Visa (NYSE:V) is one of those quiet winners that rarely grab news headlines. But this proven compounder has been a winner yet again in 2026. Shares are up approximately 20% since January and sit near all-time highs.
I predict that Visa stock still has room to run, with shares touching $500 by the end of 2028. That’s roughly 18% above today’s share price, making Visa a steady compounder worth owning if you don’t already.
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Here’s what you need to know.
Chugging along nicely
The global payments processing giant closed out its fiscal year 2026 at the end of September. Total net revenue grew by 15% for the full year, while adjusted earnings per share rose by 16% to $13.27.
Image source: The Motley Fool.
Cross-border transactions are still driving growth. Whereas total payments volume grew by 9% in 2026, cross-border volume grew by 13%.
Visa has long been a cash cow because its revenue is growing faster than it needs to invest in its mature payments network. The company generated just over $22 billion in free cash flow this fiscal year and spent approximately $25.6 billion on share repurchases and dividends.
This is nothing new. Visa has reduced its share count by an impressive 20% over the past decade, which has helped drive higher earnings per share and higher share prices. Management has also raised the dividend consistently each year.
Breaking down the journey to $500
Visa continues to grow as more people pay with Visa-branded debit and credit cards, or digital wallets. The company also offers an increasingly broad portfolio of services that complement its payments processing network.
Wall Street analysts currently estimate that Visa will earn $15.03 in fiscal year 2027 and $17.14 in fiscal year 2028. That translates to 13% to 14% earnings growth in each of the next two years.
It’s also a slowdown from fiscal year 2026’s 16% earnings growth, so it seems reasonable, even if the economy cools off some.
Visa currently trades at just under 32 times earnings. I wouldn’t say that shares are a bargain, but it’s a justifiable valuation for a business growing earnings at a mid-teens growth rate.
From here, Visa doesn’t need to do anything spectacular to nail my prediction. If it only meets analyst estimates and maintains its current stock valuation, shares will trade at around $540 by the end of 2028.
