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Visa Stock Surges on Strong Q2 Beat
29 Apr
Summary
- Visa surpassed revenue, EBITDA, and EPS expectations in fiscal Q2.
- Cross-border travel growth slowed to 5% in April.
- Evercore ISI raised Visa's price target to $350, indicating 8% upside.
Visa Inc. reported impressive fiscal second-quarter results for 2026, surpassing both earnings and revenue projections. The company achieved an earnings per share (EPS) of $3.31, exceeding the anticipated $3.10, and its revenue reached $11.2 billion, higher than the expected $10.75 billion. These strong financials led Evercore ISI to raise its price target on Visa stock to $350 from $340, maintaining an "In Line" rating.
Despite the positive financial report, cross-border travel growth experienced a sharp deceleration, dropping to 5% in April from approximately 10% in the prior quarter. This slowdown was attributed to factors including Ramadan timing and weakness in the CEMEA region. Evercore ISI's revised 12-month price target of $350 suggests an 8% upside potential, although questions remain regarding the sustainability of Visa's performance and its implications for future growth.
The company also modestly raised its fiscal 2026 guidance, a positive surprise given the current global macroeconomic challenges. This beat was significantly influenced by growth in sports-related value-added services and reduced incentive payouts. According to InvestingPro data, Visa holds a market cap of $589.4 billion and trades at a P/E ratio of 29.05, with the platform's Fair Value analysis suggesting the stock may be undervalued.
