SuperworthVisa Inc. V
- Market cap
- $694.8B
- PE
- 31.6×
- 10y median 33.6×
- Forward PE
- Price to sales
- 15.6×
- EV/EBIT
- 25.4×
- Revenue, 12 months
- $44.5B
- +14% on a year ago
- Net margin
- 50.8%
- Free cash flow yield
- 3.0%
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
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.
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.
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.
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.
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.
At today's price, consensus earnings put it at 24.7 times
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.
What has happened lately
- SEC, Visa fiscal third quarter 2026 earnings releaseNet revenue rose 14% to 11.6 billion dollars and adjusted EPS 11% to 3.32. Adjusted results leave out 563 million dollars of severance and a 237 million litigation provision. Visa returned 6.2 billion through buybacks and dividends.
- SEC, Visa fiscal second quarter 2026 earnings releaseNet revenue rose 17% to 11.2 billion dollars and adjusted EPS 20% to 3.31. The litigation provision fell to 311 million from 992 million a year earlier. Visa returned 9.2 billion dollars and authorized a new 20 billion buyback.
- American Banker, Trump backs Durbin-Marshall swipe fee billThe Credit Card Competition Act would require cards from banks with over 100 billion dollars in assets to offer merchants a second, unaffiliated network that is neither Visa nor Mastercard.
- US Department of Justice, Justice Department sues Visa for monopolizing debit marketsThe suit says more than 60% of US debit transactions run on Visa's network, letting it charge over 7 billion dollars a year in fees, and that exclusionary deals with merchants and banks keep those fees above competitive levels.
Headlines link to the original source.
Charts
Financials
| Income statement | Q1 FY24 | Q2 FY24 | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| $8.6B | $8.8B | $8.9B | $9.6B | $9.5B+10% | $9.6B+9% | $10.2B+14% | $10.7B+12% | $10.9B+15% | $11.2B+17% | $11.6B+14% | |
| Cost of revenue | $1.7B | $1.8B | $1.8B | $1.8B | $2B+22% | $1.9B+5% | $2B+11% | $2B+9% | $2B−1% | $2.1B+12% | $2.7B+39% |
| Gross profit | $7B | $7B | $7.1B | $7.8B | $7.5B+7% | $7.7B+11% | $8.2B+15% | $8.7B+12% | $8.9B+19% | $9.1B+18% | $8.9B+9% |
| SG&A | $764M | $950M | $912M | $1.2B | $930M+22% | $973M+2% | $1.1B+20% | $1.4B+18% | $1.1B+22% | $1.2B+27% | $1.4B+28% |
| $6B | $5.4B | $5.9B | $6.3B | $6.2B+5% | $5.4B+2% | $6.2B+4% | $6.1B−3% | $6.7B+8% | $7.2B+33% | $6.9B+11% | |
| Interest expense | $187M | $82M | $196M | $176M | $182M−3% | $158M+93% | $39M−80% | $210M+19% | $194M+7% | $566M+258% | $194M+397% |
| Pre-tax income | $6B | $5.5B | $6B | $6.4B | $6.2B+3% | $5.4B−1% | $6.3B+6% | $6.2B−2% | $6.7B+9% | $7.2B+32% | $6.8B+8% |
| $1.2B | $850M | $1.1B | $1.1B | $1.1B−6% | $861M+1% | $1.1B−5% | $1.1B+8% | $873M−19% | $1.2B+34% | $1.2B+14% | |
| Net income | $4.9B | $4.7B | $4.9B | $5.3B | $5.1B+5% | $4.6B−2% | $5.3B+8% | $5.1B−4% | $5.9B+14% | $6B+32% | $5.6B+7% |
| $2.39 | $2.29 | $2.40 | $2.65 | $2.58+8% | $2.32+1% | $2.69+12% | $2.62−1% | $3.03+17% | $3.14+35% | $2.97+10% | |
| 2B | 2B | 2B | 2B | 2B−3% | 2B−3% | 2B−3% | 1.9B−3% | 1.9B−3% | 1.9B−2% | 1.9B−1% |
From each company's 10-Q and 10-K filings. Fiscal years are four fiscal quarters added up; balance sheet lines are as of the period's end. Growth is on the same period a year earlier.
Estimates
Next earnings report: .
Analyst consensus for the next eight quarters, with the range from the lowest to the highest estimate, is part of Superworth Pro.
Peers
Companies in Financial - Credit Services within ten times Visa's size, closest in size first.
| Company | Market cap | PE | Its 10y median PE | Fwd PE | P/S | Revenue growth | Net margin |
|---|---|---|---|---|---|---|---|
| VVisa Inc. | $694.8B | 31.6× | 33.6× | 15.6× | +14% | 50.8% | |
| MAMastercard Incorporated | $499.4B | 31.4× | 38.6× | 14.2× | +16% | 46.3% | |
| AXPAmerican Express Company | $205.5B | 18.5× | 18.6× | 2.7× | +11% | 15.1% | |
| COFCapital One Financial Corporation | $120.2B | 12.1× | 11.9× | — | +45% | 17.0% | |
| Peer median | $205.5B | 18.5× | 18.6× | 8.5× | +16% | 17.0% |
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 .