Visa Q1 Revenue Jumps 15% to $10.9B, Price Target Raised to $375
Freedom Capital raised its price target on Visa to $375 from $360 after Q1 revenue rose 15% YoY to $10.9 billion, beating estimates by 2%. Adjusted net income climbed 12% despite a 16% jump in operating expenses and a 100bp tax-rate increase.
1. Analyst Ratings and Price Targets
In mid-February, Freedom Capital upgraded the stock to Buy and raised its price target to $375 from $360 while Truist maintained a Buy rating with a $372 target after a slight trim.
2. Fiscal Q1 2026 Financial Results
Visa reported fiscal Q1 revenue of $10.9 billion, up 15% year-over-year and 2% above consensus, with adjusted net income rising 12% despite offsetting cost pressures.
3. Expense Growth and Tax Rate Increase
Operating expenses surged 16% year-over-year and the effective tax rate climbed by 100 basis points, constraining net income growth relative to top-line gains.
4. Share Repurchases and Potential Re-rating
The ongoing buyback program has bolstered per-share metrics, and analysts note that Visa’s valuation discount to Mastercard could narrow if growth remains strong.