Superworth

Visa V

Financial - Credit Services, Financial Services
$407.92
−1.55%
Market cap
$761.6B
PE
34.7×
10y median 33.8×
Forward PE
28.2×
10y median 28.0×
Price to sales
17.1×
EV/EBIT
27.8×
Revenue, 12 months
$44.5B
+14% on a year ago
Net margin
50.8%
Free cash flow yield
2.8%

A Superworth story

Growing faster, priced below its own habit

Revenue growth picked up to 14%, while a swipe-fee bill and a debit antitrust suit hang over a multiple below its ten-year median

  1. Cheap for Visa, not next to its industry

    Visa runs the network that card payments travel over and takes a small fee on each, so revenue grows with spending and margins stay high. At 31.5 times the last four quarters of earnings, its PE is higher than only 28.6% of the last ten years. The ten-year median is 33.6. The low was 26.2 in September 2022. Its three industry peers trade at a median of 18.5. The gap pays for those margins and steady growth.

  2. Growth sped up this year

    Revenue over four quarters rose from 32.65 billion dollars in September 2023 to 44.49 billion in June 2026, up 36%. Growth ran near 10% a year through 2024 and reached 14.4% in each of the last two quarters.

  3. Less of each dollar reaches reported profit

    Operating margin over four quarters is 60.7%, lower than 87% of the last ten years. Visa's adjusted earnings leave some real costs out. The June quarter excluded a 237 million dollar litigation provision and 563 million of severance. March's provision was 311 million, down from 992 million a year earlier. Lawsuits cost Visa money quarter after quarter, so they are a running cost, not a one-off.

  4. Buybacks make earnings per share grow faster than profit

    Visa returned 9.2 billion dollars to shareholders in the March quarter and 6.2 billion in June, and approved a new 20 billion buyback. Each buyback leaves fewer shares to split the profit. In the year to June, net income rose 11.3% and earnings per share 14.8%. At 32.9 times free cash flow, the stock costs more than 93% of the last five years. Its price to book of 19.7 is above 99% of the last ten years.

  5. The fear is two legal fights over what Visa can charge

    In January the President backed a bill letting merchants route credit card payments to a cheaper network. That could cut Visa's volume and pricing. A Justice Department suit says over 60% of US debit runs on Visa and calls its fees, over 7 billion dollars a year, too high. The stock ranged from 295.52 in March to 384.14 in August. It is now 370.64, 3.5% below that high. A vote or a ruling could move it.

  6. On expected earnings, it still costs less than its habit

    Consensus sees adjusted earnings of 15.01 a share over the next twelve months, up 16.1%, a little faster than sales. That is 24.7 times, against 16.4 for peers. The chart shows 25.6 because it still counts the September quarter, which has ended but not reported. Visa reports it on October 27, with 3.43 a share expected on 12.08 billion of revenue. That is the first test of the growth the price assumes.

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Charts

Financials

Income statement for V, by quarter
Income statementQ4 FY23Q1 FY24Q2 FY24Q3 FY24Q4 FY24Q1 FY25Q2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26
$8.6B+11%$8.6B+9%$8.8B+10%$8.9B+10%$9.6B+12%$9.5B+10%$9.6B+9%$10.2B+14%$10.7B+12%$10.9B+15%$11.2B+17%$11.6B+14%
SG&A$815M+6%$633M−3%$790M+34%$760M+24%$975M+20%$787M+24%$800M+1%$903M+19%$1.1B+15%$925M+18%$995M+24%$1.2B+28%
$5.5B+9%$6B+17%$5.4B+0%$5.9B+18%$6.3B+14%$6.2B+5%$5.4B+2%$6.2B+4%$6.1B−3%$6.7B+8%$7.2B+33%$6.9B+11%
Interest expense$183M+15%$187M+37%$82M−42%$196M+8%$176M−4%$182M−3%$158M+93%$39M−80%$210M+19%$194M+7%$178M+13%$194M+397%
Pre-tax income$5.6B+16%$6B+21%$5.5B+5%$6B+16%$6.4B+13%$6.2B+3%$5.4B−1%$6.3B+6%$6.2B−2%$6.7B+9%$7.2B+32%$6.8B+8%
$955M+3%$1.2B+44%$850M−17%$1.1B+13%$1.1B+10%$1.1B−6%$861M+1%$1.1B−5%$1.1B+8%$873M−19%$1.2B+34%$1.2B+14%
Net income$4.7B+19%$4.9B+17%$4.7B+10%$4.9B+17%$5.3B+14%$5.1B+5%$4.6B−2%$5.3B+8%$5.1B−4%$5.9B+14%$6B+32%$5.6B+7%
$2.27+22%$2.39+20%$2.29+13%$2.40+20%$2.65+17%$2.58+8%$2.32+1%$2.69+12%$2.62−1%$3.03+17%$3.14+35%$2.97+10%
2.1B−2%2B−3%2B−3%2B−3%2B−3%2B−3%2B−3%2B−3%1.9B−3%1.9B−3%1.9B−3%1.9B−3%

Net income: 16 periods, Q4 FY09 to Q4 FY25: printed in the fourth-quarter results release.

EPS, diluted: Q4 FY08: quarter's net income to common over its shares, to the cent. 16 periods, Q4 FY09 to Q4 FY25: printed in the fourth-quarter results release.

Diluted shares: Q4 FY08: a loss quarter: its basic count, share-days: the 12-month average less the 9-month, weighted by days. 17 periods, Q4 FY09 to Q4 FY25: printed in the fourth-quarter results release.

From each company's 10-Q and 10-K filings, the newest version of each figure. Quarters are as filed (a fourth quarter is the year less its first nine months), fiscal years as the 10-K prints them, restated where a later 10-K restated them, and balance sheet lines as of the period's end. A quarter whose 10-Q isn't filed yet is from the company's results release. Growth is on the same period a year earlier. A dash is a period with no figure for the line: the filing doesn't print it, or it hasn't been read yet.

Estimates

Next earnings report: .

QuarterRevenueRangeEPSRangeAnalysts
Q4 FY26$12.1B$12B to $12.2B$3.44$3.40 to $3.4721
Q1 FY27$12.2B$11.9B to $12.4B$3.63$3.56 to $3.7517
Q2 FY27$12.3B$12B to $12.6B$3.67$3.55 to $3.787
Q3 FY27$12.8B$12.5B to $13.1B$3.73$3.61 to $3.8415
Q4 FY27$13.4B$13.1B to $13.7B$3.97$3.85 to $4.099
Q1 FY28$13.4B$13B to $13.7B$4.09$3.96 to $4.217
Q2 FY28$13.6B$13.2B to $13.9B$4.14$4.01 to $4.279
Q3 FY28$14.1B$13.7B to $14.4B$4.20$4.06 to $4.328

Peers

Companies in Financial - Credit Services nearest Visa's size, closest first.

CompanyMarket capPEIts 10y median PEFwd PEP/SRevenue growthNet margin
VVisa$761.6B34.7×33.8×28.2×17.1×+14%50.8%
MAMastercard$546.3B34.3×38.5×29.3×15.6×+16%46.3%
AXPAmerican Express$211.5B17.6×18.7×16.8×2.7×+10%15.8%
COFCapital One Financial$123.5B11.9×12.0×8.8×n/m+31%17.2%
Peer median$211.5B17.6×18.7×16.8×9.1×+16%17.2%

Investors who own it

Investors we follow who held Visa at the end of Jun 30, 2026, from their 13F filings.

More on Visa

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About

Chief executive
Ryan McInerney, since 2023Joined 2013, CEO since 2023.
Industry
Financial - Credit Services
Sector
Financial Services

Valuation data, not investment advice. Prices as of .