Visa (V) is the worst Dow Jones stock Wednesday after the payments giant came up short on both the top- and bottom-lines in its fiscal third quarter.
In the three months ended June 30, Visa's revenue increased 10% year-over-year to $8.9 billion, driven by a 7% increase in payments volume, a 14% rise in cross-border volume and a 10% jump in processed transactions. Its earnings per share (EPS) rose 12% from the year-ago period to $2.42.
The company's strong quarter was helped by stability in its key business drivers, including processed transactions, said Visa CEO Ryan McInerney in a statement. "During the quarter, we expanded our partnerships with many clients around the world and announced several new innovations that will help drive the future of commerce."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Still, Visa's results fell short of analysts' expectations. Wall Street was anticipating revenue of $8.96 billion and earnings of $2.43 per share, according to Bloomberg.
On the Visa's conference call, Chief Financial Officer Chris Suh said the company expects payments volume and processed transactions to grow at a similar rate in the final quarter of its fiscal year, while cross-border volume is expected to be slightly lower.
"Pulling it all together, we expect adjusted net revenue growth in the low double digits, which equates to a slight improvement from the 10% adjusted revenue growth rate in the third quarter," Suh said. He added that earnings per share is forecast to grow "in the high end of low double digits."
Is Visa stock a buy, sell or hold?
Visa shares are in negative territory on a year-to-date basis, but Wall Street is bullish on the blue chip stock. According to S&P Global Market Intelligence, the average analyst target price for V stock is $304.58, representing implied upside of about 19% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm William Blair is bullish on Visa and thinks market participants should be buying the stock.
"We reiterate our Outperform [the equivalent of a Buy]rating and recommend investors allocate new investment dollars to Visa," William Blair analyst Andrew Jeffrey writes in a note to clients. "Our view remains that Visa is a core fintech holding, and we believe that the stock offers through-the-cycle outperformance and relative insulation from momentum-driven technology strategies."
Related Content
-
JPMorgan's Drop Drags on the Dow: Stock Market TodaySmall-cap stocks outperformed Tuesday on expectations that the Fed will cut interest rates on Wednesday.
-
Why Playing It Safe in Retirement Is a Big RiskFear of losing money could actually cost you in retirement. Find out why being too conservative with your life savings can hurt you and how to stop that from happening.
-
Tax Refund Alert: House GOP Predicts 'Average' $1,000 Payouts in 2026Tax Refunds Here's how the IRS tax refund outlook for 2026 is changing and what steps you can take now to prepare.
-
JPMorgan's Drop Drags on the Dow: Stock Market Today
Small-cap stocks outperformed Tuesday on expectations that the Fed will cut interest rates on Wednesday.
-
Meet the World's Unluckiest — Not to Mention Entitled — Porch PirateThis teen swiped a booby-trapped package that showered him with glitter, and then he hurt his wrist while fleeing. This is why no lawyer will represent him.
-
Smart Business: How Community Engagement Can Help Fuel GrowthAs a financial professional, you can strengthen your brand while making a difference in your community. See how these pros turned community spirit into growth.
-
In 2026, the Human Touch Will Be the Differentiator for Financial AdvisersAdvisers who leverage innovative technology to streamline tasks and combat a talent shortage can then prioritize the irreplaceable human touch and empathy.
-
How Financial Advisers Can Deliver a True Family Office ExperienceThe family office model is no longer just for the ultra-wealthy. Advisory firms will need to ensure they have the talent and the tech to serve their clients.
-
Stocks Slip to Start Fed Week: Stock Market TodayWhile a rate cut is widely expected this week, uncertainty is building around the Fed's future plans for monetary policy.
-
December Fed Meeting: Live Updates and CommentaryThe December Fed meeting is one of the last key economic events of 2025, with Wall Street closely watching what Chair Powell & Co. will do about interest rates.
-
Why Investors Shouldn't Romanticize Bitcoin, From a Financial PlannerInvestors should treat bitcoin as the high-risk asset it is. A look at the data indicates a small portfolio allocation for most investors would be the safest.
