Visa shares dip after earnings despite beating estimates

Visa shares fell earlier in the session even though the company beat earnings and revenue expectations; the firm reiterated 2026 guidance while flagging a moderation in near-term growth.

Visa shares moved lower earlier in the session even though the company beat earnings and revenue expectations. The firm reiterated its 2026 guidance, while its fiscal second-quarter outlook implied a moderation in near-term growth versus a strong prior-year comparison. Results showed resilient consumer spending and strong growth in value-added services alongside softer margins and higher operating expenses tied to marketing. The quarter arrived amid heightened political attention to credit card fees and new consumer savings initiatives. Key facts: - Visa beat earnings and revenue expectations; value-added services revenue rose about 28% in the fiscal first quarter. - Adjusted operating expenses grew about 14%, above company guidance, with marketing for the Olympics and the World Cup cited as a driver; earnings per share beat consensus by roughly three cents. - The company reiterated full-year 2026 guidance and guided to low double-digit organic constant-currency growth for the fiscal second quarter, implying a modest step-down versus the prior-year period. - International transaction revenue growth was weaker than some expected, as lower-than-anticipated FX volatility reduced a higher-yielding revenue stream. - The article mentions regulatory headlines, including the Credit Card Competition Act and a proposed 10% interest-rate cap, and notes Visa’s plan to let cardholders direct cash-back rewards into so-called Trump savings accounts; it also quotes Deutsche Bank analyst Nate Svensson and mentions his buy rating and US$410 price target. Summary: Visa’s quarter combined a top-line beat and resilient consumer spending with margin pressures and guidance that signaled moderated near-term growth, which helped explain the earlier dip in the share price. Political and regulatory headlines added attention but were described in the article as headline risks rather than immediate changes to the business model. Market focus is likely to remain on upcoming quarters as year-over-year comparisons ease later in the year.