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Visa (V) reported an exceptional fiscal Q2, delivering what management described as the strongest net revenue growth since 2022, and outside of the post-pandemic recovery and the Visa Europe acquisition, the strongest since 2013. The company raised its full-year net revenue and EPS guidance, announced a new $20 blon share repurchase authorization, and unveiled a significant expansion of its blockchain settlement infrastructure, all of which sent the stock sharply higher.

• Q2 net revenue rose 17% y/y to $11.2 bln and adjusted EPS increased 20% to $3.31, beating consensus, driven by better-than-expected FX trends (still a drag), stronger value-added services, and lower-than-guided client incentives growth of 14% due to timing and performance adjustments.
• Global payments volume grew 9% y/y in constant dollars to $3.7 trln, with processed transactions also up 9% to 66 bln, as U.S. volume rose 8% (accelerating 1.5 pts from Q1) with broad-based credit (+10%) and debit (+7%) strength and no signs of lower-spend consumer weakness, while high-spend and ecommerce segments led growth.
• The Middle East conflict pressured the CEMEA region (6% of volume), causing a 2.5-point slowdown from Q1, but this was largely offset by stronger U.S. inbound volumes and record commercial cross-border activity, which reached the highest share of total cross-border volume in Visa’s history.
• Value-added services revenue increased 27% in constant dollars to $3.3 bln (30% of total revenue, growing 25%+), led by AI-driven fraud and risk tools (Visa Advanced Authorization, Visa Risk Manager, Visa Consumer Authentication Service), Olympic/FIFA-linked marketing services, and Pismo’s expansion into 15 new countries and new client win with Wells Fargo.
• Visa added five blockchains (Arc, Base, Canton, Polygon, Tempo) for stablecoin settlement, bringing the total to nine, with settlement volume reaching a $7 bln annual run rate (+50% q/q), while also becoming a validator on Tempo and super-validator on Canton, and growing stablecoin-linked card programs to 160+ globally with payment volume up 200% y/y.
• The board authorized a new $20 bln multi-year share repurchase program, adding to $13 bln remaining under the prior plan for total buyback capacity of $33 bln.
• Visa raised full-year guidance, now expecting low-double-digit to low-teens net revenue growth and low-teens adjusted EPS growth, based on stable consumer spending, Middle East headwinds offset by FIFA-driven travel, continued cross-border ecommerce strength, and no material pricing changes.

Briefing.com Analyst Insight:

Visa's Q2 results reflect genuine execution across all three growth engines simultaneously - a rare occurrence in recent history. The VAS segment has matured into a durable, high-margin growth driver, now representing 30% of revenue. The stablecoin disclosures are strategically underappreciated: Visa is not merely participating in crypto infrastructure but becoming a governing node on regulated blockchains while extracting card-equivalent economics from stablecoin card programs growing at triple-digit rates. The $33 billion in total buyback capacity underscores management's confidence in the earnings trajectory. With FIFA tailwinds ahead, back-half pricing kicking in, and agentic commerce emerging as a credible volume catalyst, the setup for the remainder of FY26 looks highly constructive. The longer-term compounding story remains in its early innings.