Mastercard Incorporated
MA · NYSE
MA · NYSE
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Alphabet Inc. Depositary Shares representing a 1/20th Interest in a Share of Series A Mandatory Convertible Preferred Stock$51.11Expected to report Oct 29, 2026 — estimated from last year’s reporting date.
Consensus is $5.11 EPS for Sep 2026 across 13 estimates, ranging $4.96 to $5.18.
Mastercard’s second quarter was a broad-based growth and margin print that exceeded expectations. Adjusted diluted EPS of $5.04 was $0.27 above the $4.77 consensus, while GAAP diluted EPS was $4.97, up 22% from $4.07 a year ago. Net revenue rose 14% to $9.28 billion from $8.13 billion, and increased approximately 10% sequentially from $8.40 billion in Q1. GAAP operating income grew 17% to $5.59 billion, net income rose 19% to $4.39 billion, and the operating margin reached 60.2% versus 58.7% last year.
The defining feature was the mix of durable network growth and faster expansion in value-added services. Local-currency GDV rose 8% to $2.9 trillion, cross-border volume increased 12% and switched transactions grew 9%, while value-added services revenue advanced 20%. Expense growth remained below revenue growth on a GAAP basis, and the tax rate declined to 20.0% from 20.8%. Mastercard also accelerated capital deployment, repurchasing $4.9 billion of stock in the quarter, while funding its planned $1.5 billion BVNK acquisition through a broader balance-sheet program that included $5.0 billion of new notes issued in June.
Mastercard converted 14% reported revenue growth into faster operating and earnings growth. Net revenue was $9.28 billion, operating income was $5.59 billion and GAAP net income was $4.39 billion. Adjusted net income was $4.45 billion, with adjusted diluted EPS of $5.04 versus $4.15 in Q2 2025. The comparison also benefited modestly from lower litigation provisions of $82 million versus $96 million a year ago, while equity-investment results were essentially immaterial.
The underlying payments franchise remained healthy, although growth was stronger outside the United States. Mastercard-branded GDV increased 8% on a local-currency basis to $2.9 trillion, while purchase volume rose 10%. Cross-border volume grew 12%, supporting higher cross-border assessments and travel-related activity, and switched transactions increased 9%.
Mastercard is extending its payments infrastructure into digital assets. In March it agreed to acquire BVNK Holdings, a stablecoin infrastructure provider, for $1.5 billion excluding customary closing adjustments. Sellers may receive up to $300 million of contingent consideration tied to performance targets. The transaction remains subject to regulatory approval and is expected to close before the end of Q3 2026.
Mastercard returned substantial capital while adding debt to support corporate purposes and strategic flexibility. Second-quarter share repurchases totaled $4.9 billion for 9.8 million shares, and dividends were $771 million. Through July 27, the company had repurchased another $0.7 billion, leaving $7.8 billion of authorization.
Litigation remained a meaningful operating and cash-flow consideration, even though the second-quarter provision declined year over year. Mastercard recorded an $82 million litigation provision, including matters related to ATM surcharge complaints and U.S. merchant opt-out claims. The company had $149 million accrued for the U.S. merchant interchange litigation at June 30, down from $637 million at year-end after payments during 2026.