Visa's Q1: A Positive Teaser Ahead of Investor Day

Visa Inc. (NYSE: V) reported its fiscal first quarter 2025 earnings on January 30, 2025, beating analyst estimates for both earnings per share (EPS) and revenue. The strong performance, driven by robust holiday spending and a 16% rise in cross-border volumes, has analysts optimistic about the company's future prospects. As Visa prepares for its February 20th Investor Day, investors are eager to see how the company will build on this momentum.

Visa reported EPS of $2.75, surpassing the analyst consensus estimate of $2.66 by 3.0%. Revenue came in at $9.51 billion, beating the consensus estimate of $9.34 billion and marking a 10% increase year-over-year. The company's net revenue growth was driven by the year-over-year growth in payments volume, cross-border volume, and processed transactions.



Analysts weigh in on Visa's Q1 performance and future prospects:

1. BofA Securities analyst Jason Kupferberg reiterated a Neutral rating on Visa stock, raising the price target to $363 from $331. Kupferberg noted that the company's EPS growth guidance is driven by the first quarter upside and an updated 2025 tax rate assumption. However, he maintained a Neutral rating due to concerns over top-line growth and potential litigation/regulatory risks.
2. RBC Capital Markets analyst Daniel R. Perlin reiterated an Outperform rating on Visa stock, raising the price target to $395 from $322. Perlin attributed the strong quarter to solid holiday spending, elevated FX volatility, and strong cross-border travel. He expects the positive backdrop to continue as Visa heads into its February 20th Investor Day.
3. Goldman Sachs analyst Will Nance maintained a Buy rating on Visa, raising the price target to $384 from $346. Nance projects Visa's strong first quarter results to support the stock, citing accelerated volumes, raised guidance, and an upbeat consumer outlook. Despite the strong performance, he anticipates a tempered share price reaction and expects the focus to be on Visa's value-added services (VAS) strategy and the upcoming Investor Day.
4. Oppenheimer analyst Rayna Kumar reiterated an Outperform rating on Visa, raising the price target to $390 from $375. Kumar believes Visa is well-positioned to capture market share from the ongoing shift from paper-based payments to cards, driving high-single-digit volume growth over the next three years. She highlights Visa as a "top 2025" idea.
5. Keefe, Bruyette & Woods analyst Sanjay Sakhrani reiterated an Outperform rating on Visa stock, with a price forecast of $400 from $360. Sakhrani notes Visa's strong quarter with ongoing volume acceleration, especially in discretionary spend categories. He cautions that FX headwinds may limit upside but expects potential upside as the year progresses, with improved constant currency outlook beyond the second quarter not fully reflected in guidance.

Visa's strong Q1 performance has analysts raising their price targets and maintaining positive ratings on the stock. Despite concerns over FX headwinds and regulatory risks, analysts remain confident in Visa's long-term prospects. The company's strategic focus on consumer payments, new flows, and value-added services, coupled with its robust holiday spending and cross-border volume growth, positions Visa for future growth.

As Visa prepares for its February 20th Investor Day, investors will be looking for the company to build on its strong Q1 performance and provide guidance on how it plans to capitalize on its growth levers. With analysts' positive outlook and price target increases, Visa's Q1 earnings report serves as a positive teaser for the upcoming Investor Day.