Visa announced a buyback update, revealing it repurchased 13 million shares, marking a 0.66% decrease in outstanding shares since early 2025 and launching a new $30 billion buyback program on April 29. Concurrently, Visa reported its second-quarter earnings with sales rising to $9,594 million, though net income saw a slight dip. Despite these solid developments, Visa's share price rose by 3.05% over the last week, paralleling a broader market positive trend of 5.2%. In contrast, major indices like the Dow Jones slid mid-week after a weak GDP report.

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Visa's recent share repurchase and new buyback program could bolster its stock by reducing share count, potentially enhancing Earnings Per Share (EPS) metrics. The alignment of these actions with Visa's second-quarter sales growth suggests the company is fortifying its market position through strategic financial maneuvers. Despite a minor dip in net income, the company's focus on expanding tap-to-pay technology and partnerships aims to stimulate transaction volumes and bolster future revenues. Analysts, who predict annual revenue growth of 10.3% over the next three years, may recalibrate forecasts considering its robust buyback strategy and market expansion endeavors.

Over the past five years, Visa's total shareholder return, including dividends, was 98.32%, highlighting a strong growth trend over the longer term. This performance is further underscored by its one-year return that tops the US Diversified Financial industry’s 23.6% and the broader US Market's 9.9% return. These figures place Visa as a strong performer relative to industry and market benchmarks, despite short-term volatility in broader indices.

With a fair value consensus analyst price target of US$374.36, Visa's current share price of US$331.40 remains at a discount, indicating growth potential according to market analysts. As Visa's share price rose 3.05% last week against this backdrop, it suggests market confidence in Visa's strategies, despite broader economic uncertainties. The implementation of its buyback plan could be a pivotal driver for stock performance, potentially aligning Visa's market value more closely with analyst expectations as these operational factors support earnings growth.

Gain insights into Visa's past trends and performance with our report on the company's historical track record.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:V.

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