Visa Inc. V is set to report its third-quarter fiscal 2026 results on July 28, 2026, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $3.23 per share on revenues of $11.35 billion.
The estimate for fiscal third-quarter earnings has witnessed one upward movement and no downward revisions over the past 60 days. The bottom-line projection indicates a year-over-year increase of 8.4%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 11.6%.
For fiscal 2026, the Zacks Consensus Estimate for Visa’s revenues is pegged at $45.37 billion, implying a rise of 13.4% year over year. The consensus mark for EPS is pegged at $13.13, suggesting a jump of around 14.5% on a year-over-year basis.
The payments juggernaut has a robust history of surpassing earnings estimates. It beat estimates in each of the last four quarters, with the average being 3.2%???. This is depicted in the graph below:
Visa Inc. Price and EPS Surprise
Visa Inc. price-eps-surprise | Visa Inc. Quote
Q3 Earnings Whispers for Visa
Our proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
Visa has an Earnings ESP of +0.12% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping Visa’s Q3 Results
The Zacks Consensus Estimate suggests a 7.2% increase in total Gross Dollar Volume from the previous year, while our model predicts 7.3% growth. The growing adoption and popularity of digital payment methods are likely to contribute positively to Visa's overall fiscal third-quarter results.
As the company draws revenues as a set percentage of total transaction value every time a customer makes payments with a debit/credit card, higher spending means more revenues in the form of transaction processing fees. The Zacks Consensus Estimate for fiscal third-quarter total processed transactions implies 9.2% year-over-year growth.
The consensus mark for total payment volumes indicates an 8.8% year-over-year increase. We expect the metric for U.S. operations alone to jump nearly 7% year over year. Similarly, our model predicts 14% year-over-year growth in Latin America and 14.6% in CEMEA.
The Zacks Consensus Estimate for data processing revenues indicates 13.6% growth in the fiscal third quarter from the year-ago level of $5.15 billion, while our estimate suggests a 15.3% increase. Similarly, the consensus mark for service revenues suggests 12% year-over-year growth, whereas we expect the metric to grow 13% from $4.33 billion.
Furthermore, the consensus estimate for international transaction revenues indicates 7.9% growth from a year ago. Continuous growth in cross-border volumes is expected to have supported the metric. The FIFA World Cup 2026 event is likely to have provided a boost in June 2026.
The factors stated above are expected to have positioned Visa for strong year-over-year growth in the fiscal third quarter and an earnings beat. However, rising expenses and client incentives (a contra-revenue item) are likely to have partially offset the positive impact of higher volumes.
We expect adjusted total operating expenses for the quarter under review to increase 15.9% year over year due to increased Personnel, Professional Fees, Marketing, and Network and Processing expenses. Also, the Zacks Consensus Estimate for client incentives is pegged at $4.58 billion for the to-be-reported quarter.
Visa Price Performance & Valuation
Visa's stock has gained only 0.8% in the year-to-date period. It still outperformed the industry’s 10.1% fall butunderperformed the S&P 500’s increase of 9.3%. In comparison, its peers like Mastercard Incorporated MA and American Express Company AXP have decreased 6.8% and 5.7%, respectively, during this time.
YTD Price Performance – V, MA, AXP, Industry & S&P 500
Now, let’s look at the value Visa offers investors at current levels.
The company’s valuation looks somewhat stretched compared with the industry average. Currently, Visa is trading at 24.34X forward 12-month earnings, above the industry’s average of 16.95X, but still remains below its five-year median of 25.82X.
In comparison, Mastercard is trading at 24.93X forward 12-month earnings. American Express, on the other hand, is trading at 18.25X now.
How Should You Play Visa Ahead of Q3 Earnings?
Visa enters its fiscal third-quarter earnings report with several factors working in its favor. The company has consistently delivered earnings beats, carries a Zacks Rank #2, and has a positive Earnings ESP, a combination that historically increases the likelihood of another earnings surprise. Healthy payment volumes, resilient cross-border spending, expanding Value-Added Services and growing stablecoin initiatives should continue supporting solid revenue and earnings growth. The FIFA World Cup-related travel activity in June may have provided an additional boost to international transaction revenues.
Beyond the quarter, Visa's long-term investment case remains compelling. The company continues to benefit from the secular shift toward digital payments while successfully expanding into adjacent businesses such as fraud prevention, data services and blockchain-based settlement infrastructure. Its strong cash generation also enables substantial share repurchases and dividend growth, reinforcing shareholder returns.
That said, investors should not ignore the risks. Regulatory scrutiny in the United States and overseas, rising operating expenses, higher client incentives and increasing competition from fintechs and real-time payment networks could weigh on margins over time. In addition, Visa's valuation remains above the industry average, leaving less room for disappointment if results or guidance fall short of expectations.
Overall, with favorable estimate revisions and durable business fundamentals, Visa appears well-positioned heading into earnings. Existing investors should remain confident, while prospective investors may find the stock attractive as the long-term growth story remains intact.
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This article originally published on Zacks Investment Research (zacks.com).