Mastercard Inc. (NYSE:MA) released its first-quarter earnings results Thursday morning. The payments giant exceeded Wall Street expectations on both the top and bottom lines.
The company reported adjusted earnings per share of $4.60. This figure beat the analyst estimate of $4.40.
Net revenue reached $8.398 billion, surpassing the projected $8.250 billion, according to Benzinga Pro data.
Mastercard Key Metrics
Mastercard’s growth stems from its payment network and value-added services.
Payment network net revenue rose 12%, or 8% on a currency-neutral basis, driven by a 7% increase in gross dollar volume to $2.7 trillion, 13% growth in cross-border volume and a 9% rise in switched transactions. The gain also reflected a 23% increase in rebates and incentives, tied to higher volumes and new or renewed customer deals.
Value-added services and solutions revenue climbed 22%, or 18% on a currency-neutral basis, supported by growth in security, digital and authentication offerings, as well as business insights and customer engagement services, along with pricing improvements.
CEO Michael Miebach noted the company’s evolution beyond traditional swipes. “Mastercard is diversified, future-ready, and delivering,” Miebach stated. In the first quarter, “net revenue increased 16%, and value-added services and solutions grew 22% year over year.”
Future-Ready Payments Strategy
The company is leaning into emerging financial technologies. Miebach highlighted the planned acquisition of BVNK to expand stablecoin solutions.
“We’re advancing agentic commerce with Mastercard Agent Pay,” Miebach added. “We’re well positioned to capture the next wave of digital payments growth.”
Aggressive Capital Returns
Mastercard continues to reward its shareholders through significant buybacks. During the first quarter, the company repurchased 7.8 million shares at a cost of $4 billion.
Through April 27, it bought an additional 3.3 million shares for $1.7 billion. The company still has $11.7 billion remaining under its current repurchase authorization.
Operational Expenses and Outlook
Operating expenses rose 13% compared to 2025. This increase included a restructuring charge during the quarter.
However, the core business remains robust. As of March 31, customers had issued 3.7 billion Mastercard and Maestro-branded cards globally. The company ended the quarter with $7.906 billion in cash and cash equivalents.
Mastercard Price Action
MA Stock Price Activity: Mastercard shares were down 2.24% at $513.48 during premarket trading on Thursday, according to Benzinga Pro data.
Mastercard shares rose 3.5% in the prior trading session ahead of the company’s earnings release, following a sector-wide rally triggered by stronger-than-expected results from Visa Inc. (NYSE:V).
This advance indicates that market expectations were already elevated, thereby limiting the potential for additional near-term upside upon the release of the current report.
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