
• P/FCF Ratio: 30.64
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 16.52
• Enterprise Value/Gross Profit: 20.76
• Enterprise Value/Ebitda: 25.41
• 1Y Price Target: $401.00
• Price Target Upside: 19.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 25

• Rating: 75 Outperform
• Price Target: $383.00 ▲(13.68% Upside)

Visa's overall stock score is driven by its strong financial performance and positive earnings call, which highlight robust growth and strategic initiatives in AI and digital payments. While the technical analysis and valuation suggest some caution due to mixed signals and a high P/E ratio, the company's solid fundamentals and innovation-focused strategy support a positive outlook.

Positive Factors

Revenue Growth

Visa's consistent revenue growth underscores its strong market position and ability to expand its payment network, supporting long-term business stability.

Network Expansion

Expanding the network of endpoints enhances Visa's global reach and connectivity, providing a competitive advantage in the digital payments landscape.

Innovation and AI Initiatives

Investments in AI and innovation improve operational efficiency and product offerings, positioning Visa for sustained growth in a tech-driven market.

Negative Factors

Operating Expenses Increase

Rising operating expenses could pressure margins and profitability, potentially impacting Visa's financial performance if not managed effectively.

Latin America Volume Deceleration

Volume deceleration in key regions like Latin America may hinder growth prospects, highlighting potential vulnerabilities in regional markets.

Moderate Leverage

While manageable, moderate leverage could limit financial flexibility, affecting Visa's ability to invest in growth opportunities or weather economic downturns.

Visa Business Overview & Revenue Model

Company Description

Visa Inc. is a global payments technology company that facilitates digital payments among consumers, merchants, financial institutions, and government entities. Headquartered in Foster City, California, Visa operates in the financial services sector and provides a wide range of products and services, including credit, debit, and prepaid cards, as well as payment processing solutions. Visa's network enables secure, fast, and reliable electronic transactions across various channels, including in-person, online, and mobile payments, making it a leader in the payments industry.

How the Company Makes Money

Visa generates revenue primarily through transaction fees charged to financial institutions for processing card transactions made by consumers and businesses. The company earns a percentage of the transaction value, known as the interchange fee, which is paid by the merchant's bank to the cardholder's bank. Additionally, Visa charges service fees to financial institutions for various services, including fraud prevention, data analytics, and marketing support. Significant partnerships with banks, credit unions, and merchants enhance Visa's revenue streams by expanding its payment network and increasing transaction volume. Moreover, Visa invests in technology and innovations to improve payment solutions, which can lead to increased adoption and usage, further contributing to its earnings.

Visa Financial Statement Overview

Summary

Visa demonstrates strong financial health with consistent revenue and profit growth, efficient cost management, and robust cash flow generation. The balance sheet reflects a stable financial position with moderate leverage. Minor fluctuations in growth rates are present, but the overall trajectory remains positive.

Income Statement

Visa's income statement reflects strong profitability with a consistent increase in total revenue over the years. The company maintains high margins, with a net profit margin of 50.15% in the latest year, indicating efficient cost management. Revenue growth has been steady, although slightly lower in the most recent year compared to previous periods. Overall, Visa demonstrates robust financial performance with solid revenue and profit growth.

Balance Sheet

Visa's balance sheet shows a healthy financial position with a manageable debt-to-equity ratio of 0.66 in the latest year, indicating moderate leverage. The return on equity is strong, reflecting effective use of shareholder funds. However, the equity ratio suggests a moderate reliance on debt financing. Overall, Visa's balance sheet is stable, with a good balance between debt and equity.

Cash Flow

Visa's cash flow statement indicates strong cash generation capabilities, with a high free cash flow to net income ratio of 93.57%. Although there was a slight decline in free cash flow growth in the latest year, the operating cash flow remains robust, supporting the company's operational needs and shareholder returns. Overall, Visa's cash flow position is solid, with consistent cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	40.00B	40.00B	35.93B	32.65B	29.31B	24.11B
Gross Profit	31.83B	30.93B	28.88B	26.09B	23.58B	19.14B
EBITDA	26.00B	26.00B	25.59B	22.62B	19.54B	17.38B
Net Income	20.06B	20.06B	19.74B	17.27B	14.96B	12.31B
Balance Sheet
Total Assets	99.63B	99.63B	94.51B	90.50B	85.50B	82.90B
Cash, Cash Equivalents and Short-Term Investments	19.00B	21.99B	15.18B	20.13B	18.52B	18.51B
Total Debt	25.17B	25.17B	20.84B	20.98B	22.45B	20.98B
Total Liabilities	61.72B	61.72B	55.37B	51.77B	49.92B	45.31B
Stockholders Equity	37.91B	37.91B	39.14B	38.73B	35.58B	37.59B
Cash Flow
Free Cash Flow	21.58B	21.58B	18.69B	19.70B	17.88B	14.52B
Operating Cash Flow	23.06B	23.06B	19.95B	20.75B	18.85B	15.23B
Investing Cash Flow	708.00M	708.00M	-1.93B	-2.01B	-4.29B	-152.00M
Financing Cash Flow	-18.96B	-18.96B	-20.63B	-17.77B	-12.70B	-14.41B

Visa Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 336.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For V, the sentiment is Negative. The current price of 336.9 is below the 20-day moving average (MA) of 344.91, below the 50-day MA of 344.52, and below the 200-day MA of 345.46, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 41.32 is Neutral, neither overbought nor oversold. The STOCH value of 27.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for V.

Visa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXP	―	$249.10B	24.28	33.70%	0.87%	8.14%	9.55%
PYPL	―	$64.81B	13.90	24.36%	―	4.50%	19.71%
V	―	$649.07B	33.03	51.67%	0.68%	11.34%	3.00%
SYF	―	$26.79B	8.13	21.64%	1.50%	-6.38%	19.65%
MA	―	$488.57B	34.80	185.74%	0.56%	15.67%	18.22%
COF	―	$140.93B	114.16	-0.07%	1.08%	10.51%	-81.56%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Visa Corporate Events

Visa’s Earnings Call: Strong Growth and Positive Outlook

Visa’s recent earnings call painted a picture of robust financial health and strategic growth. The company reported strong financial performance across several key areas, including network expansion, tokenization, and value-added services. Despite facing challenges in Latin America and increased operating expenses, Visa’s outlook remains optimistic, bolstered by significant investments in AI and innovation.

Visa Inc. Reports Strong Fiscal 2025 Results

Visa Inc., a global leader in digital payments, facilitates transactions across more than 200 countries and territories, connecting consumers, businesses, financial institutions, and governments through its innovative and secure payment network.

Visa Reports Strong Q4 2025 Financial Results

On October 28, 2025, Visa announced its fiscal fourth quarter and full-year 2025 financial results, highlighting a strong performance with a 12% increase in net revenue for the quarter and an 11% increase for the full year. The company reported a GAAP net income of $5.1 billion for the quarter and $20.1 billion for the year, with significant growth in payments volume, cross-border volume, and processed transactions. Visa’s board of directors declared a quarterly cash dividend of $0.670 per share, reflecting a 14% increase, and the company continued to invest in its Visa as a Service stack to maintain its leadership in the evolving payments ecosystem.

The most recent analyst rating on (V) stock is a Hold with a $315.00 price target. To see the full list of analyst forecasts on Visa stock, see the V Stock Forecast page.

Visa Appoints Bill Ready to Board of Directors

On September 29, 2025, Visa Inc. announced the election of Bill Ready to its board of directors, expanding the board from 11 to 12 members. Bill Ready, currently the CEO of Pinterest and a former leader in the payments industry with roles at Google, PayPal, and Braintree, brings a wealth of experience in digital payments and strategic guidance to Visa. His appointment is expected to enhance Visa’s strategic decision-making in the competitive global payments landscape.

The most recent analyst rating on (V) stock is a Buy with a $386.00 price target. To see the full list of analyst forecasts on Visa stock, see the V Stock Forecast page.

Visa Adjusts Conversion Rates Amid $500M Escrow Deposit

On September 26, 2025, Visa Inc. announced adjustments to the conversion rates of its class B-1 and B-2 common stock following a $500 million deposit into its U.S. litigation escrow account. The conversion rate changes, effective September 25, 2025, resulted in a reduction of the as-converted share count for both classes, impacting earnings per share similarly to a stock repurchase.

The most recent analyst rating on (V) stock is a Buy with a $386.00 price target. To see the full list of analyst forecasts on Visa stock, see the V Stock Forecast page.

Visa Authorizes $500 Million for Litigation Escrow

On September 18, 2025, Visa Inc. authorized a $500 million deposit into its U.S. litigation escrow account as part of its retrospective responsibility plan. This action will result in the dilution of the company’s class B-1 and B-2 common stock, impacting earnings per share similarly to a stock repurchase, and will be executed in line with the company’s certificate of incorporation.

The most recent analyst rating on (V) stock is a Buy with a $391.00 price target. To see the full list of analyst forecasts on Visa stock, see the V Stock Forecast page.

Visa Announces $1.4 Billion Preferred Stock Release

On August 8, 2025, Visa Inc. announced the release of approximately $1.4 billion from its Series B and Series C Convertible Participating Preferred Stock, as part of the fourth mandatory release assessment related to the Visa Europe acquisition. This release, effective August 18, 2025, involves a significant adjustment in the Class A Common Equivalent Number for the Preferred Stock, resulting in a partial conversion into Series A Preferred Stock. The adjustment reflects Visa’s ongoing management of litigation risks associated with multilateral interchange fees in the Visa Europe region, impacting the company’s financial structuring and shareholder equity.

The most recent analyst rating on (V) stock is a Buy with a $375.00 price target. To see the full list of analyst forecasts on Visa stock, see the V Stock Forecast page.