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Visa Just Beat Earnings Expectations. Here's the Bigger Story Investors Should Watch

May 09, 2026 — 10:35 am EDT

Written by

Reuben Gregg Brewer for

The Motley Fool->

Key Points

- Visa reported strong fiscal second-quarter 2026 earnings, but the important number wasnt earningsper share.

- The company's transaction volume rose again, with management noting that consumer sentiment remains resilient.

- 10 stocks we like better than Visa ›

Visa's (NYSE: V) fiscal second-quarter 2026 adjusted earnings per share rose 20% year over year, while revenue grew 17%. That's a good quarter. But investors shouldn't focus solely on revenue and earnings when looking at Visa, since there are key metrics beneath those high-level numbers that offer deeper insight into the company's business and the broader economy.

Visa's growth story is about volume

Visa processes payments, helping to safely facilitate transactions between retailers and customers. It charges a small fee per transaction, but those small numbers add up because it processes a huge number of transactions. The company's growth has been driven by the ongoing shift from cash to card payments. The growth of e-commerce suggests there is plenty of room for further expansion, since cash isn't an option when customers buy online.

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Image source: Getty Images.

While earnings are important to examine, the really big number is volume. The number of transactions Visa handled in the fiscal second quarter rose 9% year over year. Management noted specifically that "consumer spending remained resilient." That is important because the geopolitical conflict in the Middle East has pushed energy prices higher and increased concerns about a global recession. So far, Visa isn't seeing that.

Visa's business is strong globally

Visa is a U.S. company, but it is a global business. Given the geopolitical tensions, it is also notable that the company's cross-border volume rose 12% year over year. The news may be filled with troubling headlines, but that isn't impacting Visa's ability to grow domestically and abroad.

Visa is doing very well as a business, but the stock is down more than 10% from its 52-week high. It fell as much as 20% during the first quarter before recovering. Management took the opportunity to buy back 25 million shares, a shareholder-friendly move that appears to have been well timed.

Also, Visa continues to innovate, with its stablecoin card offering customers easy access to cutting-edge financial services. With the ongoing growth and adoption of cryptocurrencies, this product lets customers enter a new financial space with the help of a trusted partner. It now has 160 stablecoin card programs worldwide, with payment volume up nearly 200% year over year. This could be an important growth engine for years to come.

Visa's strong quarter suggests that there's nothing to worry about for now

If there is a recession, the company's transaction volume would likely slow. Visa isn't seeing any signs of a recession on the horizon, though one will eventually come along. Right now, the company is hitting on all cylinders, and it appears to be positioning itself for growth regardless of whether or not a recession is on the way. Shareholders should be pleased.

If you don't own Visa, the stock's price-to-sales and price-to-earnings ratios are below their five-year averages. That suggests that it may still be attractively valued even though the shares have recovered some of the ground lost in the first quarter's 20% drawdown.

Should you buy stock in Visa right now?

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