Visa (V) AI Stock Analysis

• Market Cap: $659.93B
• Dividend Yield: 0.71%
• Average Volume (3M): 6.35M
• Price to Earnings (P/E): 34.2
• Beta (1Y): 0.73
• Revenue Growth: 11.34%
• EPS Growth: 2.76%
• Country: US
• Employees: 28,800
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 2.98
• Shares Outstanding: 1,685,772,200
• 10 Day Avg. Volume: 6,879,585
• 30 Day Avg. Volume: 6,346,385
• PEG Ratio: 5.18
• Price to Book (P/B): 17.44
• Price to Sales (P/S): 16.53
• P/FCF Ratio: 30.64
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 16.69
• Enterprise Value/Gross Profit: 20.77
• Enterprise Value/Ebitda: 25.67
• 1Y Price Target: $401.26
• Price Target Upside: 16.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 27
• EPS Forecast (FY): 12.79
• Revenue Forecast (FY): $44.42B

• Rating: 70 Outperform
• Price Target: $360.00 ▲(4.53% Upside)

Visa's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust growth and innovation initiatives position it well for future success. However, the technical analysis indicates bearish momentum, and the high valuation may deter value-focused investors.

Positive Factors

Network Expansion

Expanding the network to 12 billion endpoints enhances Visa's global reach and transaction capabilities, solidifying its market position.

Innovation in Payment Technologies

Visa's focus on innovation, exemplified by Visa Direct's growth, strengthens its competitive edge and supports long-term revenue growth.

Strategic Partnerships

Partnerships like OwlPay Cash expand Visa's service offerings and market reach, enhancing its revenue streams and competitive position.

Negative Factors

Operating Expenses Increase

Rising operating expenses can pressure margins and reduce profitability, potentially impacting Visa's financial flexibility and growth.

Latin America Volume Deceleration

Deceleration in Latin America could signal challenges in maintaining growth in emerging markets, affecting Visa's global revenue potential.

Litigation Settlement Impact

The settlement may alter fee structures, impacting Visa's revenue model and requiring strategic adjustments to maintain profitability.

Visa Business Overview & Revenue Model

Company Description

Visa Inc. operates as a payments technology company worldwide. The company facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. In addition, the company offers card products, platforms, and value-added services. It provides its services under the Visa, Visa Electron, Interlink, VPAY, and PLUS brands. Visa Inc. has a strategic agreement with Ooredoo to provide an enhanced payment experience for Visa cardholders and Ooredoo customers in Qatar. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California.

How the Company Makes Money

Visa primarily generates revenue through its transaction processing fees, which are charged to financial institutions for every transaction processed on its network. The company earns interchange fees from merchants, which are a percentage of the transaction value, and a portion of this is shared with issuing banks. Additionally, Visa charges assessment fees based on the volume of transactions processed by each bank. Significant partnerships with financial institutions, fintech companies, and technology providers enhance Visa's service offerings and expand its market reach, contributing to its overall 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. While there are minor fluctuations in growth rates, the overall trajectory remains positive, positioning Visa well for future growth and stability.

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	32.15B	32.15B	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: Positive
• Last Price: 344.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 344.41 is above the 20-day moving average (MA) of 333.24, above the 50-day MA of 337.45, and above the 200-day MA of 343.26, indicating a bullish trend. The MACD of 2.31 indicates Negative momentum. The RSI at 60.34 is Neutral, neither overbought nor oversold. The STOCH value of 82.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for V.

Visa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXP	80 Outperform	$262.28B	25.57	33.70%	0.84%	8.14%	9.55%
PYPL	76 Outperform	$57.38B	12.30	24.36%	―	4.50%	19.71%
MA	75 Outperform	$508.28B	36.20	185.74%	0.54%	15.67%	18.22%
SYF	72 Outperform	$30.03B	9.11	21.64%	1.38%	-6.38%	19.65%
COF	71 Outperform	$153.60B	102.47	1.53%	1.09%	19.39%	-77.61%
V	70 Outperform	$659.93B	34.18	51.54%	0.71%	11.34%	2.76%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Visa Corporate Events

Visa Reaches Settlement in Interchange Fee Litigation

On November 10, 2025, Visa Inc. reached a proposed settlement in a long-standing multi-district litigation concerning payment card interchange fees and merchant discounts. The settlement, which involves Mastercard and other defendants, aims to provide U.S. merchants with more flexibility in accepting payments, including options for credit surcharging and choosing which types of credit cards to accept. Additionally, the settlement includes a reduction in interchange rates and introduces a merchant education program. This agreement, pending court approval, is expected to impact Visa’s operations by potentially altering its fee structures and enhancing merchant relations.

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.

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.

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.

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.