Visa(US:V) ZACKS·2026-02-09 18:10Core Insights - Visa Inc. opened fiscal 2026 with a resilient quarter, showcasing its status as a dependable compounder in the payments technology market [1] - The company reported adjusted earnings of $3.17 per share, a 15% year-over-year increase, and revenue of $10.9 billion, also up 15% [3] - Visa's Value-Added Services segment saw a significant revenue increase of 28%, reaching $3.2 billion, driven by demand for various services [5] Financial Performance - Visa's adjusted earnings beat the Zacks Consensus Estimate by 3 cents, while revenue exceeded expectations by 1.9% [3] - Cross-border volumes grew by 12% on a constant-currency basis, and payment volumes increased by 8% [3] - Processed transactions reached 69.4 billion, marking a 9% year-over-year increase, although slightly below the consensus estimate [3] Value-Added Services - The expansion of Visa's Value-Added Services (VAS) segment is a key growth driver, with revenues surging 28% [5] - The upcoming FIFA World Cup and Olympic Games are expected to further accelerate marketing and analytics services [5] Stablecoins and Digital Infrastructure - Visa is enhancing its role in blockchain-based infrastructure, enabling banks to issue and manage stablecoins [6] - Annualized settlement volumes for stablecoins reached $4.6 billion, indicating growing adoption in cross-border transactions [6] - Management has tempered expectations for stablecoins as mainstream consumer payment tools in developed markets, citing a lack of compelling product-market fit [7] Shareholder Returns - During the quarter, Visa returned $5.1 billion to shareholders, including $3.8 billion in buybacks and $1.3 billion in dividends [11] - The company's dividend yield of 0.81% exceeds that of Mastercard and the industry average [11] Analyst Estimates - The Zacks Consensus Estimate for Visa's fiscal 2026 and fiscal 2027 EPS suggests increases of 11.9% and 13.3%, respectively [12] - The consensus for fiscal 2026 and fiscal 2027 revenues indicates growth of 11.3% and 10.2% [12] Valuation and Market Performance - Visa's stock is trading at 24.65X forward price/earnings, above the industry average of 19.28X [16] - Over the past three months, Visa shares declined 1%, outperforming the industry's 3.4% drop [13] Conclusion - Visa's strong fiscal Q1 performance highlights the durability of its transaction-led business model, supported by steady payment growth and robust cross-border volumes [21] - Strategic investments in digital infrastructure and stablecoin settlement enhance its long-term positioning [21]