Visa Q3 Earnings Preview: Consumer Spending In Focus, Wall Street Eyes Stablecoin Commentary

Visa (V) stock has gained 2.4% over the past week ahead of its quarterly earnings report on Tuesday, after the closing bell.

According to Fiscal.ai data, Wall Street expects the payment processing firm to post earnings of $2.84 per share on revenue of $9.85 billion for the fiscal third quarter. The company has topped earnings estimates in three of the previous four quarters.

Investors will be keenly watching the company’s earnings and its commentary on consumer spending trends, as well as developments in the cryptocurrency sector.

Last month, investors were spooked after a landmark stablecoin legislation advanced in Congress. Digital tokens, typically linked one-to-one with the dollar, enable consumers to pay merchants directly from their cryptocurrency wallets. This method bypasses traditional banking and card networks, raising concerns about Visa and its peers.

However, analysts have noted that the fears are overblown. Mizuho analysts said that the networks are mostly exposed to global consumer credit, which is "incredibly sticky," and regulated U.S. debit, which is "already at barebones pricing."

Retail sentiment on Stocktwits about Visa was in the ‘neutral’ territory at the time of writing.

The company’s earnings could also indicate how Trump's tariffs are affecting consumer sentiment globally. Recent trade deals between the U.S. and some of its biggest trading partners would likely have a positive impact on spending,

Last week, the company’s rival American Express reported a 9.3% increase in quarterly revenue, excluding interest expense, to $17.9 billion. This growth was attributed to higher card spending, increased net interest income from larger revolving loan balances, and a rise in card fees.

Another rival, Mastercard, is scheduled to post its earnings on Thursday.

Visa stock has gained 12.4% this year.

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