V · Q2 FY2026
VISA INC. Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $11.23B | $9.59B yr ago | Beat |
| EPS | Not disclosed | Not disclosed yr ago | Miss |
| Free Cash Flow | $3.01B; not meaningful for this financial company | $4.70B yr ago | Miss |
| Gross Margin | Not meaningful for this financial company | Not meaningful yr ago | Miss |
| Operating Margin | 64.4% pre-tax margin | 56.6% yr ago | Beat |
What changed
Revenue increased 17.1% year over year to $11.23 billion, while pre-tax margin expanded 7.8 percentage points to 64.4%. The implied quarterly pre-tax result increased to approximately $7.23 billion from $5.43 billion, materially faster than revenue. Net debt rose to $10.01 billion from $5.08 billion a year earlier, tempering the operating improvement.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise, so this update establishes a provisional $389.24 base-case value rather than claiming a change. The quarter supports a modest premium to the current price because revenue accelerated and pre-tax margin recovered, but incomplete per-share data and higher net debt limit conviction.