Visa (V) Moves Higher as Investors See the Stock is a Deal with Solid Upside

Stock (Symbol)

Visa (V)

Stock Price

$366

Sector

Data is as of

Expected to Report

Company Description

Visa is a payments technology company that provides digital payments across more than 200 countries and territories.

The Company connects consumers, merchants, financial institutions, businesses, strategic partners and government entities to electronic payments.

The Company’s transaction processing network, VisaNet, facilitates authorization, clearing and settlement of payment transactions and enables it to provide its financial institution and merchant clients with a range of products, platforms and value-added services.

Its products/services include transaction processing services and Visa-branded payment products.

The Company also offers Tink, an open banking platform that enables financial institutions, fintech and merchants to build financial products and services and move money. Tink enables its customers to move money, access aggregated financial data, and use smart financial services such as risk insights, and others. Source: Refinitiv

Sharek’s Take

Visa is the world leader in digital payments. The company operates a global network spanning more than 175 million merchant locations across 200 countries and territories, supporting around 5 billion payment credentials and connecting nearly 14,500 financial institution clients that choose to participate in the network. with more than 15,000 financial institutional clients. Visa was founded more than 60 years ago with the idea to make payments between consumers and businesses, also known as C2B. Today, Visa is working on expanding the ways that money can flow digitally, via person-to-person payments (P2P), business-to-consumer transactions (B2C), and business-to-business (B2) transactions. Visa has a catalyst in Visa Direct. Visa Direct allows people to move money between bank accounts globally, including friends and family. Visa Direct had 12.6 billion transactions in 2025, up 27% year over year. In addition, Visa has also continued to enhance its credentials:

• Tap To Pay refers to contactless payments experiences where a customer taps their card or device (e.g., mobile phone) at a merchant’s terminal to pay. Its penetration exceeded 80% globally, with U.S. adoption near 70%. The company had launches in San Francisco and over 10 other transit systems worldwide.
• Visa Flex Credential lets a single Visa card access multiple funding sources such as debit, credit, multicurrency accounts and installments, among others. This continued to gain traction and now total around 20 million.
• Visa Token digitally replaces real card details (like the 16-digit Primary Account Number) with a unique token that is used for authorization, protecting the actual card number from exposure. Visa Token reached 17.5 billion tokens globally, more than 3 times the number of physical cards, further expanding Visa’s digital transaction footprint. Recently, Visa introduced Intelligent Commerce Connect, a system designed to make it easier for AI-powered shopping assistants to conduct transactions on behalf of users. This helps standardize and secure how automated “agent” systems can shop and pay online.
• Visa-enabled stablecoin is the integration of stablecoins into the payments ecosystem so they can be used alongside traditional Visa payments. It lets users spend stablecoin balances in everyday transactions. Visa-enabled stablecoin was issued in nine countries, surpassing 50 nations globally.

V has been a great stock for conservative investors. It has an excellent safety rating, an Estimated Long-Term Growth Rate (Est. LTG) of 13%, a dividend yield of less than 1%, and a stock buyback program. This stock is appreciated among institutional investors for its consistent sales/profit/stock growth. Its business model doesn’t rely on a big sales or R&D budget, so management has loads of cash coming in to buy back stock. In Fiscal 2025, management recorded $22.8 billion in share repurchases and dividends. Visa is part of the Conservative Growth Portfolio and Growth Portfolio. With money flowing into AI stocks, and leaving financial transaction stocks, V is a good value now with ample upside.

One Year Chart

This stock has a nice upside. The P/E is just 24 this quarter, same as last qtr. Note I calculated this P/E on next year’s (2027) profit estimates because the company is in its Fiscal Q4. My Fair Value is a P/E of 32.

The Est. LTG is 13%, slightly down from 14% last quarter. Visa had been a 17% grower for decades.

Quarterly profit growth slowed from 20% to 11% last quarter, but is expected to reaccelerate to 15% next quarter.

Earnings Table

Last quarter, Visa delivered 11% profit growth and beat estimates of 8%. Revenue posted 14% year-on-year growth and surpassed estimates of 12%.

Revenue growth was driven by strong growth in payments volume, cross-border volume and processed transactions, as well as value-added services.

• Consumer payments volume remained the foundation, with payments up 11%, cross-border volume 15%, and processed transactions 10% year over year. This was primarily driven by continued consumer spending resilience.
  • US payments volume grew 10%, while international payment volume increased 11%.
  • Credit card and debit card use were up 10% and 11%, respectively.
• Value-added services grew 34% fueled by a combination of higher client adoption, more usage of Visa’s network products, pricing, and growth in advisory/marketing services.
• Commercial and money movement solutions rose 17%, driven primarily by strong client performance, cross-border volume, and a 21% expansion of Visa Direct transactions.
• In last quarter’s earnings call, management highlighted the strength in market services engagements related to the FIFA World Cup in June, particularly increased payment volume from global travel and spending. In the U.S., host cities experienced strong increases in card-present transactions on match days, with some cities seeing growth of up to 20%, while inbound cross-border card-present spend in host cities rose nearly 25% year over year.

Annual Profit Estimates are up this quarter. Management expects the company’s revenue for the entire fiscal year to grow at the lower end of the low teens range. Visa’s Fiscal Year ends of September 30.

Quarterly Profit Estimates are 15%, 15%, 11%, and 12% growth over the next 4 quarters. For the next quarter, analysts think revenue will climb 13%. Visa management expects revenue growth for next quarter in the high-end of low-double digit range, if you can figure out what that means.

Fair Value

The stock currently has a P/E of 28 when we look at this year’s profit estimates.

But V has a Fiscal Year end on September 30th. So let’s now look ahead to Fiscal 2027.

My Fair Value is a P/E of 32, or $480 a share. That’s around 31% upside for the next year.

The stock has 49% upside for 2028, in my opinion.

Bottom Line

Visa’s (V) a well oiled machine, with consistent revenue and profit growth.

Visa is underappreciated right now, but the stock has very good potential. Also, growth is good with revenue growth the best its been since 2022.

V ranks 8th in the Conservative Portfolio Power Rankings.

The stock moves from 22nd to 23rd in the Growth Portfolio Power Rankings.

Power Rankings

23 of 31

Focus List

N/A

Conservative Stock Portfolio

8 of 19