Is V a good stock to buy? We came across a bullish thesis on Visa Inc. on LongYield’s Substack. In this article, we will summarize the bulls’ thesis on V. Visa Inc.’s share was trading at $327.24 as of June 18th. V’s trailing and forward P/E were 28.53 and 21.83 respectively according to Yahoo Finance.
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Visa Inc. operates as a payment technology company in the United States and internationally. V continues to demonstrate why it remains one of the highest-quality businesses in global payments, delivering another exceptionally strong quarter driven by its dominant position as the infrastructure layer of digital commerce. The company generated $11.2 billion in revenue during Q2 FY2026, up 17% year-over-year, while non-GAAP EPS of $3.31 exceeded expectations and increased 20% from the prior year.
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Visa’s business model benefits from powerful network effects, as every card swipe, tap, online purchase, or tokenized transaction flowing through its network generates fees with minimal incremental cost, supporting operating margins above 65% and capital expenditure requirements of only about 2% of revenue. The quarter highlighted the strength of this model, with approximately $9.2 billion returned to shareholders through dividends and share repurchases, alongside a newly authorized $20 billion buyback program.
Growth was broad-based across the business, with service revenues benefiting from higher payment volumes, data processing revenues supported by rising transaction counts, and international transaction revenues growing the fastest as cross-border activity remained robust. Total payments volume reached approximately $3.95 trillion, increasing 9% year-over-year, while international markets continued to outpace domestic growth due to ongoing cash-to-card conversion and expanding digital payment adoption.
Cross-border volume, one of Visa’s most profitable revenue streams, increased 12%, supported by resilient global travel demand and structurally growing international e-commerce activity. Beyond its core network, the company is increasingly monetizing value-added services, creating an additional layer of growth that could command a premium valuation if disclosed separately.
While investors should monitor regulatory scrutiny and emerging payment technologies such as stablecoins, Visa’s unmatched scale, strong free cash flow generation, and expanding global payments ecosystem position it for continued earnings growth and long-term shareholder value creation.
Previously, we covered a bullish thesis on Visa Inc. (V) by Margin of Sanity in May 2025, which highlighted the company’s dominant payments network, duopoly market structure, powerful network effects, and capital-light business model. V’s stock price has depreciated by approximately 10.37% since our coverage. LongYield shares a similar view but emphasizes Visa’s strong quarterly execution, growing cross-border volumes, expanding value-added services, and significant shareholder returns as catalysts for future growth.
Visa Inc. is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 181 hedge fund portfolios held V at the end of the first quarter which was 184 in the previous quarter. While we acknowledge the risk and potential of V as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than V and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
