Visa's Blockchain Expansion and AI Fuel Earnings Beat, Countering New Rivals

Visa Inc. (V) reported stronger-than-expected fiscal fourth-quarter results in 2025, driven by robust growth in cross-border payments and AI-powered services, while announcing plans to expand support for stablecoins on four blockchain networks. The company's net revenue rose 12% year-over-year to $10.7 billion, exceeding analyst forecasts of $10.61 billion, with adjusted earnings per share (EPS) reaching $2.98, matching estimates, according to a Seeking Alpha report. CEO Ryan McInerney highlighted the expansion of Visa's network to accommodate "4 stablecoins running on 4 unique blockchains representing 2 currencies," a strategic move to align with evolving digital payment trends, the report added.

The results underscore Visa's resilience amid intensifying competition from AI-driven platforms like Brazil's Pix and decentralized finance (DeFi) solutions. Pix, which processed 56 billion transactions in 2024, has challenged global payment leaders with its instant, low-cost model, while DeFi platforms such as Pecunity are reshaping transaction dynamics in regions with supportive regulatory environments, according to a Bitget report. Despite these pressures, Visa's market capitalization of $618 billion and $26 billion in operating profits reflect its entrenched dominance, the Bitget article noted.

Cross-border payments and value-added services (VAS) emerged as key growth engines. VAS revenue surged 26% year-over-year in Q3 2025, fueled by AI-driven fraud prevention and real-time analytics, the Bitget report added. The company also announced a 14% increase in its quarterly dividend to $0.67 per share, signaling confidence in sustained profitability, according to a Finimize report. Analysts remain optimistic, with Barclays and Wells Fargo upgrading their ratings to "overweight" and "strong-buy," respectively, and a median 12-month price target of $400 per share, as noted in a MarketBeat filing.

Visa's foray into stablecoins aligns with broader industry shifts toward blockchain integration. The company now supports 16 billion Visa tokens, up from 10 billion in May 2024, and has expanded partnerships with institutions like Barclays and Southwest Airlines to enhance digital payment capabilities, the Seeking Alpha report noted. These efforts aim to counter threats from homegrown systems like Pix and position Visa as a leader in next-generation payment infrastructure.

Looking ahead, Visa projects low double-digit net revenue and EPS growth in 2026, with CFO Christopher Suh emphasizing cost discipline and innovation in AI-powered commerce, according to an Investing.com article. The company's stock rose 0.7% in after-hours trading following the earnings report, reflecting investor confidence in its ability to navigate regulatory and technological challenges.