Visa Earnings Preview: What to Watch When V Reports Today

Core Viewpoint - Visa is set to report its fiscal Q1 2026 earnings, with consensus estimates predicting an adjusted EPS of $3.14 and revenue of $10.9 billion, both indicating double-digit growth despite a slight decline in net income due to litigation costs [1][2]. Financial Performance - Visa's net income decreased by 1.4% year over year, while revenue increased by 11.5% [1]. - The company has consistently beaten earnings estimates, achieving a 97% success rate since 2008, with recent earnings beats averaging around 3% above consensus [1][2]. - For Q1 FY2026, the expected adjusted EPS is $3.14, reflecting a 14.2% year-over-year growth, and revenue is projected at $10.9 billion, representing a 10.8% increase [1]. Market Sentiment - Visa shares are currently trading 16% below analyst price targets, with 91% institutional ownership, indicating potential volatility in response to earnings guidance [1][2]. - There is a 94.5% probability in prediction markets that Visa will beat earnings expectations, bolstered by heavy trading volume leading up to the earnings report [1]. Key Focus Areas - Analysts will be monitoring cross-border transaction growth, operating expense management, and guidance on digital payments infrastructure, particularly following Visa's recent partnerships in crypto and AI [1]. - The impact of litigation costs on margins and any commentary regarding regulatory risks, such as the Credit Card Competition Act, will also be significant for investor sentiment [1][2].