Visa Inc. V, a powerhouse in payment processing, continues to thrive on strong financial performance, surging cross-border volumes, and the growing adoption of digital payments. The rebound in international travel and e-commerce is not only driving bottom-line growth but also strengthening investor confidence.
Over the past six months, Visa’s stock has gained 24.4%,outpacing the broader industry, the S&P 500 and its competitors, Mastercard Incorporated MA and American Express Company AXP.
Visa Six-Month Price Performance Comparison
Zacks Investment Research
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After Visa’s impressive run, investors might be wondering: Does this rally have more room to grow, or is it time to cash in? Let’s break down Visa’s latest results, fiscal 2025 outlook and key fundamentals to assess whether the stock remains a buy.
Visa’s Fiscal 2024 & 1Q25 Highlights
Visa delivered strong results in fiscal 2024, with net revenues climbing 10% year over year to $35.9 billion. The momentum carried into the first quarter of fiscal 2025, where net revenue again jumped 10% to $9.5 billion.
Key drivers of growth include higher processed transactions, increased payment volumes, and a continued rise in cross-border activity. On a constant-dollar basis, cross-border volume rose 15% in fiscal 2024 and accelerated to 16% in the first quarter of fiscal 2025.
Visa’s expanding footprint across key regions — including North America, Asia Pacific, Europe, CEMEA and LAC regions — continues to fuel profits. Fiscal 2024 adjusted EPS grew 15% to $10.05, while first quarter fiscal 2025 adjusted EPS increased 14% to $2.75.
Visa boasts a strong surprise history with beating earnings estimates in each of the past four quarters, with an average of more than 3%. The chart below illustrates this trend.
Visa Inc. Price and EPS Surprise
Visa Inc. Price and EPS Surprise
Visa Inc. price-eps-surprise | Visa Inc. Quote
Growing Operations to Aid Visa
Visa continues to see strong momentum in payments volume and processed transactions. In fiscal 2024, processed transactions grew 10%, followed by an 11% increase in Q1 2025. Payments volume also saw steady growth, rising 6.7% in fiscal 2024 and 7.3% in the first quarter of 2025. These expanding volumes remain key revenue drivers.
In the first quarter of fiscal 2025, Visa reported notable year-over-year increases across key revenue segments: Service Revenues rose by 7.5%, Data Processing Revenues by 8.9%, and International Transaction Revenues by 14%. Growth was particularly strong in the CEMEA region, Europe and the United States, highlighting Visa’s increasing global presence. Emerging markets, where a large portion of the population remains underbanked, present further expansion opportunities.
Visa’s strong operating cash flow supports both organic growth and strategic acquisitions, reinforcing its leadership in the payments industry. Investments in partnerships and technological innovation continue to drive cross-border transaction growth and strengthen its competitive edge in the evolving financial ecosystem.
Visa’s Fiscal 2025 Outlook & Zacks Estimates
Visa projects low-double-digit net revenue growth on an adjusted constant-dollar basis for fiscal 2025. Operating expenses are expected to increase in the high single-digit to the low double-digit range. The company also forecasts EPS growth in the low teens for the year. The amortization of acquired intangible assets is projected at around $205 million. Acquisition-related costs are expected to be roughly $100 million.
The Zacks Consensus Estimate for Visa’s fiscal 2025 and fiscal 2026 EPS implies a 12.5% and 12.6% uptick, respectively, on a year-over-year basis. The earnings estimates remained stable over the past week. Also, the consensus mark for fiscal 2025 and fiscal 2026 revenues suggests a 10.2% and 10.3% increase, respectively.
Zacks Investment Research
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Visa is Overvalued
From a valuation perspective, Visa is trading a bit higher than the industry. Going by its price/earnings (P/E) ratio, the company is trading at a forward earnings multiple of 28X, higher than its five-year median of 26.89X and the industry average of 23.04X.Meanwhile, Mastercard and American Express are currently trading at 32.45X and 17.10X, respectively.
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Challenges in Visa’s Path
Visa's business faces challenges from rising expenses and potential regulatory hurdles that could impact its short-term growth. Adjusted operating expenses jumped 10.8% and 11.4% in fiscal 2024 and the first quarter of fiscal 2025, respectively. Also, client incentives (a contra-revenue item) grew 11.9% and 13.4% year over year during those periods.
The company is facing legal challenges in the United States filed by the U.S. Justice Department last September. Also, in the U.K., the company is grappling with issues over interchange fees. Adding to the pressure, the country’s Payment Systems Regulator has proposed capping cross-border interchange fees, and Visa is pushing back, challenging the proposition.
The Credit Card Competition Act of 2023, aimed at injecting more competition in the credit card market and reducing merchant costs, could potentially slow growth for both Visa and Mastercard in the U.S. market. The full impact of regulatory changes and shifting geo-political dynamics are expected to unfold in the coming months, shaping Visa’s competitive landscape.
Then How to Play Visa Stock Now?
Visa’s strong market position, operational resilience and growth potential make it an attractive long-term investment. For existing shareholders, holding onto the stock remains a solid choice. However, for prospective buyers, waiting for a more favorable entry point could be wise, given Visa’s premium valuation and ongoing regulatory risks.
With the stock trading comparatively closer to its 52-week high of $366.54, short-term upside appears limited. As a result, new investors may prefer to stay on the sidelines until a better buying opportunity arises.
Visa currently has a Zacks Rank #3 (Hold), signaling a neutral outlook. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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