Visa (V) stock is ripping higher on Tuesday after the NYSE-listed credit card company announced plans to lay off roughly 7% of its global workforce. In its press release, the payments giant said it will eliminate about 2,600 roles in total — primarily affecting its worldwide technology and product-focused staff.
Following today’s gains, Visa shares are up about 25% versus their year-to-date low.
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www.barchart.comLayoffs Aren’t Bearish for Visa Stock
According to an internal memo from CEO Ryan McInerney, these layoffs are designed to eliminate operational drag, which is why the market is treating the announcement as constructive for bottom-line health.
By leveraging artificial intelligence (AI) to automate routine coding and product development tasks, Visa is freeing up capital to reinvest in its highest-potential growth pillars.
These include cross-border transactions, commercial B2B payment solutions, and next-generation stablecoin payment infrastructure.
Investors are bidding V shares up because improved operating leverage should expand operating margin and secure durable long-term profitability.
Visa to Report Earnings After Market Close
The layoffs news lands as Visa prepares to release its fiscal Q3 earnings today after market close.
Consensus is for the multinational to record $11.35 billion in revenue on $3.23 in earnings per share (EPS). This will represent an 8.39% EPS increase versus the same quarter last year.
Crucially, options pricing suggests V will push higher after the quarterly print, with the upper price on contracts expiring July 31 set at roughly $380, implying over 3% upside potential through the end of this week.
That said, Visa stock is slightly more expensive to own than peer Mastercard heading into its Q3 release; it’s trading at nearly 16x sales currently versus just over 14.5x for Mastercard (MA).
What’s the Consensus Rating on Visa?
Note that Wall Street analysts also share options traders’ optimism on V stock for the back half of 2026.
According to Barchart, the consensus rating on Visa sits at “Strong Buy” currently, with the mean price target of $404 indicating potential upside of nearly 9% over the next 12 months.
Plus, the payment card services firm pays a small dividend yield of 0.73% as well.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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