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Visa
(NYSE:V)
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Rating:82Outperform
Price Target:
$421.00
â–²(18.34% Upside)
Action:Reiterated
Date:07/29/26
The score is driven primarily by Visa’s exceptional profitability and strong free-cash-flow generation, supported by an uptrend in the share price versus major moving averages. The main constraints are a premium valuation (P/E ~31 with a ~0.7% yield) and near-term margin/growth headwinds highlighted on the earnings call (expense and incentive pressure and international mix/volatility impacts), despite constructive guidance.
Positive Factors
Network scale & market position
Visa’s massive transaction scale and rising payments volume create durable network effects and high switching costs for issuers, acquirers and merchants. Persistent growth in transactions and volume feeds service and data-processing fees, strengthens pricing power, and supports long-term revenue resilience independent of short-term cycles.
Negative Factors
Rising operating expense pressure
Sustained higher operating costs, including large severance and ramped marketing/personnel spend, can erode Visa’s historically wide margins if not offset by higher revenue or efficiency gains. Persistent elevated incentives and expense growth reduce free cash flow expansion and limit capital available for returns or strategic moves.
Read all positive and negative factors
Positive Factors
Negative Factors
Network scale & market position
Visa’s massive transaction scale and rising payments volume create durable network effects and high switching costs for issuers, acquirers and merchants. Persistent growth in transactions and volume feeds service and data-processing fees, strengthens pricing power, and supports long-term revenue resilience independent of short-term 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
$671.05B
Dividend Yield0.73%
Average Volume (3M)8.43M
Price to Earnings (P/E)31.0
Beta (1Y)0.72
Revenue Growth14.39%
EPS Growth14.71%
CountryUS
Employees34,100
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)11.77
Shares Outstanding1,704,112,700
10 Day Avg. Volume6,884,827
30 Day Avg. Volume8,429,467
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$422.78Price Target Upside18.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering27
EPS Forecast (FY)13.22
Revenue Forecast (FY)$45.83B
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:Jul 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presented a strong operating quarter with notable revenue, volume, and product momentum: double-digit top-line growth, record payments volume crossing $4 trillion, 34% growth in value added services, and rapid adoption of new technology and AI. These positives were tempered by higher operating expenses (including $563M in severance), increased client incentives, mix and volatility effects depressing international transaction revenue, and the recognition that some month-to-month gains (e.g., FIFA-related lift and retail timing) may be temporary. Management provided constructive guidance for Q4 and reiterated strategic investments in stablecoins, AI/Agentic Commerce, and issuer-processing expansion (Pismo/DPS), indicating confidence in durable long-term growth despite near-term cost and volatility headwinds.Positive Updates
Strong Top-Line Growth
Net revenue of $11.6 billion, up 14% year over year (13% in constant dollars), driven by stronger-than-expected key business drivers and value added services.
Negative Updates
Operating Expense Pressure
Operating expenses grew 17% year over year, above expectations, driven by higher marketing and personnel expenses and FX balance-sheet remeasurement impacts.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Top-Line Growth
Net revenue of $11.6 billion, up 14% year over year (13% in constant dollars), driven by stronger-than-expected key business drivers and value added services.
Read all positive updates
Company Guidance
Visa guided Q4 net revenue growth in the high end of the low double digits (on an adjusted non‑GAAP, constant‑dollar, excluding acquisitions basis), with Q4 operating expense growth in the low double digits, non‑operating expense of about $80 million, a Q4 tax rate around 19%, and Q4 EPS growth expected in the low end of the mid‑teens; the company said Pismo/Newpay will add roughly 1 point to Q4 net revenue growth, ~1.5 points to Q4 operating‑expense growth and ~0.5 point to Q4 EPS. For the full year Visa now expects net revenue growth in the low end of the low teens, operating‑expense growth in the low end of the low teens, full‑year non‑operating expense of about $165 million, a full‑year tax rate of 18–18.25%, and full‑year EPS growth in the low end of the mid‑teens, assuming continued consumer spend stability, volatility near Q1 levels (a drag versus prior assumptions), and roughly 20% of payments volume renewed by year‑end (implying Q4 incentive growth slightly above Q3).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 | 44.49B | 40.00B | 35.93B | 32.65B | 29.31B | 24.11B |
| Gross Profit | 35.67B | 32.15B | 28.88B | 26.09B | 23.58B | 19.14B |
| EBITDA | 29.10B | 26.00B | 25.59B | 22.62B | 19.54B | 17.38B |
| Net Income | 22.59B | 20.06B | 19.74B | 17.27B | 14.96B | 12.31B |
Balance Sheet | ||||||
| Total Assets | 94.59B | 99.63B | 94.51B | 90.50B | 85.50B | 82.90B |
| Cash, Cash Equivalents and Short-Term Investments | 13.79B | 21.99B | 15.18B | 20.13B | 18.52B | 18.51B |
| Total Debt | 23.86B | 25.17B | 20.84B | 20.46B | 22.45B | 20.98B |
| Total Liabilities | 59.41B | 61.72B | 55.37B | 51.77B | 49.92B | 45.31B |
| Stockholders Equity | 35.18B | 37.91B | 39.14B | 38.73B | 35.58B | 37.59B |
Cash Flow | ||||||
| Free Cash Flow | 21.01B | 21.58B | 18.69B | 19.70B | 17.88B | 14.52B |
| Operating Cash Flow | 22.58B | 23.06B | 19.95B | 20.75B | 18.85B | 15.23B |
| Investing Cash Flow | -451.00M | 708.00M | -1.93B | -2.01B | -4.29B | -152.00M |
| Financing Cash Flow | -27.54B | -18.96B | -20.63B | -17.77B | -12.70B | -14.41B |
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 | $490.33B | 31.14 | 232.46% | 0.62% | 16.15% | 22.59% | |
82 Outperform | $671.05B | 31.05 | 61.26% | 0.73% | 14.39% | 14.71% | |
74 Outperform | $50.64B | 11.37 | 24.42% | 0.75% | 6.32% | 12.89% | |
73 Outperform | $25.84B | 8.12 | 20.94% | 1.65% | -2.40% | 18.50% | |
70 Outperform | $136.46B | 13.85 | 9.28% | 1.48% | 39.21% | -76.14% | |
68 Neutral | $232.36B | 20.84 | 34.12% | 1.09% | 9.41% | 15.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
V
Visa
365.45
22.70
6.62%
AXP
American Express
343.65
39.18
12.87%
COF
Capital One Financial
223.83
3.35
1.52%
MA
Mastercard
567.04
-13.10
-2.26%
SYF
Synchrony Financial
80.08
8.44
11.79%
PYPL
PayPal Holdings
60.59
-8.19
-11.91%
Visa Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresLegal Proceedings
Visa Posts Strong Q3 Results, Boosts Shareholder Returns
Positive
Jul 28, 2026
On July 28, 2026, Visa reported fiscal third-quarter results showing GAAP net income of $5.6 billion, or $2.97 per share, and non-GAAP net income of $6.3 billion, or $3.32 per share, with net revenue up 14% to $11.6 billion, driven by strong growt...
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 ...
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.