Investment Rating - The report maintains an "Outperform" rating for Visa with a target price of US$400.60, indicating a potential upside of 21.8% from the current price of US$328.93 [2][7]. Core Insights - In 1Q FY26, Visa's total revenue reached US$15.17 billion, a 14.0% year-over-year increase, slightly above expectations. Net revenue, after deducting client incentives, grew 14.6% year-over-year to US$10.90 billion, also exceeding forecasts [3][11]. - The growth in revenue was driven by strong performance in Commercial and Money Movement Solutions (CMS) and Value-Added Services (VAS), with CMS revenue increasing by 20% year-over-year and VAS revenue up 28% year-over-year [3][11]. - Visa's stablecoin strategy has evolved significantly, with the company expanding its stablecoin card issuance to over 50 countries and achieving an annualized settlement volume of approximately US$4.6 billion by the end of 2025 [5][12]. - Management remains optimistic about the company's outlook, maintaining full-year guidance unchanged, with projected net revenue growth of 11.3% for FY26, supported by resilient global payment trends and strong growth in CMS and VAS [7][16]. Financial Summary - For FY26, Visa expects net revenue of US$44.52 billion, with net profit projected at US$24.32 billion and diluted EPS at US$12.93, reflecting a growth rate of 12.7% [2][3]. - Operating expenses in 1Q FY26 rose by 16.2% year-over-year, influenced by unfavorable foreign exchange impacts and increased marketing expenses [3][11]. - The report highlights ongoing share repurchases totaling approximately US$3.8 billion and cash dividends of about US$1.3 billion, reinforcing Visa's commitment to shareholder returns [3][11].