Key Takeaways Visa and AXP posted earnings beats, but their growth drivers and post-report trajectories diverge.Visa saw strong payments and cross-border gains despite higher expenses and rising client incentives.AXP's premium spending strength, fee income and lower credit-loss provisions lifted EPS sharply.Visa Inc. (V) and American Express Company (AXP) both turned in healthy earnings reports, but the forces propelling their growth continue to diverge in important ways. For investors evaluating which paym ...

Key Points Thanks to its durable growth, incredible profits, and network effect, Visa is a fine business. Before making a portfolio decision, investors must consider a stock’s valuation. 10 stocks we like better than Visa › In its fiscal 2025 (ended Sept. 30), Visa (NYSE: V) showed that its business continues to operate from a position of strength. Revenue and adjusted net income both posted double-digit percentage increases. But the financial stock's price has only climbed 3.8% this year (as of Nov ...

Core Insights - Visa Inc. reported fourth-quarter fiscal 2025 earnings per share (EPS) of $2.98, exceeding the Zacks Consensus Estimate of $2.97, with a year-over-year increase of 10% [1][9] - Net revenues reached $10.7 billion, reflecting a 12% year-over-year growth and surpassing the consensus mark by 1% [1][9] Financial Performance - The strong quarterly results were driven by higher processed transactions, payment, and cross-border volumes, although increased operating expenses partially offset the gains [2] - Processed transactions grew 10% year over year to 67.7 billion, beating the estimate of 67.4 billion [3] - Cross-border volume rose 12% year over year on a constant-dollar basis, with a notable 11% increase excluding transactions within Europe [4] Revenue Breakdown - Service revenues increased 10% year over year to $4.6 billion, attributed to expanding payment volumes, beating estimates by 0.3% [5] - Data processing revenues grew 17% year over year to $5.4 billion, exceeding the Zacks Consensus Estimate of $5.2 billion [5] - International transaction revenues rose 10% year over year to $3.8 billion, driven by higher cross-border volumes, surpassing estimates by 1.1% [6] - Other revenues climbed 21% year over year to $1.2 billion, exceeding estimates by 1.4% [6] Operating Expenses - Adjusted operating expenses increased 13% year over year to $3.6 billion, primarily due to higher personnel costs, general and administrative expenses, and professional fees, which was above the estimate of $3.5 billion [7] - Interest expenses rose 19.3% year over year to $210 million [7] Balance Sheet Highlights - As of September 30, 2025, Visa had cash and cash equivalents of $17.2 billion, up from $12 billion at the end of fiscal 2024 [8] - Total assets increased to $99.6 billion from $94.5 billion at the end of fiscal 2024 [8] - Long-term debt decreased to $19.6 billion from $20.8 billion as of September 30, 2024 [8] - Total equity declined 3.1% year over year to $37.9 billion [8] Cash Flow and Capital Deployment - Visa generated net cash from operations of $6.2 billion in the fiscal fourth quarter, a decline of 6.4% year over year [10] - Free cash flows were recorded at $5.8 billion, down 8% year over year [10] - The company returned $6.1 billion to shareholders through share buybacks and dividends, with $24.9 billion remaining under its repurchase program as of September 30, 2025 [11] Fiscal Year 2025 Overview - For fiscal 2025, Visa achieved net revenues of $40 billion, marking an 11% year-over-year increase, with adjusted EPS rising 14% to $11.47 [12] - Payments volume increased 8% year over year on a constant-dollar basis, with processed transactions totaling 257.5 billion, a 10% year-over-year increase [12] Outlook for Fiscal Year 2026 - For fiscal 2026, management anticipates low double-digit growth in net revenues and operating expenses on an adjusted nominal-dollar basis, with EPS expected to grow in the low double-digits [14]

Core Insights - Visa reported fiscal 4Q results with earnings per share (EPS) and revenue exceeding Wall Street estimates by approximately 1% each [2] - The company provided guidance for fiscal year 2026, projecting revenue growth in the low double digits, surpassing expectations for high single-digit growth [2] - Consumer spending trends remain strong, with year-over-year growth in US spending steady at around 7% [2] Company Performance - Visa's diverse business model contributed to solid growth across key metrics over the past year [3] - The CEO highlighted healthy consumer spending as a key driver of the company's performance [3] Future Outlook - Visa is focusing on future investments, particularly in providing payment services to the AI industry and technology giants [3]

Core Insights - Volume growth has accelerated in the latest quarter, indicating robust payment activity [1] Group 1 - The increase in volume growth suggests a positive trend in payment processing [1]

Visa, Inc. (NYSE:V) released its fourth-quarter earnings report after Tuesday's closing bell.Here's a look at the key figures from the quarter. V stock is moving. See the real-time price action here.The Details: Visa reported quarterly earnings of $2.98 per share which beat the analyst estimate of $2.97. Quarterly revenue came in at $10.72 billion which beat the analyst consensus estimate of $10.61 billion and was up from revenue of $9.61 billion from the same period last year.Read Next: Amazon To Cut Up To ...

Core Insights - PayPal Holdings (PYPL) reported third-quarter 2025 non-GAAP earnings per share (EPS) of $1.34, exceeding the Zacks Consensus Estimate of $1.19 and reflecting an 11.7% year-over-year increase [1][9] Financial Performance - Net revenues reached $8.42 billion, marking a 7.3% year-over-year increase and surpassing the Zacks Consensus Estimate of $8.26 billion [3][9] - Total payment volume (TPV) was $458.09 billion, up 8.4% year over year on a reported basis [4] - Transaction revenues amounted to $7.52 billion, representing 89.4% of net revenues and a 6.4% year-over-year increase [5] - Value Added Services revenues were $895 million, which rose 14.7% year over year [5] Operational Metrics - Total active accounts grew by 1.4% year over year to 438 million, while total payment transactions decreased by 4.5% to 6.33 billion [6] - Operating expenses were $6.90 billion, up 6.8% year over year, with an operating margin of 18.1% [7] Guidance and Future Projections - The company raised its full-year guidance for non-GAAP EPS to a range of $5.35-$5.39, indicating a 15-16% growth year over year [11] - Transaction margin dollars are projected to be between $15.45 billion and $15.55 billion, suggesting a growth of 5-6% [11] - For the fourth quarter of 2025, non-GAAP EPS is expected to be between $1.27 and $1.31 [12] Cash Flow and Shareholder Returns - PayPal generated $2 billion in cash from operations, with adjusted free cash flow of $2.3 billion in the third quarter [10] - The company returned $1.5 billion to shareholders through share repurchases during the quarter [10] Balance Sheet Strength - As of September 30, 2025, cash, cash equivalents, and investments totaled $14.4 billion, with long-term debt at $11.4 billion [8]

Earnings Reports - United Parcel Service Inc. (UPS) is expected to report quarterly earnings of $1.31 per share on revenue of $20.83 billion [2] - Waste Management Inc. (WM) posted weaker-than-expected results for Q3, leading to a 3.4% decline in shares to $206.50 [2] - Visa Inc. (V) is anticipated to report quarterly earnings of $2.97 per share on revenue of $10.61 billion [2] - Nucor Corp. (NUE) reported Q3 earnings of $2.63 per share, exceeding the analyst estimate of $2.25 per share, with revenue of $8.52 billion, surpassing the consensus estimate of $8.15 billion [2] - PayPal Holdings Inc. (PYPL) is expected to report quarterly earnings of $1.20 per share on revenue of $8.23 billion [2] Stock Performance - UPS shares rose 0.7% to $89.80 in after-hours trading [2] - WM shares fell 3.4% to $206.50 in after-hours trading [2] - Visa shares increased by 0.3% to $348.80 in after-hours trading [2] - Nucor shares slipped 0.6% to $143.24 in after-hours trading [2] - PayPal shares gained 1.3% to $71.15 in after-hours trading [2]

Core Insights - Mastercard and American Express are two prominent players in the payments industry, each with distinct business models and strengths [1][2] - The current financial landscape, influenced by interest rates and consumer spending, is drawing investor interest towards payment stocks [2] Group 1: American Express - American Express operates a closed-loop model, issuing cards and acquiring merchants, which provides insights into consumer spending and fosters brand loyalty among affluent users [3] - In the last reported quarter, American Express's total revenues rose 11% year-over-year to $18.4 billion, driven by increased card member spending and higher loan balances [4] - However, American Express's reliance on high-income consumers makes it vulnerable to economic fluctuations, with provisions for credit losses reaching $3.8 billion in the first nine months of 2025 [5][6] Group 2: Mastercard - Mastercard's asset-light model connects banks, merchants, and consumers without direct lending, allowing it to earn transaction fees while avoiding credit risk [7] - In the last reported quarter, Mastercard's revenue grew 16.8% year-over-year to $8.1 billion, with adjusted operating income rising 18% to $4.9 billion [8] - Mastercard's global diversification and strong presence in emerging markets position it for sustained growth, with a return on capital of 55.5%, significantly higher than American Express's 11.9% [9][10] Group 3: Financial Performance and Valuation - Zacks Consensus Estimates project Mastercard's 2025 sales and EPS to grow by 15.2% and 11.9%, respectively, while American Express's estimates indicate 8.8% sales growth and 14.6% EPS growth [12] - Mastercard's forward P/E ratio is 30.64, reflecting its greater earnings visibility and lower balance-sheet risk compared to American Express's 20.56 [13] - Year-to-date, Mastercard shares have increased by 7.6%, while American Express shares have risen by 17.8% [17] Group 4: Conclusion - Both companies are significant in the payments industry, but American Express faces risks due to its lending exposure and economic sensitivity [19] - Mastercard's diversified model and focus on innovation position it as a stronger choice for investors, with greater return on capital and upside potential [20][21]

Core Viewpoint - U.S. Bancorp is expected to report strong third-quarter earnings, with an EPS of $1.11 and revenue of $7.18 billion, driven by rising net interest income and solid lending activities [1][6]. Financial Performance - The anticipated net interest income (NII) for the third quarter is projected to be between $4.1 billion and $4.2 billion, supported by stable funding costs and strong loan demand [2][6]. - Non-interest income is expected to rise by 1.9% sequentially, reaching approximately $3 billion, highlighting the company's diversified revenue streams [3][6]. Historical Performance - U.S. Bancorp has a history of exceeding earnings expectations, with an average surprise of 2.93% over the past four quarters, indicating potential for surpassing the consensus EPS estimate of $1.11 [4]. Valuation Metrics - The company has a price-to-earnings (P/E) ratio of approximately 10.64 and a price-to-sales ratio of about 1.73, suggesting it is attractively valued [5]. - The enterprise value to sales ratio is around 2.23, and the earnings yield is about 9.4%, while the debt-to-equity ratio stands at approximately 1.29 and the current ratio at around 0.28, indicating areas for improvement in leverage and liquidity [5].