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FinanceVisa to cut 2,600 jobs, stock rises on efficiency push
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Visa (V) announced plans to lay off approximately 7% of its global workforce, eliminating about 2,600 roles primarily in technology and product teams. The stock rose sharply on the news, up about 25% from its year-to-date low, as investors viewed the cuts as a move to improve operational efficiency. CEO Ryan McInerney stated the layoffs are designed to reduce operational drag, with Visa leveraging AI to automate routine coding and product development tasks. The freed-up capital will be reinvested in high-growth areas including cross-border transactions, commercial B2B payments, and stablecoin infrastructure. The announcement comes ahead of Visa's fiscal Q3 earnings release, with consensus estimates of $11.35 billion in revenue and $3.23 EPS. Options pricing suggests potential upside of over 3% through the end of the week. Wall Street maintains a 'Strong Buy' consensus rating with a mean price target of $404, implying nearly 9% upside over the next 12 months.
Source report
Author: Wajeeh Khan Source: Barchart
Visa (V) shares surged on Tuesday after the credit card giant announced plans to cut approximately 7% of its global workforce, eliminating about 2,600 roles. The layoffs will primarily affect technology and product-focused staff worldwide.
Following the announcement, Visa stock has risen roughly 25% from its year-to-date low.
Layoffs Viewed as Positive for Profitability
According to an internal memo from CEO Ryan McInerney, the layoffs aim to reduce operational drag. The market has responded favorably, viewing the move as supportive of the company's bottom line.
Visa is leveraging artificial intelligence (AI) to automate routine coding and product development tasks, freeing up capital for reinvestment in high-growth areas, including:
- Cross-border transactions
- Commercial B2B payment solutions
- Next-generation stablecoin payment infrastructure
Investors expect improved operating leverage to expand margins and support long-term profitability.
Visa Set to Report Fiscal Q3 Earnings
The layoff announcement comes as Visa prepares to release its fiscal third-quarter earnings after market close today.
Consensus estimates:
- Revenue: $11.35 billion
- Earnings per share (EPS): $3.23
- EPS growth: 8.39% year-over-year
Options pricing suggests Visa could rise further after the earnings release. Contracts expiring July 31 indicate an upper price target of roughly $380, implying over 3% upside potential through the end of the week.
However, Visa stock trades at a premium compared to rival Mastercard (MA), at nearly 16x sales versus Mastercard's 14.5x.
Analyst Consensus on Visa Stock
Wall Street analysts share options traders' optimism for Visa in the second half of 2026.
- Consensus rating: Strong Buy
- Mean price target: $404 (approximately 9% upside over the next 12 months)
Visa also offers a dividend yield of 0.73%.
On the date of publication, Wajeeh Khan did not hold positions in any of the securities mentioned in this article. This content is for informational purposes only.
Originally published on Barchart.com
Source
Yahoo FinanceWestern
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Visa Stock Rises on Layoff Announcement; 2,600 Jobs Cut Ahead of Earnings