Wall Street sentiment on Visa Inc. (V Quick QuoteV - Free Report) is improving after a strong second-quarter fiscal 2026 performance, and estimate revisions are now backing that optimism. Over the past week, the Zacks Consensus Estimate for fiscal 2026 and 2027 EPS saw nine upward revisions each, a strong signal that analysts are growing more confident in Visa’s earnings path.

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For fiscal 2026, Visa’s EPS is now projected at $13.01, implying 13.4% year-over-year growth. For fiscal 2027, the estimate has moved up to $14.74, pointing to another 13.3% increase. Revenue expectations are moving higher, too. Analysts now forecast $44.96 billion in fiscal 2026 revenue and $49.66 billion in fiscal 2027, indicating growth of 12.4% and 10.5%, respectively.

Visa’s consistency adds weight to the optimism. The company has beaten EPS estimates in each of the past four quarters, with an average surprise of 3.2%.

Visa Inc. Price, Consensus and EPS Surprise

Visa Inc. price-consensus-eps-surprise-chart | Visa Inc. Quote

So, what’s driving this confidence? The answer sits in Visa’s Q2 results.

Q2 Was a Clean, High-Quality Beat

Visa posted adjusted earnings of $3.31 per share, up 20% year over year and ahead of the Zacks Consensus Estimate by 7.1%. Net revenues climbed 17% to $11.23 billion, beating expectations by 5.1%.

The underlying transaction engine stayed strong. On a constant-dollar basis, cross-border volume rose 12%, reflecting steady international travel demand and continued strength in global e-commerce. Payment volumes grew 9%, while total processed transactions hit 66.1 billion, up 9% year over year.

Visa’s model is built for scale and stability. Whether consumers are spending on travel, dining, groceries, retail or subscriptions, Visa earns its share simply by keeping the payments flowing. That’s why its results tend to hold up even when consumer behavior shifts.

For more insights, read our blog: Visa Q2 Earnings Beat Estimates on Payment Volume Strength.

VAS Becoming a Bigger Piece of the Story

Value-Added Services (VAS) revenues surged 27% in constant dollars to $3.3 billion, and now make up roughly 30% of Visa’s total net revenues. Growth was fueled by expanding demand for network products and marketing services, both of which carry attractive economics and deepen Visa’s client relationships. With major global sporting events like the FIFA World Cup and the Olympic Games approaching,marketing and analytics demand could stay elevated, helping diversify revenues and lift margin quality.

Visa’s Stablecoin Strategy Is Starting to Scale

Visa’s progress in stablecoins and blockchain infrastructure continues to stand out. While management has been careful not to overhype stablecoins as an everyday consumer payment tool, the numbers suggest real momentum in practical use cases. During fiscal Q2, stablecoin-linked card payment volumes jumped nearly 200% year over year, supported by more than 160 programs worldwide.

Its stablecoin settlement business has reached a $7 billion annual run rate, up more than 50% sequentially. In April 2026, Visa expanded its global stablecoin settlement pilot to support nine blockchains, widening its reach and strengthening its role as a key connector between digital assets and traditional payment rails.

Visa also acknowledged that stablecoins still lack strong everyday use cases in developed markets like the United States, the U.K. and Europe.Digital payments are already fast, smooth and widely accepted, leaving limited urgency for consumers to switch. But cross-border payments remain a different story. Stablecoins can reduce friction, shorten settlement times, lower costs, and improve liquidity, benefits that matter for financial institutions and global enterprises.

Buybacks and Dividends Continue at Full Speed

Visa continues to pair growth with capital returns. During the quarter, the company returned $9.2 billion to shareholders, including $7.9 billion in buybacks and $1.3 billion in dividends. It authorized a new $20 billion multi-year share repurchase program in April. Visa’s dividend yield sits at 0.83%, higher than Mastercard Incorporated’s (MA Quick QuoteMA - Free Report) 0.70%, though still below American Express Company (AXP Quick QuoteAXP - Free Report) at 1.20%.

The Stock Has Held Up, But It’s Not Cheap

Visa shares have gained 6.4% over the past month, slightly ahead of the industry’s 6% rise, though still behind the S&P 500’s 9.9% gain. Mastercard slipped 0.3%, while American Express rose 2.9% over the same period.

1-Month Price Performance: V, MA, AXP, Industry & S&P 500

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Valuation remains elevated, but that’s not new for Visa. The stock is trading at 23.00X forward earnings, well above the industry average of 16.81X, but still below Visa’s five-year median of 26.03X. For comparison, Mastercard trades at 24.16X, while American Express trades at 17.12X. Investors are still paying a premium for Visa’s stability and global dominance.

Image Source: Zacks Investment Research

Key Risks to Monitor

Still, Visa’s outlook isn’t risk-free.Stablecoins could eventually become a disruptive force if major retailers or technology companies launch their own payment ecosystems at scale. If that happens, some transaction volume could bypass traditional card rails, creating long-term pressure on interchange-driven economics.

Visa is also being challenged from two sides. Fintech companies are trying to redesign payment economics from the ground up, while real-time payment networks and upgraded legacy systems are narrowing the gap in speed and efficiency. The more viable alternatives exist, the harder it becomes for Visa to defend premium pricing.

Regulatory scrutiny is another major overhang. In the United States, the Department of Justice has accused Visa and Mastercard of using market dominance to maintain elevated merchant fees. The proposed Credit Card Competition Act could also reshape routing rules, potentially changing how payment networks capture value.

Europe remains sensitive too. In June 2025, the Competition Appeal Tribunal in London ruled that Visa and Mastercard’s multi-lateral interchange fees breached European competition law. The U.K. Payment Systems Regulator is expected to introduce fee caps, which could limit growth in the region. Meanwhile, several U.K. banks are exploring domestic alternatives, which could gradually reduce dependence on U.S.-based card networks.

Conclusion

Visa continues to deliver steady execution, backed by strong payment volume trends, resilient cross-border activity, and accelerating value-added services growth. Its fiscal Q2 results and rising earnings estimates suggest the business remains on a solid track, while stablecoin-linked card volumes and settlement expansion highlight longer-term upside optionality.

However, the stock’s premium valuation limits near-term upside, and rising regulatory scrutiny in the U.S. and Europe remains an overhang. Competition from fintechs and real-time payment networks also adds pressure over time. Given this balance, Visa carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.