How AI is Fueling Visa's Financial Engine

Visa surpasses Q1 revenue and profit forecasts, with AI-powered services surging 28%. Despite strong fundamentals, the stock trades near 52-week lows.

Visa Inc. has kicked off its 2026 fiscal year on a strong note, surpassing market expectations for both revenue and profit. The payments giant is making significant strides in its strategic pivot toward artificial intelligence and value-added services. However, despite this operational strength, the company's shares remain under close scrutiny following a challenging trading period, as its successes meet a difficult market environment.

Quarterly Performance Exceeds Forecasts

For the first quarter, which concluded in December 2025, Visa reported revenue of $10.90 billion. This figure came in above the analyst consensus estimate of $10.69 billion. The company also delivered earnings per share of $3.17, beating projections of $3.14.

Even with this robust operational performance, the stock, currently priced at €265.15, is trading just above its recently established 52-week low of €260. The fundamental health of the financial behemoth, however, remains solid, evidenced by a net margin of 50.23% and a return on equity of 54.5%.

AI Services Become a Core Revenue Pillar

The deployment of artificial intelligence is emerging as a central competitive edge for Visa. The technology is proving particularly potent in fraud prevention. The company's AI-powered "Decision Manager" system reviewed billions of transactions last year alone, reportedly preventing potential losses running into the tens of billions of dollars. A key question for investors is whether this technological advancement can sustainably counteract the share price pressure seen in recent months.

This expertise is already having a direct impact on the financial statements. Revenue from Value-Added Services surged 28% in Q1 to $3.2 billion. Concurrently, Visa Direct, a service for real-time payments, recorded a 23% increase in transaction volume, highlighting the company's growth in newer payment segments.

Shifts in Shareholder Composition

Alongside the business results, changes in ownership structure and insider positions have been noted. In early January, CEO Ryan McInerney sold approximately 10,500 shares at an average price of nearly $349 as part of a pre-established trading plan. There was also movement among major investors, with institutional holder Brighton Jones LLC completely exiting its position.

Operationally, Visa demonstrates no signs of weakness, yet it contends with a notable valuation discount compared to the previous year. The coming months will reveal if the momentum in AI services is sufficient to recover the share price losses of over 20% on a twelve-month view. The confirmation of a quarterly dividend of $0.67 per share, at the very least, signals a continued solid cash flow foundation.