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V · Forward model · Service revenue · Suh Low-Teens case

What has to happen in Service revenue

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This page changes Service revenue inside the complete V model. Every other vertical, corporate programme and valuation assumption stays in the selected portfolio case.

V forward model
Horizon
Consolidated fair value $358.69 all other verticals held in this portfolio case
Final-quarter revenue $8.41B 41% of company revenue
Explicit segment contribution $65.89B EBITDA less segment capex, before corporate items

Suh raised fiscal 2026 on 28 July 2026 to the low end of low-teens adjusted net revenue growth, with fiscal Q4 at the high end of low-double-digits. Translated through the roughly 2.5-point FX-and-acquisition wedge that printed in the June quarter, that is a nominal fiscal Q4 of about $12.07-12.23B and a fiscal 2026 of about $45.8-46.0B. This case pays for the TOP of that band and for nothing else: fiscal Q4 2026 prints $12,229M and fiscal 2026 $45,993M. The delta compounds, so it is not only a claim about one quarter - by the trailing twelve months to fiscal 2031 Q3 the revenue line stands 12.7% above base, which is what it costs to assume Visa keeps delivering at the top of its own guided pace for five years. It does not assume the FIFA marketing-services revenue repeats, and even at the top of the band the fair value of $358.69 is 6.6% below the price.

Service revenue

Basis quarter$4.92B
Final quarter$8.41B
Implied CAGR+11%
Final revenue mix41%

Assessments earned for providing the Visa brand, products and network to clients, recognised on the PRIOR quarter's payments volume. The lag is disclosed in every release and is why fiscal Q3 (Apr-Jun) is the softest quarter: it is billed on the January-March spend trough.

Last four quarters
2025 Q4 $4.60B Estimated
2026 Q1 $4.76B Reported
2026 Q2 $4.98B Reported
2026 Q3 $4.92B Reported
Client assessments on payments volume, recognised one quarter in arrears
Sequential growth +2.2%/qtr decaying toward +2.0% +2.2% deseasonalised. With the four other lines it prints the guide-consistent fiscal Q4 of $12,150M, +13.3% YoY.
Service revenue

Latest: $8.41B (2031Q3E)

Period Value
2022Q1 $3.19B
2022Q2 $3.52B
2022Q3 $3.19B
2022Q4 $3.46B
2023Q1 $3.51B
2023Q2 $3.77B
2023Q3 $3.67B
2023Q4 $3.88B
2024Q1 $3.92B
2024Q2 $4.03B
2024Q3 $3.97B
2024Q4 $4.20B
2025Q1 $4.21B
2025Q2 $4.40B
2025Q3 $4.33B
2025Q4 $4.60B
2026Q1 $4.76B
2026Q2 $4.98B
2026Q3 $4.92B
2026Q4E $5.27B
2027Q1E $5.37B
2027Q2E $5.64B
2027Q3E $5.50B
2027Q4E $5.88B
2028Q1E $5.99B
2028Q2E $6.29B
2028Q3E $6.12B
2028Q4E $6.54B
2029Q1E $6.66B
2029Q2E $6.99B
2029Q3E $6.81B
2029Q4E $7.28B
2030Q1E $7.40B
2030Q2E $7.77B
2030Q3E $7.57B
2030Q4E $8.08B
2031Q1E $8.23B
2031Q2E $8.63B
2031Q3E $8.41B

Assumptions & reasoning

  • Recognised on the PRIOR quarter's payments volume, which is why fiscal Q3 (April-June) is the softest quarter of Visa's year: it is billed on the January-March spend trough. Seasonality [1.000, 1.022, 0.969, 1.009] is indexed on the FISCAL label, so index 1 is the October-December quarter.
  • The seasonal signal here is moderate, not strong: 5.3% amplitude against a worst-quarter window spread of 3.3%, a ratio of 1.60. It is carried because the signs are unanimous across every window and because the recognition lag that produces them is disclosed in every release, not because the ratio clears a statistical bar.
  • No unit driver exists. Visa discloses payments volume only as a growth rate in its filings; the absolute figure appears on calls (`crossed $4 trillion` in the June quarter) and never in a table. Building a unit driver would mean inventing the volume series, so growth on the disclosed net line is used instead.
  • Deseasonalised sequential trend is +2.74% a quarter over the last eight steps and +3.26% over the last four. The +2.2% first projected quarter sits below both, because the guide-consistent fiscal Q4 is slower than the recent run rate.
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