Mastercard Q1 2026: $0.73 EPS beats expectations as revenue climbs 14%

Mastercard (NYSE: MA) posted first-quarter 2026 earnings on March 31, 2026, with net income of $870 million, or $0.73 per share, beating analyst expectations of $0.72 per share. The world’s second-largest debit and credit card company reported net revenue of $2.18 billion, up 14% from the year-earlier period, as global purchase volume increased 10% on a local currency basis to $759 billion.

Financial Performance

Mastercard’s profit rose 14% as card spending accelerated across regions. U.S. purchase volume climbed 9% to $268 billion from a year earlier. Analysts tracked by Reuters I/B/E/S had expected $0.72 per share on $2.14 billion in revenue, making the company’s results a modest beat.

For the full quarter, net income climbed from $766 million, or $0.62 per share, a year earlier. The company’s performance was supported by stronger consumer data, with a global survey showing U.S. consumer sentiment rose sharply in the first quarter as optimism over the economy improved. Confidence also rose in debt-heavy eurozone countries.

Revenue Breakdown by Business Segment

Mastercard’s first-quarter net revenue increased 16% from the same period in 2025, or 12% on a currency-neutral basis, driven by its payment network and value-added services and solutions business.

Payment network net revenue rose 12%, or 8% after currency moves. Gross dollar volume grew 7% in local currency terms to $2.7 trillion. Cross-border volume climbed 13%, while switched transactions rose 9%. The company also increased customer rebates and incentives by 23%, or 19% on a currency-neutral basis, due to growth in main business drivers and new and renewed agreements.

Value-added services and solutions net revenue rose 22%, or 18% on a currency-neutral basis, with growth coming from security products, digital and authentication tools, business and market insights, consumer acquisition and engagement services, and pricing.

Crypto Expansion and Strategic Initiatives

Mastercard CEO Michael Miebach said in a statement: “Building on our strong foundation, we’re advancing agentic commerce with Mastercard Agent Pay and expanding our stablecoin solutions through the planned acquisition of BVNK. We’re well positioned to capture the next wave of digital payments growth and continue to support secure commerce around the world.”

In March 2026, Mastercard agreed to acquire stablecoin firm BVNK for up to $1.8 billion. The company has also expanded work with Circle Internet Group Inc. and Binance. As of March 31, 2026, customers had issued 3.7 billion Mastercard and Maestro-branded cards.

Operating Expenses and Tax Impact

Total operating expenses rose 13% from the year-earlier period, mainly due to higher general and administrative costs, including a restructuring charge in the first quarter of 2026. Lower litigation provisions partly offset the increase. Excluding special items, adjusted operating expenses rose 11%, or 9% on a currency-neutral basis.

Other income and expense improved by $23 million from a year earlier, mainly tied to government grant agreements executed in the fourth quarter of 2025, partly offset by higher net losses on equity investments. The effective tax rate was 19.3%, up from 18.6% in 2025, due to lower net discrete tax benefits.

Market Context and Stock Performance

Visa (NYSE: V) said last week that U.S. sanctions on Russia were hurting card transactions and that revenue growth would slow further in the current quarter. Mastercard made no mention of Russia in its earnings statement. Mastercard shares fell 2.1% in premarket trading following the announcement. The stock was down 11.1% year-to-date, while the S&P 500 was up 1.6%.