TLDR
- Visa will report Q2 2025 earnings on April 29, with analysts expecting EPS of $2.68, up 6.8%
- Revenue projected at $9.55 billion, a 9% increase from the year-ago quarter
- Visa has beaten earnings estimates for nine consecutive quarters
- TD Cowen maintains “Buy” rating but reduced price target to $370 from $382
- Options traders anticipate a 5.16% stock price move in either direction after earnings
Visa Inc. (NYSE: V) is set to release its second-quarter 2025 earnings report on April 29, with Wall Street keeping a close eye on the payment technology giant. The company’s stock has gained over 6% year-to-date, showing resilience in what has been a challenging market environment so far this year.
Analysts expect Visa to post earnings of $2.68 per share, representing a 6.8% increase compared to the same quarter last year. Revenue is projected to reach $9.55 billion, up 9% from the year-ago quarter, according to data from TipRanks.
Visa’s track record speaks for itself. The company has beaten earnings estimates for nine consecutive quarters, establishing a pattern of consistent outperformance that has helped maintain investor confidence.
TD Cowen analyst Bryan Bergin recently adjusted his outlook on Visa. While maintaining a “Buy” rating, he reduced his price target from $382 to $370. Bergin expects Visa to meet or slightly exceed Wall Street expectations for the second quarter.
The analyst noted that March quarter payment volumes appear stable. However, he cautioned that the consumer spending outlook has become less clear in recent weeks.
Competitive Positioning
Bergin believes Visa is currently better positioned than competitors like Mastercard (NYSE: MA). This advantage stems from Visa’s greater reliance on debit transactions rather than credit, along with its stronger presence in the U.S. market.
International transactions have been a growth driver for Visa. According to Main Street Data, the company’s revenues from international transactions reached $13.1 billion in 2024, marking a 10% year-over-year increase.
Another factor working in Visa’s favor is its proactive approach to expense management. Bergin highlighted that Visa’s early cost-cutting measures provide flexibility to protect earnings even if growth slows.
Despite these positive factors, Bergin warned that growth could decelerate in the second half of the year as consumer spending faces headwinds.
Market Expectations
Options traders are providing insight into expected stock price movement following the earnings announcement. Using TipRanks’ Options tool, which calculates the at-the-money straddle of options expiring closest to the announcement, traders are anticipating a 5.16% swing in either direction.
The broader analyst community remains overwhelmingly positive on Visa stock. TipRanks reports a “Strong Buy” consensus rating based on 23 Buy recommendations and six Hold ratings assigned in the past three months.
The average price target sits at $381.09 per share, suggesting a potential upside of 13.52% from current levels.
Long-Term Outlook
Looking beyond the upcoming earnings report, many analysts view Visa as a strong candidate for long-term investment portfolios. The company’s transition from primarily focusing on consumer payments to becoming a diversified platform with value-added services creates multiple growth avenues.
William Blair analyst Andrew Jeffrey has pointed to Visa’s internal execution and technology investments as key drivers for future financial performance, particularly for adjusted EPS growth.
Visa processed a staggering $13.4 trillion in payment volume across 240 billion transactions during 2024. Despite this massive scale, substantial growth opportunities remain, particularly in capturing the approximately $11 trillion still transacted through cash and checks.
Wedgewood Partners, an investment management firm, highlighted Visa as a top contributor to their portfolio performance in Q1 2025. In their investor letter, they noted Visa’s 10% revenue growth and 14% adjusted earnings per share growth, driven by strong cross-border payment volume growth of 16%.
As global payments continue their digital transformation, Visa’s network effects, brand recognition, and technological capabilities position it to capitalize on changing consumer and business behaviors.
The first months of 2025 have been challenging for investors, according to Ameriprise Financial. Leading U.S. stock indexes ended the first quarter lower than expected, contradicting projections that stocks would continue their upward trajectory after two strong years of returns.
Market uncertainty has increased due to tariff concerns, rising recession odds, and growing global trade tensions. Despite these headwinds, firms like Ameriprise believe the long-term bullish case for quality stocks remains intact.
For investors looking beyond short-term market stress, Visa’s fundamental business strength and growth potential make it a stock worth watching when it reports earnings next week.
