Mastercard Incorporated Reports Second Quarter 2026 Financial Results
MA: Mastercard Incorporated Reports Second Quarter 2026 Financial Results
EPS beat consensus by 0.27
Consensus comparison uses earnings_calendar estimates vs reported actuals.
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EX-99.1 2 ma06302026-exx991xearnings.htm EX-99.1
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Mastercard Incorporated Reports Second Quarter 2026 Financial Results
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• Second qu arter net inc ome of $4.4 billion, and diluted earnings per share (EPS) of $4.97 • Second quarter adjusted net income of $4.5 billion, and adjusted diluted EPS of $5.04 • Second quarter net reven ue of $9.3 billion, an increase of 14%, or 12% on a currency-neutral basis • Second quarter gross dollar volume up 8% and purchase volume up 10%, on a local currency basis Purchase, NY - July 30, 2026 - Mastercard Incorporated (NYSE: MA) today announced financial results for the second quarter 2026.
#4Michael Miebach · Mastercard CEO
We delivered above expectations with net revenue growth at 14% year-over-year, or 12% on a currency-neutral basis in the second quarter. These results reflect our role in powering more ways to shop, pay and do business. From new partnerships in Mexico and the UAE to our market-first Agentic Payment capability, we’re unlocking opportunities unique to Mastercard and shaping what’s next in commerce.
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Second Quarter Special Items
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| | | | | | | | | | | | | | | | | | | | | | | | Q2 2026 Key Business Drivers (YoY growth) |
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| Gross dollar volume | | | Cross-border volume | | | Switched transactions | (local currency basis) | | (local currency basis) | | up 8% | | up 12% | | up 9% |
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The following information is provided to aid in understanding Mastercard’s second quarter 2026 results, versus the year ago period. • Net revenue increased 14%, or 12% on a currency-neutral basis versus the comparable period in 2025. The increase was attributable to growth in our payment network and value-added services and solutions. ▪ Payment network net revenue increased 10%, or 8% on a currency-neutral basis. Primary drivers of the increase were as follows: • Gross dollar volume growth of 8% on a local currency basis to $2.9 trillion. • Cross-border volume gro wth of 12% on a local currency basis. • Switched transactions growth of 9%. This increase in payment network net revenue includes growth in payment network rebates and incentives provided to customers. Payment network rebates and incentives increased 22%, or 20% on a currency-neutral basis, primarily due to an increase in our key drivers, as well as new and renewed deals. ▪ Value-added services and solutions net revenue increased 20%, or 18% on a currency-neutral basis. The growth was driven primarily by our underlying key drivers, security solutions, consumer acquisition and engagement services, digital and authe…
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Year-to-date Special Items
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| Gross dollar volume | | | Cross-border volume | | | Switched transactions | (local currency basis) | | (local currency basis) | | up 8% | | up 12% | | up 9% | |
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The following information is provided to aid in understanding Mastercard’s year-to-date 2026 results, versus the year ago period. • Net revenue increased 15%, or 12% on a currency-neutral basis. The increase was attributable to growth in our payment network and our value-added services and solutions. ▪ Payment network net revenue increased 11%, as reported and 8% on a currency-neutral basis. Primary drivers of the increase were as follows: • Gross dollar volume growth of 8% on a local currency basis to $5.6 trillion. • Cross-border volume growth of 12% on a local currency basis. • Switched transactions growth of 9%. This increase in payment network net revenue includes growth in payment network rebates and incentives provided to customers. Payment network rebates and incentives increased 22%, or 19% on a currency-neutral basis, primarily due to an increase in our key drivers, as well as new and renewed deals. | | | | | | | | |
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▪ Value-added services and solutions net revenue increased 21%, or 18% on a currency-neutral basis. The increase was driven primarily by growth in our underlying drivers, security and digital and authentication solutions, consumer acquisition and engagement services, business and market insights and pricing. This includes a minimal decrease from acquisitions and dispositions. • Total operating expenses increased 11% as compared to 2025, primarily due to higher general and administrative expenses which included a restructuring charge in the first quarter of 2026, partially offset by lower litigation provisions. Excluding the impact of Year-to-date Special Items, adjusted operating expenses increased 11%, or 9% on a currency-neutral basis. This includes a minimal benefit from acquisitions and dispositions. The remaining increase was primarily due to higher general and administrative expenses. • Other income (expense) was favorable $27 million versus the year ago period, primarily due to government grant agreements executed in the fourth quarter 2025, partially offset by higher net losses in the current year versus the prior year on our equity investments. Excluding the impact of n…
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industry conditions or other circumstances arising and/or existing since the preparation of this press release or to reflect the occurrence of any unanticipated events. Many factors and uncertainties relating to our operations and business environment, all of which are difficult to predict and many of which are outside of our control, influence whether any forward-looking statements can or will be achieved. Any one of those factors could cause our actual results to differ materially from those expressed or implied in writing in any forward-looking statements made by Mastercard or on its behalf, including, but not limited to, the following factors: • regulation related to the payments industry (including regulatory, legislative and litigation activity with respect to interchange rates and surcharging) • the impact of preferential or protective government actions • regulation of privacy, data, AI, information security and the digital economy • regulation that directly or indirectly applies to us based on our participation in the global payments industry (including anti-money laundering, countering the financing of terrorism, economic sanctions and anti-corruption, account-based…
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About Mastercard (NYSE: MA) Mastercard powers economies and empowers people in more than 220 countries and territories worldwide. Together with our customers, we are building a resilient economy where everyone can prosper. We support a wide range of digital payments choices, making transactions secure, simple, smart and accessible. Our technology and innovation, partnerships and networks combine to deliver a unique set of products and services that help people, businesses and governments realize their greatest potential. www.mastercard.com
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Contacts: | | | | | | Investor Relations: | Media Relations: | Devin Corr | Seth Eisen | investor.relations@mastercard.com | Seth.Eisen@mastercard.com | 914-249-4565 | 914-249-3153 |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | Consolidated Statements of Operations (Unaudited) | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | (in millions, except per share data) | Net Revenue | | $ | 9,277 | | | $ | 8,133 | | | $ | 17,675 | | | $ | 15,383 | | Operating Expenses: | | | | | | | | | General and administrative | | 3,082 | | | 2,766 | | | 6,121 | | | 5,289 | | Advertising and marketing | | 217 | | | 213 | | | 370 | | | 365 | | Depreciation and amortization | | 309 | | | 281 | | | 608 | | | 556 | | Provision for litigation | | 82 | | | 96 | | | 82 | | | 247 | | Total operating expenses | | 3,690 | | | 3,356 | | | 7,181 | | | 6,457 | | Operating income | | 5,587 | | | 4,777 | | | 10,494 | | | 8,926 | | Other Income (Expense): | | | | | | | | | Investment income | | 88 | | | 70 | | | 169 | | | 158 | | Gains (losses) on equity investments, net | | (2) | | | 4 | | | (68) | | | (25) | | Interest expense | | (218) | | | (195) | | | (403) | | | (377) | | Other income (expense), net | | 31 | | | 16 | | | 106 | | | 21 | | Total other income (expense) | | (101) | | | (105) | | | (196…
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| | | | | | | | | | | | | | | Consolidated Balance Sheets (Unaudited) | | | | | | | June 30, 2026 | | December 31, 2025 | | | (in millions, except per share data) | | | | | | Assets | | | | | Current assets: | | | | | Cash and cash equivalents | | $ | 11,291 | | | $ | 10,566 | | Restricted cash and restricted cash equivalents | | 488 | | | 561 | | Restricted security deposits held for customers | | 2,196 | | | 2,121 | | Investments | | 318 | | | 332 | | Accounts receivable | | 5,047 | | | 4,609 | | Settlement assets | | 2,371 | | | 1,626 | | Prepaid expenses and other current assets | | 4,811 | | | 3,743 | | Total current assets | | 26,522 | | | 23,558 | | Property, equipment and right-of-use assets, net of accumulated depreciation and amortization of $2,878 and $2,756, respectively | | 2,541 | | | 2,303 | | Deferred income taxes | | 1,441 | | | 1,567 | | Goodwill | | 9,498 | | | 9,560 | | Other intangible assets, net of accumulated amortization of $3,303 and $3,096, respectively | | 5,466 | | | 5,554 | | Other assets | | 12,223 | | | 11,615 | | Total Assets | | $ | 57,691 | | | $ | 54,157 | | | | | | | Liabilities and Equity | | | | | Current liabilities…
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| | | | | | | | | | | | | | | | | | | Consolidated Statements of Cash Flows (Unaudited) | | | | | | | | | Six Months Ended June 30, | | | 2026 | | 2025 | | | | | (in millions) | Operating Activities | | | | | | | Net income | | $ | 8,270 | | | $ | 6,981 | | | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | Amortization of customer incentives | | 1,310 | | | 993 | | | | Depreciation and amortization | | 608 | | | 556 | | | | (Gains) losses on equity investments, net | | 68 | | | 25 | | | | Share-based compensation | | 326 | | | 308 | | | | Deferred income taxes | | 110 | | | 81 | | | | Other | | 84 | | | 60 | | | | Changes in operating assets and liabilities: | | | | | | | Accounts receivable | | (448) | | | (217) | | | | | | | | | | | Settlement assets | | (745) | | | (590) | | | | Prepaid expenses | | (3,835) | | | (2,238) | | | | Accrued litigation and legal settlements | | (504) | | | 81 | | | | Restricted security deposits held for customers | | 90 | | | 125 | | | | Accounts payable | | 124 | | | (168) | | | | Settlement obligations | | 750 | | | 356 | | | | Accrued expenses | | 788 | | | (203) | | | | …
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Non-GAAP Financial Information Non-GAAP financial information is defined as a numerical measure of a company’s performance that excludes or includes amounts so as to be different than the most comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Mastercard discloses the following non-GAAP financial measures: adjusted operating expenses, adjusted operating margin, adjusted other income (expense), adjusted effective income tax rate, adjusted net income and adjusted diluted earnings per share (as well as related applicable growth rates versus the comparable period in the prior year). As described more fully below, these non-GAAP financial measures exclude (where applicable) the impact of gains and losses on the company’s equity investments, which includes mark-to-market fair value adjustments, impairments and gains and losses upon disposition, as well as the related tax impacts. These non-GAAP financial measures also exclude (where applicable) the impact of special items, which represent litigation judgments and settlements and/or certain one-time items, as well as the related tax impacts. In addition…
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Non-GAAP Reconciliations (Quarter-to-date) | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | | | | | | | | | Operating expenses | | | | Operating margin | | Other income (expense) | | Effective income tax rate | | Net income | | Diluted earnings per share | | | | | | | | | ($ in millions, except per share data) | Reported - GAAP | | | | | | | | $ | 3,690 | | | | | 60.2 | % | | $ | (101) | | | 20.0 | % | | $ | 4,388 | | | $ | 4.97 | | (Gains) losses on equity investments 1 | | | | | | | | ** | | | | ** | | 2 | | | (0.1) | % | | 5 | | | 0.01 | | Litigation provisions 2 | | | | | | | | (82) | | | | | 0.9 | % | | ** | | 0.1 | % | | 59 | | | 0.07 | | | | | | | | | | | | | | | | | | | | | | | Adjusted - Non-GAAP | | | | | | | | $ | 3,608 | | | | | 61.1 | % | | $ | (100) | | | 20.0 | % | | $ | 4,453 | | | $ | 5.04 | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | | | | | | | | | | | | | | | | | | | | Operating expenses | | | | Operating margin | | Other income (expense) | | Effective income tax rate | | Net income | | Diluted earnings per share | | | | | | | | | | | | | | | | | | | | | ($ in millions, except per share data) | | | | | | | | | | | | | Reported - GAAP | | | | | | | | $ | 3,356 | | | | | 58.7 | % | | $ | (105) | | | 20.8 | % | | $ | 3,701 | | | $ | 4.07 | | | | | | | | | | | | | | (Gains) losses on equity investments 1 | | | | | | | | ** | | | | ** | | (4) | | | 0.1 | % | | (5) | | | (0.01) | | | | | | | | | | | | | | Litigation provisions 3 | | | | | | | | (96) | | | | | 1.2 | % | | ** | | 0.1 | % | | 73 | | | 0.08 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Adjusted - Non-GAAP | | | | | | | | $ | 3,260 | | | | | 59.9 | % | | $ | (109) | | | 20.9 | % | | $ | 3,769 | | | $ | 4.15 | | | | | | | | | | | | | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 as compared to the Three Months Ended June 30, 2025 | | | | | | | | | | | Increase/(Decrease) | | | | | | | | | | | Operating expenses | | | | Operating margin | | Effective income tax rate | | Net income | | Diluted earnings per share | | | Reported - GAAP | | | | | | | | 10 | % | | | | 1.5 | ppt | | (0.8) | ppt | | 19 | % | | 22 | % | | | (Gains) losses on equity investments 1 | | | | | | | | ** | | | | ** | | (0.1) | ppt | | — | % | | — | % | | | Litigation provisions 2,3 | | | | | | | | 1 | % | | | | (0.3) | ppt | | 0.1 | ppt | | (1) | % | | (1) | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Adjusted - Non-GAAP | | | | | | | | 11 | % | | | | 1.2 | ppt | | (0.8) | ppt | | 18 | % | | 21 | % | | | Currency impact 4 | | | | | | | | (1) | % | | | | (0.4) | ppt | | (0.1) | ppt | | (3) | % | | (3) | % | | | Adjusted - Non-GAAP - currency-neutral | | | | | | | | 10 | % | | | | 0.8 | ppt | | (0.9) | ppt | | 16 | % | | 19 | % | | |
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Note: Tables may not sum due to rounding. ** Not applicable
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Gains and Losses on Equity Investments 1. Represents Q2'26 net pre-tax loss of $2 million and Q2’25 net pre-tax gain of $4 million primarily related to unrealized fair market value adjustments on marketable and nonmarketable equity securities. Second Quarter Special Items 2. Represents Q2'26 pre-tax charges of $82 million, which includes a legal provision associated with the ATM non-discrimination rule surcharge complaints, a change in estimate related to the claims of merchants who opted out of the U.S. merchant class litigation and provisions associated with various other legal matters. 3. Represents Q2'25 pre-tax charges of $96 million primarily due to a legal provision associated with the ATM non-discrimination rule surcharge complaints. Other Notes 4. Represents the translational and transactional impact of currency and the related impact of our foreign exchange derivative contracts designated as cash flow hedging instruments (specifically those that manage the impact of foreign currency variability on anticipated revenues and expenses).
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Non-GAAP Reconciliations (Year-to-date) | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | | | | Operating expenses | | Operating margin | | Other income (expense) | | Effective income tax rate | | Net income | | Diluted earnings per share | | | | | ($ in millions, except per share data) | Reported - GAAP | | | | $ | 7,181 | | | 59.4 | % | | $ | (196) | | | 19.7 | % | | $ | 8,270 | | | $ | 9.32 | | (Gains) losses on equity investments 1 | | | | ** | | ** | | 68 | | | (0.1) | % | | 69 | | | 0.08 | | | | | | | | | | | | | | | | | Litigation provisions 2 | | | | (82) | | | 0.5 | % | | ** | | 0.1 | % | | 59 | | | 0.07 | | Restructuring charge 3 | | | | (202) | | | 1.1 | % | | ** | | — | % | | 158 | | | 0.18 | | Adjusted - Non-GAAP | | | | $ | 6,897 | | | 61.0 | % | | $ | (128) | | | 19.7 | % | | $ | 8,556 | | | $ | 9.64 | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | | | | | | | | | | Operating expenses | | Operating margin | | Other income (expense) | | Effective income tax rate | | Net income | | Diluted earnings per share | | | | | | | | | | | ($ in millions, except per share data) | | | | | | | Reported - GAAP | | | | $ | 6,457 | | | 58.0 | % | | $ | (223) | | | 19.8 | % | | $ | 6,981 | | | $ | 7.66 | | | | | | | | (Gains) losses on equity investments 1 | | | | ** | | ** | | 25 | | | — | % | | 19 | | | 0.02 | | | | | | | | Litigation provisions 4 | | | | (247) | | | 1.6 | % | | ** | | 0.3 | % | | 174 | | | 0.19 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Adjusted - Non-GAAP | | | | $ | 6,210 | | | 59.6 | % | | $ | (198) | | | 20.1 | % | | $ | 7,175 | | | $ | 7.87 | | | | | | | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 as compared to the Six Months Ended June 30, 2025 | | | | | Increase/(Decrease) | | | | | Operating expenses | | Operating margin | | Effective income tax rate | | Net income | | Diluted earnings per share | Reported - GAAP | | | | 11 | % | | 1.3 | ppt | | (0.1) | ppt | | 18 | % | | 22 | % | (Gains) losses on equity investments 1 | | | | ** | | ** | | (0.1) | ppt | | 1 | % | | 1 | % | Litigation provisions 2, 4 | | | | 3 | % | | (1.1) | ppt | | (0.2) | ppt | | (2) | % | | (2) | % | Restructuring charge 3 | | | | (3) | % | | 1.1 | ppt | | — | ppt | | 2 | % | | 2 | % | Adjusted - Non-GAAP | | | | 11 | % | | 1.3 | ppt | | (0.4) | ppt | | 19 | % | | 22 | % | Currency impact 5 | | | | (2) | % | | (0.4) | ppt | | (0.1) | ppt | | (4) | % | | (4) | % | Adjusted - Non-GAAP - currency-neutral | | | | 9 | % | | 0.9 | ppt | | (0.4) | ppt | | 15 | % | | 18 | % |
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Note: Tables may not sum due to rounding. ** Not applicable
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Gains and Losses on Equity Investments 1. Represents year-to-date 2026 and 2025 net pre-tax losses of $68 million and $25 million, respectively, primarily related to unrealized fair market value adjustments on marketable and nonmarketable equity securities. Year-to-date Special Items 2. Represents year-to-date 2026 pre-tax charges of $82 million which includes a legal provision associated with the ATM non-discrimination rule surcharge complaints, a change in estimate related to the claims of merchants who opted out of the U.S. merchant class litigation and provisions associated with various other legal matters. 3. Represents year-to-date 2026 pre-tax charge of $202 million as a result of a restructuring action primarily intended to enable reinvestment to support the realization of our long-term growth opportunities. 4. Represents year-to-date 2025 pre-tax charges of $247 million primarily as a result of a change in estimate related to the claims of merchants who opted out of the U.S. merchant class litigation and a legal provision associated with the ATM non-discrimination rule surcharge complaints. Other Notes 5. Represents the translational and transactional impact of cur…
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Mastercard Incorporated Operating Performance | | | | | Three Months Ended June 30, 2026 | | | | | GDV (Bil.) | | Growth (USD) | | Growth (Local) | | Purchase Volume (Bil.) | | Growth (Local) | | Purchase Trans. (Mil.) | | Purchase Trans. Growth | | Cash Volume (Bil.) | | Growth (Local) | | Cash Trans. (Mil.) | | Cards (Mil.) | | | All Mastercard Credit, Charge and Debit Programs | | | APMEA | | $ | 654 | | | 8.1 | % | | 8.4 | % | | $ | 508 | | | 10.9 | % | | 13,813 | | | 11.2 | % | | $ | 146 | | | 0.5 | % | | 1,342 | | | 1,052 | | | | Canada | | 76 | | | 8.1 | % | | 8.1 | % | | 74 | | | 8.2 | % | | 1,242 | | | 8.0 | % | | 2 | | | 2.3 | % | | 7 | | | 98 | | | | Europe | | 1,025 | | | 9.6 | % | | 8.5 | % | | 838 | | | 10.5 | % | | 21,998 | | | 8.5 | % | | 186 | | | 0.5 | % | | 874 | | | 986 | | | | Latin America | | 269 | | | 24.4 | % | | 13.9 | % | | 203 | | | 16.9 | % | | 8,250 | | | 16.8 | % | | 66 | | | 5.6 | % | | 420 | | | 588 | | | | Worldwide less United States | | 2,024 | | | 10.8 | % | | 9.1 | % | | 1,623 | | | 11.3 | % | …