Over the past month, Visa Inc.’s V stock has jumped 12.4%, comfortably outpacing the broader industry’s 7.9% growth while the S&P 500 has slipped 0.8%. Rival Mastercard Incorporated MA has advanced 10.8%, while American Express Company AXP has gained an even stronger 15.8%.
The backdrop favored payment giants. With economic uncertainty lingering, investors gravitated toward defensive companies that generate reliable cash flows and produce high-quality earnings. Financial stocks benefited from that shift, while weakness in technology and semiconductor shares weighed on the S&P 500, offsetting gains in other sectors.
Visa One-Month Price Performance Comparison
Estimates for Visa Signal Continued Growth
For fiscal 2026, Visa’s EPS is projected at $13.09, implying a 14.1% year-over-year jump. For fiscal 2027, the estimate has moved up to $14.82, indicating another 13.2% increase. Moreover, analysts project fiscal 2026 revenues of $45.35 billion, up 13.4%, followed by $50.05 billion in fiscal 2027, implying another 10.4% increase.
Visa has topped earnings estimates in each of the past four quarters, delivering an average earnings surprise of 3.2%.
Visa Inc. Price, Consensus and EPS Surprise
Visa Inc. price-consensus-eps-surprise-chart | Visa Inc. Quote
Growth Drivers Remain Intact
Visa has spent years proving skeptics wrong. New payment technologies, fintech startups and digital wallets have repeatedly been viewed as threats, yet the company has continued to grow. The reason is straightforward. Visa does not depend on where consumers spend. Whether purchases involve travel, groceries, restaurants, streaming subscriptions or online shopping, the company earns a fee whenever transactions move across its network. As long as spending continues, Visa participates.
That strength was evident in the second quarter of fiscal 2026. Cross-border volume rose 12% on a constant-dollar basis, supported by resilient international travel and healthy e-commerce activity. Payment volume increased 9%, while processed transactions climbed 9% to 66.1 billion. Net revenues jumped 17% year over year to $11.23 billion.
Another important contributor is Value-Added Services (VAS). Revenues from the business grew 27% in constant dollars to $3.3 billion and now contribute roughly 30% of total net revenues. Products ranging from fraud prevention to marketing and data services deepen customer relationships while generating attractive margins, making the business less dependent on payment volumes alone.
Building a Bigger Role in Digital Payments
Visa is embracing blockchain instead of resisting it. Rather than viewing stablecoins as competition, the company is positioning itself as the infrastructure connecting traditional payments with blockchain networks. That strategy has gained momentum and strengthened investor confidence. Reports linking Visa to the Open USD stablecoin initiative reinforced the view.
During the latest quarter, payment volumes tied to stablecoin-linked cards surged nearly 200% from a year earlier across more than 160 programs worldwide. Visa's stablecoin settlement business reached a $7 billion annual run rate, representing more than 50% sequential growth. In April 2026, the company expanded its settlement pilot from four to nine blockchain networks, giving partners greater flexibility while broadening its reach.
These initiatives reinforce Visa's long-term goal of remaining central to global payments regardless of how money moves.
Shareholder Returns Remain a Priority
Visa's financial strength continues to translate into shareholder returns. During the second quarter, the company returned $9.2 billion to shareholders through $7.9 billion of share repurchases and $1.3 billion in dividends. Management also approved a new $20 billion multi-year buyback authorization in April, underscoring confidence in future cash generation.
Visa currently offers a dividend yield of 0.76%, slightly above Mastercard's 0.67% but below American Express' 1.09%.
A Premium Stock With a Premium Price
Investors continue to assign Visa a premium valuation because of its durable business model, global network and consistent profitability. The stock trades at 24.40X forward earnings, above the industry average of 18.03X but still below its five-year median multiple of 25.86X.
For comparison, Mastercard trades at 24.73X forward earnings, while American Express trades at 18.42X.
The Challenges Investors Should Watch
Visa still faces meaningful risks.
In the United States, the Department of Justice has accused Visa and Mastercard of using their dominant positions to preserve high merchant fees. Meanwhile, the proposed Credit Card Competition Act could introduce more competition into payment routing if enacted.
Regulatory scrutiny is also increasing overseas. Britain's Payment Systems Regulator is considering new disclosure requirements that would provide greater visibility into the companies' U.K. operations, potentially paving the way for future pricing intervention. At the same time, several British banks are exploring domestic payment alternatives that could gradually reduce dependence on U.S. card networks. In Europe, the European Central Bank continues advancing its digital euro project to strengthen regional payment infrastructure.
Competition is evolving as well. Fintech firms, real-time payment networks and upgraded bank payment systems are offering merchants additional ways to move money at lower costs. While Visa argues that its fees support investments in cybersecurity, fraud prevention and network reliability, expanding alternatives could make it harder to sustain premium pricing over time.
Our Call: Buy Visa Stock
Visa continues to execute well across its core business while investing in the next generation of digital payments. Healthy consumer spending, steady cross-border activity, expanding VAS and growing blockchain initiatives provide multiple avenues for sustained growth. Although regulatory scrutiny and rising competition remain risks, Visa's scale, resilient business model and strong cash generation leave it well positioned to navigate these challenges.
With earnings estimates trending higher and the company consistently delivering solid operating results, the long-term investment case remains compelling. Visa currently carries a Zacks Rank #2 (Buy), making the stock an attractive choice for investors seeking steady growth and durable returns.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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