Visa and Mastercard Earnings Outlook Amidst Consumer Spending Stability

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: 1 hour ago

0mins

V-0.04%

MA+0.42%

Should l Buy V?

Source: seekingalpha

Earnings Release Outlook: Visa is set to report its fiscal second-quarter earnings tomorrow after market close, with analysts estimating adjusted EPS at $3.10 and net revenue consensus at $10.75 billion, indicating stable consumer spending despite geopolitical tensions.
International Transaction Revenue Slowdown: Last quarter, Visa's international transaction revenue growth decelerated to 6% year-over-year from 10% in the previous quarter, with management cautioning that persistently low volumes could pose downside risks for revenues throughout the year, reflecting market caution.
Mastercard Earnings Expectations: Mastercard will report its fiscal first-quarter earnings on April 30, with analysts estimating adjusted EPS at $4.41 and revenue expectations at $8.26 billion, showing resilience in consumer spending supporting network volumes despite external risks.
Cross-Border Transaction Focus: Analysts highlight that Visa and Mastercard's cross-border transaction volume growth is projected at 12% and 13%, respectively, but geopolitical tensions, particularly in the Middle East, may impact overall performance, with Mastercard appearing more vulnerable due to its higher international exposure.

Trade with 70% Backtested Accuracy

Stop guessing "Should I Buy V?" and start using high-conviction signals backed by rigorous historical data.

Analyst Views on V

Wall Street analysts forecast V stock price to rise

25 Analyst Rating

23 Buy

2 Hold

0 Sell

Strong Buy

Current: 309.420

Low

330.00

Averages

406.59

High

450.00

Current: 309.420

Low

330.00

Averages

406.59

High

450.00

Truist

Buy

downgrade

$372 -> $361

2026-04-24

New

Reason

Truist

Price Target

$372 -> $361

AI Analysis

2026-04-24

New

downgrade

Buy

Reason

Truist lowered the firm's price target on Visa to $361 from $372 and keeps a Buy rating on the shares as part of a broader research note previewing Q1 results for Payments and Capital Markets names. The setup feels mostly positive as results of the US Banks point to volume upside for the payments group, growth in consumer spending has accelerated so far throughout 2026, and valuations have reset lower following recent underperformance, the analyst tells investors in a research note. Truist adds however that investors should choose wisely and avoid stocks where there is potential for negative revisions.

BMO Capital

Outperform

initiated

$365

2026-04-21

Reason

BMO Capital

Price Target

$365

2026-04-21

initiated

Outperform

Reason

BMO Capital initiated coverage of Visa with an Outperform rating and $365 price target. Visa is seen as a best-in-class payments company with a strong, diversified business and a defensible, even widening moat, the analyst tells investors in a research note. Despite concerns around alternative payment methods and slowing secular tailwinds, its global scale, expanding services revenue, and growing role in digital credentials support a positive long-term outlook, the firm says.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for V

Unlock Now

About V

Visa Inc. is a global payments technology company. It facilitates global commerce and money movement across more than 200 countries and territories among a global set of consumers, merchants, financial institutions and government entities through technologies. It operates through the Payment Services segment. It provides transaction processing services (primarily authorization, clearing and settlement) to its financial institution and merchant clients through VisaNet, its proprietary advanced transaction processing network. It offers a range of Visa-branded payment products that its clients, including nearly 14,500 financial institutions, use to develop and offer payment solutions or services, including credit, debit, prepaid and cash access programs for individual, business and government account holders. It also provides value-added services to its clients, including issuing solutions, acceptance solutions, risk and identity solutions, open banking solutions and advisory services.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Visa's Financial Performance Remains Strong Amid Challenges

14 hours agoFool

Stable Revenue Growth: Between fiscal 2015 and fiscal 2025, Visa managed to increase its revenue every year except for fiscal 2020, when sales dipped by 5% due to the COVID-19 pandemic, showcasing its business resilience.
Strong Economic Adaptability: Despite facing challenges such as health crises, supply chain bottlenecks, and high inflation, Visa achieved double-digit revenue growth annually from 2020 to 2025, reflecting its robust adaptability in uncertain economic conditions.
Cashless Transaction Trend: Visa benefits from the rising trend of cashless transactions, which positions it advantageously in the shift away from cash and paper-based payments, further driving revenue growth.
Future Growth Expectations: Analysts project Visa's revenue to grow at a compound annual rate of 10.7% between fiscal 2025 and 2028, with adjusted earnings per share expected to rise at an annualized pace of 12.5%, indicating sustained profitability improvements.