Visa Inc. (V)
NYSE:V
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Visa
(NYSE:V)
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Rating:77Outperform
Price Target:
$374.00
▲(24.34% Upside)
Action:ReiteratedDate:02/14/26
The score is driven primarily by strong financial performance (excellent margins and cash generation) and a positive, steady outlook from the latest earnings call. These strengths are tempered by weaker technical momentum (below key longer-term moving averages with negative MACD) and a relatively rich valuation (high P/E and low yield), with corporate events modestly positive but adding some incremental leverage.
Positive Factors
High profitability and cash generation
Consistent high free cash flow, roughly mid-90% of net income, gives Visa durable internal funding for technology investment, fraud and security capabilities, and large capital returns. This strong cash conversion supports buybacks/dividends and cushions the business versus cyclical slowdowns over months.
Negative Factors
Moderating growth and margin drift
Although revenue and net income remain positive, growth appears to be decelerating and recent margin erosion versus 2024 signals less operating leverage. Over 2–6 months this could mean slower EPS upside and tighter reinvestment capacity if mix shifts or macro headwinds persist.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and cash generation
Consistent high free cash flow, roughly mid-90% of net income, gives Visa durable internal funding for technology investment, fraud and security capabilities, and large capital returns. This strong cash conversion supports buybacks/dividends and cushions the business versus cyclical slowdowns over months.
Read all positive factors
Visa (V) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$578.15B
Dividend Yield0.69%
Average Volume (3M)7.75M
Price to Earnings (P/E)28.7
Beta (1Y)0.78
Revenue Growth11.34%
EPS Growth2.76%
CountryUS
Employees28,800
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)3.17
Shares Outstanding1,681,094,000
10 Day Avg. Volume8,297,158
30 Day Avg. Volume7,748,913
Financial Highlights & Ratios
PEG Ratio6.71
Price to Book (P/B)17.49
Price to Sales (P/S)16.57
P/FCF Ratio30.73
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue14.25
Enterprise Value/Gross Profit17.57
Enterprise Value/Ebitda22.18
Forecast
1Y Price Target
$395.57Price Target Upside31.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering26
EPS Forecast (FY)12.86
Revenue Forecast (FY)$44.66B
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...
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 ...
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 Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum — double‑digit revenue and EPS growth, robust payments volume and transaction expansion, outsized growth in value‑added services and commercial solutions, and rapid adoption of tokens and new credential capabilities. Management acknowledged headwinds from unusually low FX volatility, higher marketing/expense timing tied to major events, incentive timing and some client-driven volume shifts, but indicated these are manageable and largely offset by product and service strength. Guidance was maintained (full-year low double-digit net revenue growth) and tax rate guidance improved, supporting an overall positive outlook.Positive Updates
Strong Top-Line Growth
Net revenue rose 15% year over year to $10.9 billion, driven by broad-based demand across products and regions.
Negative Updates
Lower-Than-Expected Currency Volatility
FX volatility was much lower than expected in Q1, creating a drag on international transaction revenue and expected to be a larger headwind for the rest of the year.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Net revenue rose 15% year over year to $10.9 billion, driven by broad-based demand across products and regions.
Read all positive updates
Company Guidance
Visa said it is not changing its full‑year outlook: adjusted and nominal net revenue growth still expected in the low double digits, adjusted operating expense growth in the low double digits, full‑year non‑operating expense now ~$101–$125 million, and a full‑year tax rate of 18.0–18.5% (long‑term 19–20%), implying adjusted EPS growth in the low double digits (slightly higher in the range versus prior). For Q2, the company expects adjusted net revenue growth in the low double digits (a step down from Q1 due to lower pricing contribution, lower volatility, and higher incentive growth), adjusted operating expense growth in the mid‑teens (about 1 point above Q1), non‑operating expense of about $30 million, a Q2 tax rate around 16.5%, and adjusted Q2 EPS growth in the high end of the low‑double‑digit range. Key assumptions driving guidance: macro remains stable, pricing benefits are back‑loaded (majority in back half), incentives to step up into Q2 with Q3 having the highest year‑over‑year incentive growth, and currency/FX volatility assumed to stay at current low levels (creating a larger drag later in the year).Visa Financial Statement Overview
Summary
Income Statement
93
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.39B | 40.00B | 35.93B | 32.65B | 29.31B | 24.11B |
| Gross Profit | 33.56B | 32.15B | 28.88B | 26.09B | 23.58B | 19.14B |
| EBITDA | 26.59B | 26.00B | 25.59B | 22.62B | 19.54B | 17.38B |
| Net Income | 20.79B | 20.06B | 19.74B | 17.27B | 14.96B | 12.31B |
Balance Sheet | ||||||
| Total Assets | 96.81B | 99.63B | 94.51B | 90.50B | 85.50B | 82.90B |
| Cash, Cash Equivalents and Short-Term Investments | 16.40B | 21.99B | 15.18B | 20.13B | 18.52B | 18.51B |
| Total Debt | 21.18B | 25.17B | 20.84B | 20.46B | 22.45B | 20.98B |
| Total Liabilities | 58.04B | 61.72B | 55.37B | 51.77B | 49.92B | 45.31B |
| Stockholders Equity | 38.78B | 37.91B | 39.14B | 38.73B | 35.58B | 37.59B |
Cash Flow | ||||||
| Free Cash Flow | 22.93B | 21.58B | 18.69B | 19.70B | 17.88B | 14.52B |
| Operating Cash Flow | 24.44B | 23.06B | 19.95B | 20.75B | 18.85B | 15.23B |
| Investing Cash Flow | 279.00M | 708.00M | -1.93B | -2.01B | -4.29B | -152.00M |
| Financing Cash Flow | -22.47B | -18.96B | -20.63B | -17.77B | -12.70B | -14.41B |
Visa Technical Analysis
Negative
300.80
Price Trends
315.20
Negative
326.33
Negative
335.18
Negative
Market Momentum
-4.45
Negative
44.91
Neutral
47.88
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 300.8 is below the 20-day moving average (MA) of 304.53, below the 50-day MA of 315.20, and below the 200-day MA of 335.18, indicating a bearish trend. The MACD of -4.45 indicates Negative momentum. The RSI at 44.91 is Neutral, neither overbought nor oversold. The STOCH value of 47.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $578.15B | 28.66 | 54.22% | 0.69% | 11.34% | 2.76% | |
74 Outperform | $447.24B | 31.53 | 198.42% | 0.54% | 15.67% | 18.22% | |
68 Neutral | $209.92B | 23.73 | 33.49% | 0.84% | 8.14% | 9.55% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $24.07B | 8.41 | 21.09% | 1.34% | -6.38% | 19.65% | |
66 Neutral | $41.87B | 10.70 | 25.87% | ― | 4.50% | 19.71% | |
57 Neutral | $114.57B | 53.42 | 2.44% | 1.05% | 19.39% | -77.61% |
* Financial Sector Average
V
Visa
303.33
-2.65
-0.87%
AXP
American Express
305.73
76.74
33.51%
COF
Capital One Financial
184.21
32.76
21.63%
MA
Mastercard
501.50
24.34
5.10%
SYF
Synchrony Financial
69.26
26.22
60.90%
PYPL
PayPal Holdings
45.48
-11.62
-20.36%
Visa Corporate Events
Business Operations and StrategyLegal Proceedings
Visa Plans Successive Exchange Offer Amid Litigation Developments
Positive
Feb 13, 2026
On February 13, 2026, Visa Inc. said its board has authorized the company to proceed with a successive exchange offer for its Class B common stock once specified litigation-related conditions are satisfied. The move follows the initial exchange of...
Private Placements and FinancingRegulatory Filings and Compliance
Visa Raises $3 Billion via Multi-Tranche Senior Notes
Positive
Feb 12, 2026
On February 3, 2026, Visa Inc. announced a multi-tranche senior notes offering totaling $3 billion, comprising unsecured notes maturing between 2029 and 2036 with coupons ranging from 3.800% to 4.700%. The notes, issued on February 12, 2026 under ...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresLegal Proceedings
Visa posts strong Q1 results and raises dividend
Positive
Jan 29, 2026
On January 27, 2026, Visa’s board declared a quarterly cash dividend of $0.670 per share of class A common stock, payable on March 2, 2026 to shareholders of record as of February 10, 2026, underscoring the company’s continued capital ...
Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Visa shareholders approve charter changes and board slate
Neutral
Jan 28, 2026
At its Annual Meeting of Shareholders held on January 27, 2026, Visa Inc. shareholders approved amendments to the company’s certificate of incorporation to limit officer liability as permitted under Delaware law, and Visa subsequently filed ...
Business Operations and StrategyStock BuybackFinancial Disclosures
Visa Updates Class B Conversion Rates After Escrow Deposit
Neutral
Dec 30, 2025
On December 30, 2025, Visa Inc. reported new conversion rates for its class B-1 and B-2 common stock, following a $500 million deposit made on December 23, 2025 into its U.S. litigation escrow account under the company’s U.S. retrospective r...
Business Operations and StrategyLegal Proceedings
Visa boosts litigation escrow, impacting class B share conversion
Neutral
Dec 23, 2025
On December 23, 2025, Visa Inc. authorized a $500 million deposit into its U.S. litigation escrow account established under its U.S. retrospective responsibility plan, a mechanism designed to address certain legal liabilities. Under the plan’...
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.