Key Takeaways:
Pershing Square built a Visa stake Aug. 13 after the payments giant trailed the S&P 500 by 15 points over five years.
"Visa is the leading hyperscaler of payments globally," CEO Ryan McInerney said.
Visa processed 71.7 billion transactions in the June quarter, up 10% year over year, with cross-border volume up 12% on a constant-dollar basis. Revenue reached $11.63 billion, a 14.4% jump, and non-GAAP EPS came in at $3.32, up from $2.98 a year earlier. Operating margins were near 59%, and return on equity held at 67.68%.
Ackman unveiled six new holdings in his biggest portfolio overhaul in years, adding Visa, Mastercard, Alcon, Intercontinental Exchange and S&P Global. The additions come after a rough stretch for his funds: Pershing Square USA was down 3.5% for 2026 through July, and London-listed Pershing Square was down 9.2%, against a 10% gain for the S&P 500 total-return index.
Visa has lagged the index across every window. A $1,000 investment five years ago would be worth $1,609.10, versus $1,759.30 for the S&P 500. Over one year, $1,000 grew to $1,050, compared with $1,200.80 for the index; year to date, $1,029.30 versus $1,133.10.
The bull case rests on continued cross-border spend and pricing power. Management repurchased about 14.5 million shares at an average $331 last quarter, with $28.4 billion still authorized, and the board added a new $20 billion buyback program. Visa also pays a quarterly dividend of $0.67 a share, a yield of roughly 0.7%.
The bear case rests on interchange litigation, stablecoin rails and regulatory caps on swipe fees chipping at the moat. Visa's net margin eased to 48.4% from 51.8% a year earlier as operating expenses rose 19% on higher personnel costs, a trade-off management is accepting to fund growth initiatives.
The stock trades at 31x earnings, near the top of its 52-week range of $293.89 to $373.97, with a market value of $680.21 billion. Ackman's entry signals confidence in Visa's toll-booth model, but the multiple prices in durability. Investors will watch Visa's next earnings call for margin trends and any update on the $28.4 billion buyback authorization.
This article is for informational purposes only and does not constitute investment advice.
