Visa Inc. V, the payments technology powerhouse, delivered impressive first-quarter fiscal 2025 results, driven by higher payments volume, processed transactions and cross-border volumes. The company’s expanding global footprint and strong demand for digital payments continue to fuel growth. Additionally, Visa’s ongoing AI investments are strengthening its long-term prospects.

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Since the earnings release, Visa shares have climbed 1.4%, bringing the stock close to its 52-week high of $351.25. This raises the question: Is now the time to take profits, or does Visa still have room to run? Let’s break down the key takeaways from the earnings report.

3 Major Takeaways From Visa’s Q1 Earnings

Earnings & Sales Beat: Visa’s EPS of $2.75 beat the Zacks Consensus Estimate by 3.4% and grew 14% year over year. Also, the top line of $9.5 billion beat the consensus mark by 1.8% and improved 10% from a year ago.

Major Metrics Continue to Rise: Visa’s processed transactions grew 11% year over year to 63.8 billion and beat our model estimate. On a constant-dollar basis, the cross-border volume climbed 16% year over year in the quarter under review. These double-digit growth rates show no turbulence in its business. Also, its payment volumes grew 9% year over year on a constant-dollar basis.

Visa Remains Unfazed: While concerns like inflation, depleting savingsand a tighter macroeconomic environment persist, Visa remains resilient. Since its revenues are tied to payments volume and transactions, shifts in consumer spending habits — such as reduced spending on big-ticket items — have had minimal impact. Visa makes money as long as transactions happen.

For a detailed analysis, read our blog: Visa Q1 Earnings Beat Estimates on Strong Cross-Border Volumes.

Visa’s Network Strength

Visa’s business thrives on network effects, the more consumers and businesses use its payment services, the stronger and more profitable its network becomes. With steady cash flow, the company continues to invest in infrastructure, marketing and promotions, ensuring long-term sustainability. As economies accelerate digital payments adoption, global cashless transactions are set to grow. With a $646.5 billion market cap, dominant market share and an extensive global network, Visa is well-positioned to capitalize on this trend. Even if short-term spending slows, the company’s expanding partnerships, value-added services and strong margins will help maintain resilience.

Visa’s Diversification & Innovation Drive Growth

Visa’s revenue diversification strategy strengthens its ability to generate consistent earnings across economic cycles while reducing risk. Unlike traditional lenders, Visa does not carry credit risk, meaning rising delinquencies have little impact on its financial performance. The company is also expanding its reach through cryptocurrency innovations and digital wallet solutions, bringing more consumers and businesses into its network. Additionally, Visa continues to enhance cybersecurity and fraud prevention, making it a safer choice for both merchants and consumers.

With fraud cases on the rise and AI adoption increasing, Visa’s services are in high demand. The company has embedded AI and generative AI into over 100 products, primarily for fraud prevention and cybersecurity. Visa has invested $3.5 billion in rebuilding its data platform, and the results speak for themselves—its technology helps prevent $40 billion in fraud attempts annually.

Through strategic diversification, innovation, and AI-driven security, Visa is well-positioned for long-term growth.

Visa Continues to Reward Shareholders

Visa remains highly profitable and consistently returns value to shareholders. In the last quarter alone, the company returned $5.1 billion through $3.9 billion in share buybacks and $1.2 billion in dividends. As of Dec. 31, 2025, Visa still had $9.1 billion authorized for future share repurchases. The company regularly increases dividends, with a current yield of 0.68%, almost in line with the industry of 0.67%.

Visa Navigating Regulatory Hurdles

Visa faces regulatory hurdles that could impact its short-term growth. Ongoing and potential legal battles may lead to financial liabilities and increased competition. In September 2024, the U.S. Justice Department filed an antitrust lawsuit against the company. However, many investors saw the resultant dip in the stock as a buying opportunity.

Another challenge is the Credit Card Competition Act of 2023, which aims to increase competition and lower merchant costs. This legislation targets both Visa and Mastercard Incorporated MA, aiming to curb their duopoly outside the Eastern Hemisphere, where UnionPay dominates. The full impact of regulatory changes and shifting political dynamics will unfold in the coming months, shaping Visa’s competitive landscape.

Favorable Estimates for Visa

The Zacks Consensus Estimate for Visa’s fiscal 2025 and fiscal 2026 EPS implies a 12.1% and 12.7% uptick, respectively, on a year-over-year basis. Similarly, the consensus mark for fiscal 2025 and fiscal 2026 revenues suggests a 10% and 10.3% increase, respectively. It witnessed upward earnings estimate revisions in the past week.

The company beat earnings estimates in each of the past four quarters, with an average of more than 3%. This is depicted in the figure below.

Visa’s Price Performance & Valuation

Visa stock has grown 26.5% in the past year, outperforming the industry’s gain of 19.5% and the S&P 500 Index’s rally of 20.9%. In comparison, its peers like Mastercard and American Express Company AXP have gained 22.6% and 49.2%, respectively, during this time.

One-Year Price Performance Comparison – V, MA, AXP, Industry & S&P 500

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From a valuation perspective, Visa is trading a bit higher than the industry, indicating investor confidence. Going by its price/earnings ratio, the company is trading at a forward earnings multiple of 29.50X, higher than the industry average of 26.03X.  

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Meanwhile, Mastercard and American Express are currently trading at 34.57X and 20.33X, respectively.

Final Verdict: Visa is a Buy

Visa remains a top-tier long-term investment backed by strong fundamentals and a bullish technical setup. The stock currently trades below the Wall Street average price target of $372.76, suggesting a 7.28% upside from current levels.

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With shares above the 50-day and 200-day moving averages, momentum is on Visa’s side. The company’s dominant market position, extensive network, and resilient business model provide stability, while its growth investments in AI, cybersecurity, and digital payments fuel expansion. Visa’s high profitability, strong estimates and consistent shareholder returns make it a compelling buy — even at today’s prices — for investors seeking exposure to the booming digital payments sector.

Visa currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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