Visa's Market Cap Reaches $685B, Ranks #14 Among US Publicly Traded Companies

Visa Inc. is a leading global payments network with a market capitalization of $685B, ranking #14 among U.S. publicly traded companies. The company aims to connect consumers with merchants, providing financial services and facilitating transactions. Visa's success is attributed to its ability to let its winners run, implying the company's focus on growth and innovation.

Visa Inc. (NYSE: V), a leading global payments network, reported its third-quarter fiscal 2025 earnings, which exceeded market expectations. The company, with a market capitalization of $685 billion, ranked 14th among U.S. publicly traded companies as of July 2, 2025 [1].

Financial Highlights

Visa reported net revenues of $10.2 billion, a 14% year-over-year (YoY) increase, surpassing the consensus estimate of $9.85 billion [1]. The non-GAAP earnings per share (EPS) stood at $2.98, up 23% YoY, beating the estimate of $2.85 [1]. The company's value-added services grew 26% YoY, indicating robust growth in this segment [1].

The company's processed transactions rose 10% YoY to 65.4 billion, while cross-border volumes increased 12% YoY. Payments volume grew 8% YoY, with debit cards outpacing credit cards [1].

Operating expenses outgrew revenues by 21%, primarily due to a litigation provision, leading to a lower operating and net income margin. However, excluding this provision, operating expenses grew by 14.6% YoY, raising questions about the company's ability to maintain operating leverage [1].

Cash Flow and Shareholder Returns

Visa generated $6.7 billion in operating cash flow, up 31% YoY, resulting in $6.3 billion in free cash flow, a 33% YoY increase. The company returned almost all its FCF to shareholders by paying out $1.15 billion in dividends and repurchasing $4.83 billion of shares [1].

Valuation and Outlook

Visa's forward P/E ratio stands at 34, which is elevated relative to its peers and the broader market. Compared to Mastercard Incorporated (MA) and American Express Company (AXP), Visa trades at a slight premium of 7.7% [1].

The company expects low double-digit revenue growth (10-14%) and low-teens EPS growth (13-15%) for the full year 2025. However, the stock's valuation suggests that much of this growth is already priced in, making the implied future returns relatively low [1].

Risks and Conclusion

Visa's premium valuation demands continued growth and reliability. Any slowdown, regulatory setback, or disruption could trigger a sharp re-rating and unwind years of shareholder gains. The rise of stablecoins introduces uncertainty, as these innovations could erode Visa's moat over time [1].

Existing investors should hold onto their shares, as single-digit growth rates can still result in significant returns due to compounding. New investors, however, are advised to wait for a slight dip, as current valuations are relatively high and may not offer attractive returns [1].

References

[1] https://seekingalpha.com/article/4806237-visa-is-a-prime-example-of-letting-your-winners-run
[2] https://www.nasdaq.com/articles/visa-q3-earnings-beat-estimates-strong-cross-border-volumes