Visa (V) reported strong fiscal Q3 results as revenue rose 14% year-over-year in constant currency, driven by continued momentum in value-added services, favorable pricing actions, and slower growth in incentives, UBS Securities said.

Visa now expects full-year 2025 net revenue and earnings per share to come in stronger than previously forecasted, citing strong year-to-date performance and a solid fiscal Q4 outlook, according to the note Tuesday.

UBS raised its fiscal Q4 earnings per share estimate to $2.97 from $2.93, and its fiscal 2025 forecast to $11.45 from $11.30, while slightly trimming its fiscal 2026 projection to $12.91 from $12.92. That compares with FactSet consensus estimates of $2.98 for Q4, $11.41 for 2025, and $12.83 for 2026.

Visa saw broad-based strength across services, data processing, and international transaction revenue. The value-added services segment grew about 26%, aided by the recent Featurespace acquisition, while Visa Direct transactions rose 25% year-over-year.

UBS highlighted several price increases Visa implemented during the quarter, including higher US network fees for Visa Direct and Secure Credential charges in Europe. These changes are expected to support revenue growth into the first half of fiscal 2026.

The firm has a buy rating on the stock and raised its price target to $415 from $405.

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