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Visa Inc (V)
NYSE:V
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Visa (V) AI Stock Analysis

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V

Visa

(NYSE:V)

Rating:80Outperform
Price Target:
$397.00
▲(15.25% Upside)
Visa's overall stock score of 80 reflects its strong financial performance and positive earnings call highlights. The company's robust revenue growth, profitability, and strategic innovations are significant strengths. However, the high valuation and mixed technical indicators present some risks. Visa's ability to manage operating expenses and leverage innovations will be crucial for sustaining its market position.
Positive Factors
Financial Performance
Visa reported the strongest revenue growth in over two years, with revenue and EPS beating expectations due to solid core trends, new pricing, low incentives, and other benefits.
Global Growth
Volume growth accelerated in Asia-Pacific, Europe, CEMEA, and the US, indicating a strong global performance.
Innovation and Technology
Visa's product innovation, such as AI-ready cards, positions the company well for the next era in commerce.
Negative Factors
Commercial Volume Growth
Visa's cross-border performance is softening, and commercial volume lack of acceleration raises questions about future growth.
Cross-Border Volumes
There is a modest slowing of cross-border volumes, which could lead to mixed sentiment as investors await the F2026 guidance.
Topline Growth Concerns
Concerns exist about the durability of Visa's topline growth due to narrowing consumer spend and network volume growth.

Visa (V) vs. SPDR S&P 500 ETF (SPY)

Visa Business Overview & Revenue Model

Company DescriptionVisa 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 MoneyVisa 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 Key Performance Indicators (KPIs)

Any
Any
Transactions
Transactions
Measures the volume of transactions processed, indicating the scale of Visa's network and its ability to generate fee-based revenue.
Chart InsightsVisa's transactions have shown consistent growth, with a notable increase in both payments and processed transactions over recent years. The latest earnings call underscores this trend, highlighting an 11% year-over-year increase in processed transactions and robust growth in digital payments. Visa Direct's expansion, with nearly 3 billion transactions this quarter, further supports this momentum. Despite challenges in the Asia-Pacific region and currency impacts, Visa's strategic focus on digital channels and international partnerships is driving sustained growth and enhancing its market position.
Data provided by:Main Street Data

Visa Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q3-2025)
|
% Change Since: -1.77%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
Visa's third-quarter earnings report shows strong financial performance with record revenue and EPS growth, driven by strong payment volumes, innovations, and value-added services. However, challenges such as currency volatility and increased operating expenses present some concerns.
Q3-2025 Updates
Positive Updates
Record-Breaking Net Revenue and EPS Growth
Visa reported a record $10.2 billion in quarterly net revenue, marking a 14% increase year-over-year. EPS also saw a significant rise, up 23% year-over-year.
Strong Performance in Key Business Metrics
Overall payments volume grew 8% year-over-year in constant dollars, with U.S. payments volume up 7% and international payments volume up 10%. Cross-border volume, excluding intra-Europe, rose 11%, and processed transactions increased by 10% year-over-year.
Innovations and Product Developments
Visa announced several innovations, including the advancement of the Visa-as-a-service stack, Visa Intelligent Commerce, and the expansion of the Flex Credential solution.
Expansion of Commercial and Money Movement Solutions
Commercial payments volume was up 7%, Visa Direct transactions grew 25%, and CMS revenue rose 13% year-over-year in constant dollars.
Value-Added Services Growth
Value-added services revenue increased by 26% year-over-year in constant dollars, driven by strength across all portfolios and pricing.
Negative Updates
Currency Volatility Impact
The growth in international transaction revenue was impacted by currency volatility, hedging losses, and mix changes, which affected the yield dynamic.
Challenges in U.S. Inbound Travel
The U.S. inbound travel corridor, particularly from Canada, was impacted by currency weakness, affecting the overall yield.
Higher Operating Expenses
Operating expenses grew 13%, higher than expected, primarily due to lower-than-expected FX benefits and higher personnel costs.
Company Guidance
In the fiscal third quarter of 2025, Visa reported a robust financial performance with net revenue reaching $10.2 billion, marking a 14% increase year-over-year, and EPS rising by 23% year-over-year. Key business drivers included an 8% year-over-year growth in overall payments volume in constant dollars, with U.S. payment volume up 7% and international payments volume up 10%. Cross-border volume, excluding intra-Europe, saw an 11% rise in constant dollars, and processed transactions grew by 10%. The company also achieved a Net Promoter Score of 76 in its annual global client engagement survey. Visa continued to focus on innovation, particularly in AI and stablecoins, and maintained strong growth across its portfolios, including consumer payments and commercial and money movement solutions. The value-added services sector showed significant growth, with revenue up 26% year-over-year in constant dollars. Visa's strategic investments and focus on client relationships have positioned it well to capture future opportunities in the evolving payments landscape.

Visa Financial Statement Overview

Summary
Visa exhibits outstanding financial health with strong revenue growth, high profitability, and effective cash flow management. The company has demonstrated exceptional profitability metrics, with impressive growth in revenue and margins. The balance sheet is stable with manageable leverage, and cash flow generation is robust, indicating Visa's financial resilience.
Income Statement
92
Very Positive
Visa has demonstrated robust revenue growth, with a 14.27% increase from 2023 to 2024 and a subsequent rise to a TTM total of $37.62 billion. The company's gross profit margin is strong at 79.71%, indicating excellent operational efficiency. Net profit margin remains impressive at 52.85%, reflecting effective cost control. The EBIT and EBITDA margins are also high at 63.67% and 66.88%, respectively, underscoring substantial profitability. Overall, Visa shows a solid growth trajectory with exceptional profitability metrics.
Balance Sheet
85
Very Positive
Visa maintains a solid financial position with a debt-to-equity ratio of 0.55, indicating moderate leverage. The equity ratio stands at 40.95%, suggesting a healthy proportion of assets financed by equity. The return on equity (ROE) is robust at 52.3%, highlighting high profitability relative to shareholder investment. While leverage is manageable, continued monitoring is essential to ensure balance sheet stability.
Cash Flow
90
Very Positive
Visa's cash flow performance is strong, with a free cash flow of $20.51 billion in TTM, showing consistent generation of cash. The free cash flow growth rate from 2023 to TTM is notable at 8.22%, reflecting effective cash management. The operating cash flow to net income ratio is a solid 1.10, indicating efficient conversion of income to cash. Free cash flow to net income ratio is also healthy at 1.03. Visa demonstrates a strong ability to generate and manage cash flows effectively.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue38.89B35.93B32.65B29.31B24.11B21.85B
Gross Profit30.89B28.88B26.09B23.58B19.14B17.33B
EBITDA26.08B25.59B22.62B19.54B17.38B15.07B
Net Income20.23B19.74B17.27B14.96B12.31B10.87B
Balance Sheet
Total Assets100.02B94.51B90.50B85.50B82.90B80.92B
Cash, Cash Equivalents and Short-Term Investments19.18B15.18B20.13B18.52B18.51B20.04B
Total Debt25.14B20.84B20.98B22.45B20.98B24.64B
Total Liabilities61.36B55.37B51.77B49.92B45.31B44.71B
Stockholders Equity38.66B39.14B38.73B35.58B37.59B36.21B
Cash Flow
Free Cash Flow22.08B18.69B19.70B17.88B14.52B9.70B
Operating Cash Flow23.48B19.95B20.75B18.85B15.23B10.44B
Investing Cash Flow988.00M-1.93B-2.01B-4.29B-152.00M1.43B
Financing Cash Flow-20.03B-20.63B-17.77B-12.70B-14.41B-3.97B

Visa Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price344.47
Price Trends
50DMA
350.37
Negative
100DMA
347.57
Negative
200DMA
335.39
Positive
Market Momentum
MACD
-2.90
Negative
RSI
49.43
Neutral
STOCH
85.37
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For V, the sentiment is Neutral. The current price of 344.47 is below the 20-day moving average (MA) of 344.76, below the 50-day MA of 350.37, and above the 200-day MA of 335.39, indicating a neutral trend. The MACD of -2.90 indicates Negative momentum. The RSI at 49.43 is Neutral, neither overbought nor oversold. The STOCH value of 85.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$527.73B39.38177.90%0.51%14.55%13.25%
80
Outperform
$663.66B34.0051.18%0.69%11.38%7.43%
78
Outperform
$66.14B14.8222.92%4.05%13.85%
77
Outperform
$214.14B21.6132.58%1.00%8.03%6.26%
70
Outperform
$141.38B18.567.90%1.11%6.98%-6.76%
65
Neutral
£5.47B8.789.49%5.10%10.05%-13.15%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
V
Visa
344.47
79.86
30.18%
AXP
American Express
305.47
54.15
21.55%
COF
Capital One Financial
215.43
74.22
52.56%
MA
Mastercard
581.70
117.39
25.28%
PYPL
PayPal Holdings
69.23
-0.20
-0.29%

Visa Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Visa Announces $1.4 Billion Preferred Stock Release
Neutral
Aug 8, 2025

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.

DividendsBusiness Operations and StrategyFinancial Disclosures
Visa Reports Strong Q3 2025 Financial Results
Positive
Jul 29, 2025

Visa reported strong financial results for its fiscal third quarter of 2025, with a 14% increase in net revenue to $10.2 billion and a GAAP net income of $5.3 billion. The company saw significant growth in payments volume, cross-border volume, and processed transactions. Visa’s continued focus on innovation and product development in areas like AI and stablecoins is expected to shape the future of commerce and deliver long-term value for shareholders. The board also declared a quarterly cash dividend of $0.590 per share, payable in September 2025.

The most recent analyst rating on (V) stock is a Buy with a $325.00 price target. To see the full list of analyst forecasts on Visa stock, see the V Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Visa Amends Bylaws to Enhance Shareholder Engagement
Neutral
Jul 23, 2025

On July 22, 2025, Visa Inc. amended its Bylaws to introduce a cure process for deficiencies in director nomination notices submitted by shareholders. This amendment allows shareholders to address any deficiencies in their nomination notices within a specified time frame, potentially impacting the company’s governance and shareholder engagement processes.

The most recent analyst rating on (V) stock is a Buy with a $325.00 price target. To see the full list of analyst forecasts on Visa stock, see the V Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Visa Issues €3.5 Billion in Senior Notes
Positive
May 15, 2025

On April 30, 2025, Visa Inc. announced the offering of €3.5 billion in senior notes with varying maturity dates from 2028 to 2044. These unsecured notes, issued on May 15, 2025, are part of Visa’s strategy to strengthen its financial position and provide flexibility in capital management, potentially impacting stakeholders by enhancing the company’s ability to invest in growth opportunities.

The most recent analyst rating on (V) stock is a Buy with a $325.00 price target. To see the full list of analyst forecasts on Visa stock, see the V Stock Forecast page.

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.Date of analysis: Aug 15, 2025