Mastercard (NYSE: MA) lifts Q1 2026 EPS 23% and ramps $4B buybacks
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Mastercard Incorporated reported strong growth for the first quarter of 2026. Net revenue rose to $8.4 billion, up 16% year over year, as payment network activity and value-added services expanded.
Net income increased to $3.9 billion and diluted EPS reached $4.35, gains of 18% and 21%. On an adjusted basis, net income was $4.1 billion and diluted EPS was $4.60, up 20% and 23%. Gross dollar volume grew 7% to $2.7 trillion, with cross-border volume up 13% and switched transactions up 9% on a local currency basis.
Operating expenses rose 13%, including a restructuring charge, but adjusted operating margin still improved to 60.8%. The company returned significant capital, repurchasing 7.8 million shares for $4.0 billion and paying $777 million in dividends. As of March 31, 2026, customers had issued 3.7 billion Mastercard and Maestro-branded cards.
Positive
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Negative
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Insights
Mastercard delivered double-digit Q1 growth with expanding margins and heavy buybacks.
Mastercard posted Q1 2026 net revenue of $8.4 billion, up 16%, driven by higher payment network activity and a 22% rise in value-added services. Gross dollar volume reached $2.7 trillion, up 7% in local currency, with cross-border volume up 13%.
GAAP net income grew to $3.9 billion and diluted EPS to $4.35, while adjusted net income of $4.1 billion and adjusted EPS of $4.60 rose 20% and 23%. Adjusted operating margin improved to 60.8% despite higher general and administrative expenses and a restructuring charge.
The company generated operating cash flow of $2.999 billion and continued substantial capital returns, repurchasing 7.8 million shares for $4.0 billion and paying $777 million in dividends in the quarter. Worldwide card issuance reached 3.7 billion cards as of March 31 2026, reflecting broad network scale.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net revenue: $8.4 billion
Net income: $3.9 billion
Diluted EPS: $4.35
+5 more
8 metrics
Net revenue
$8.4 billion
Q1 2026, up 16% year over year (12% currency-neutral)
Net income
$3.9 billion
Q1 2026, up 18% versus Q1 2025
Diluted EPS
$4.35
Q1 2026 GAAP, up 21% year over year
Adjusted diluted EPS
$4.60
Q1 2026, up 23% versus Q1 2025
Gross dollar volume
$2.7 trillion
Q1 2026, up 7% on a local currency basis
Cross-border volume growth
13%
Q1 2026, local currency basis year-over-year
Share repurchases
$4.0 billion
7.8 million shares repurchased in Q1 2026
Operating margin (adjusted)
60.8%
Q1 2026, up from 59.3% in Q1 2025
Key Terms
currency-neutral basis, value-added services and solutions, gross dollar volume, adjusted operating margin, +2 more
6 terms
currency-neutral basis financial
"net revenue of $8.4 billion, an increase of 16%, or 12% on a currency-neutral basis"
A currency-neutral basis is a way of reporting sales, earnings or growth as if exchange rates had not changed, isolating a company's underlying performance from the ups and downs of foreign currencies. It matters because exchange-rate swings can make results look better or worse even when the business itself didn’t change, so this measure helps investors compare true operational trends across periods or countries—like using the same ruler to measure progress rather than one that stretches.
value-added services and solutions financial
"value-added services and solutions net revenue increased 22%, or 18% on a currency-neutral basis"
gross dollar volume financial
"Gross dollar volume growth of 7%, on a local currency basis, to $2.7 trillion"
Gross dollar volume is the total dollar value of all shares or securities traded on an exchange or platform over a given period, calculated by multiplying each trade’s share count by its price and adding them up. Think of it like the total sales dollars at a busy store: higher gross dollar volume shows more trading activity and liquidity, which matters to investors because it affects how easily positions can be bought or sold and signals market interest in a security.
adjusted operating margin financial
"Adjusted operating margin | 60.8% | 59.3% | 1.5 ppt"
Adjusted operating margin shows how much profit a company makes from its core business activities, after removing unusual or one-time costs and income. It helps investors see the company's true profitability by providing a clearer picture, similar to removing unexpected expenses to understand the regular performance. This metric is useful for comparing companies or tracking performance over time, as it highlights consistent earning power.
non-GAAP financial measures financial
"Non-GAAP financial information is defined as a numerical measure of a company’s performance that excludes or includes amounts"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
restructuring charge financial
"higher general and administrative expenses which included a restructuring charge in the first quarter of 2026"
A restructuring charge is a one-time accounting expense a company records when it reorganizes operations—like closing facilities, laying off staff, or writing down assets—to make the business leaner or change strategy. Think of it as the short-term cost of renovating a house to lower future bills: it reduces reported profit and may use cash now, but investors watch it to judge whether the cleanup will improve future profitability or hide ongoing problems.
Earnings Snapshot
Net revenue: $8.4 billion
Q1 2026
Net revenue
$8.4 billion
+16% YoY
Net income
$3.9 billion
+18% YoY
Diluted EPS
$4.35
+21% YoY
Adjusted net income
$4.1 billion
+20% YoY
Adjusted diluted EPS
$4.60
+23% YoY
Adjusted operating margin
60.8%
+1.5 ppt YoY
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________
FORM 8-K
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_______________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
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1
Item 2.02 Results of Operations and Financial Condition
On April 30, 2026, Mastercard Incorporated issued an earnings release announcing financial results for its first quarter 2026.
A copy of the earnings release is attached hereto as Exhibit 99.1. All information in the earnings release is furnished but not filed.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
| Exhibit Number | Exhibit Description | ||||
99.1 | Earnings Release issued by Mastercard Incorporated, dated April 30, 2026 | ||||
| 104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MASTERCARD INCORPORATED | ||||||||||||||
| Date: | April 30, 2026 | By: | /s/ Gina Accordino | |||||||||||
Gina Accordino | ||||||||||||||
| Corporate Secretary | ||||||||||||||
3
Earnings Release |  | ||||
Mastercard Incorporated Reports First Quarter 2026 Financial Results
•First quarter net income of $3.9 billion, and diluted earnings per share (EPS) of $4.35
•First quarter adjusted net income of $4.1 billion, and adjusted diluted EPS of $4.60
•First quarter net revenue of $8.4 billion, an increase of 16%, or 12% on a currency-neutral basis
•First quarter gross dollar volume up 7% and purchase volume up 9%, on a local currency basis
Purchase, NY - April 30, 2026 - Mastercard Incorporated (NYSE: MA) today announced financial results for the first quarter 2026.
“Mastercard is diversified, future-ready, and delivering. In Q1, net revenue increased 16%, and value-added services and solutions grew 22% year over year — or 12% and 18% respectively on a currency-neutral basis. 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.” — Michael Miebach, CEO
Quarterly Results
First Quarter Operating Results | Increase / (Decrease) | |||||||||||||||||||||||||
| $ in billions, except per share data | Q1 2026 | Q1 2025 | Reported GAAP | Currency-neutral | ||||||||||||||||||||||
| Net revenue | $8.4 | $7.3 | 16% | 12% | ||||||||||||||||||||||
| Operating expenses | $3.5 | $3.1 | 13% | 10% | ||||||||||||||||||||||
| Operating income | $4.9 | $4.1 | 18% | 13% | ||||||||||||||||||||||
| Operating margin | 58.4% | 57.2% | 1.2 ppt | 0.6 ppt | ||||||||||||||||||||||
| Effective income tax rate | 19.3% | 18.6% | 0.7 ppt | 0.6 ppt | ||||||||||||||||||||||
| Net income | $3.9 | $3.3 | 18% | 13% | ||||||||||||||||||||||
| Diluted EPS | $4.35 | $3.59 | 21% | 16% | ||||||||||||||||||||||
Key First Quarter Non-GAAP Results 1 | Increase / (Decrease) | |||||||||||||||||||||||||
$ in billions, except per share data | Q1 2026 | Q1 2025 | As adjusted | Currency-neutral | ||||||||||||||||||||||
| Net revenue | $8.4 | $7.3 | 16% | 12% | ||||||||||||||||||||||
| Adjusted operating expenses | $3.3 | $3.0 | 11% | 9% | ||||||||||||||||||||||
| Adjusted operating margin | 60.8% | 59.3% | 1.5 ppt | 1.0 ppt | ||||||||||||||||||||||
| Adjusted effective income tax rate | 19.2% | 19.1% | 0.1 ppt | 0.1 ppt | ||||||||||||||||||||||
| Adjusted net income | $4.1 | $3.4 | 20% | 15% | ||||||||||||||||||||||
| Adjusted diluted EPS | $4.60 | $3.73 | 23% | 18% | ||||||||||||||||||||||
1 The Key First Quarter Non-GAAP Results exclude the impact of gains and losses on the company’s equity investments, special items as described on page 10 (“First Quarter Special Items”) and/or the translational and transactional impact of currency and the related impact of the company’s 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). See page 10 for the company’s non-GAAP adjustments and the reconciliation to GAAP reported amounts. | ||||||||||||||||||||||||||
Q1 2026 Key Business Drivers (YoY growth) | |||||||||||||||||||||||
 | Gross dollar volume |  | Cross-border volume |  | Switched transactions | ||||||||||||||||||
| (local currency basis) | (local currency basis) | ||||||||||||||||||||||
up 7% | up 13% | up 9% | |||||||||||||||||||||
The following information is provided to aid in understanding Mastercard’s first quarter 2026 results, versus the year ago period.
•Net revenue increased 16%, or 12% on a currency-neutral basis versus the comparable period in 2025. This increase was attributable to growth in our payment network and value-added services and solutions.
▪Payment network net revenue increased 12%, or 8% on a currency-neutral basis. Primary drivers of the increase were as follows:
•Gross dollar volume growth of 7%, on a local currency basis, to $2.7 trillion.
•Cross-border volume growth of 13% 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 23%, or 19% 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 22%, or 18% on a currency-neutral basis. The increase was driven primarily by growth in our underlying key drivers, our security solutions, digital and authentication solutions, business and market insights and consumer acquisition and engagement services, and pricing.
•Total operating expenses increased 13% as compared to the same period in 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 First Quarter Special Items, adjusted operating expenses increased 11%, or 9% on a currency-neutral basis, primarily due to higher general and administrative expenses.
•Other income (expense) was favorable by $23 million versus the year ago period, primarily due to government grant agreements executed in the fourth quarter 2025, partially offset by higher net losses on our equity investments year over year. Excluding the impact of net gains and losses on our equity investments, adjusted other income (expense) was favorable by $61 million versus the year ago period primarily due to government grants.
•The effective tax rate for the first quarter of 2026 was 19.3%, versus 18.6% for the comparable period in 2025, primarily due to lower net discrete tax benefits in 2026. The adjusted effective tax rate for the first quarter of 2026 was 19.2%, versus 19.1% for the comparable period in 2025.
•As of March 31, 2026, the company’s customers had issued 3.7 billion Mastercard and Maestro-branded cards.
 | 2 | |||||||
Return of Capital to Shareholders
During the first quarter of 2026, Mastercard repurchased 7.8 million shares at a cost of $4.0 billion and paid $777 million in dividends.
Quarter-to-date through April 27, the company repurchased 3.3 million shares at a cost of $1.7 billion, which leaves $11.7 billion remaining under approved share repurchase programs.
First Quarter 2026 Financial Results Conference Call Details
At 9:00 a.m. ET today, the company will host a conference call to discuss its first quarter 2026 results. The dial-in information for this call is 1-888-330-2508 (Toll-free) and 1-240-789-2735 (Toll dial-in), using passcode 6451878. A replay of the call will be available for 30 days and can be accessed by dialing 1-800-770-2030 (Toll-free) and 1-647-362-9199 (Toll dial-in), using passcode 6451878.
A live audio webcast of this call, along with presentation slides, can also be accessed through the Investor Relations section of the company’s website at investor.mastercard.com.
Forward-Looking Statements
This press release contains forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts may be forward-looking statements. When used in this press release, the words “believe”, “expect”, “could”, “may”, “would”, “will”, “trend” and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements that relate to the company’s future prospects, developments and business strategies. We caution you to not place undue reliance on these forward-looking statements, as they speak only as of the date they are made. Except for the company’s ongoing obligations under the U.S. federal securities laws, the company does not intend to update or otherwise revise the forward-looking information to reflect actual results of operations, changes in financial condition, changes in estimates, expectations or assumptions, changes in general economic or 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 payments systems, and issuer and acquirer practices regulation)
•the impact of changes in tax laws, as well as regulations and interpretations of such laws or challenges to our tax positions
•potential or incurred liability and limitations on business related to any litigation or litigation settlements
•the impact of competition in the global payments industry (including disintermediation and pricing pressure)
| 3 | |||||||
•the challenges relating to rapid technological developments and changes
•the challenges relating to operating a real-time account-based payments system and to working with new customers and end users
•the impact of information security incidents, account data breaches or service disruptions
•issues related to our relationships with our stakeholders (including loss of substantial business from significant customers, competitor relationships with our customers, consolidation amongst our customers, merchants’ continued focus on acceptance costs and unique risks from our work with governments)
•the impact of global economic, political, financial and societal events and conditions, including adverse currency fluctuations and foreign exchange controls
•reputational impact, including impact related to brand perception and lack of visibility of our brands in products and services
•the impact of environmental, social and governance matters and related stakeholder reaction
•the inability to attract and retain a highly qualified workforce, or maintain our corporate culture
•issues related to acquisition integration, strategic investments and entry into new businesses
•exposure to loss or illiquidity due to our role as guarantor as well as other contractual obligations and discretionary actions we may take
•issues related to our Class A common stock and corporate governance structure
For additional information on these and other factors that could cause the company’s actual results to differ materially from expected results, please see the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K for the year ended December 31, 2025 and any subsequent reports on Forms 10-Q and 8-K.
| 4 | |||||||
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
Contacts:
| Investor Relations: | Media Relations: | ||||
Devin Corr | Seth Eisen | ||||
| investor.relations@mastercard.com | Seth.Eisen@mastercard.com | ||||
| 914-249-4565 | 914-249-3153 | ||||
| 5 | |||||||
Consolidated Statements of Operations (Unaudited) | ||||||||||||||
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| (in millions, except per share data) | ||||||||||||||
| Net Revenue | $ | 8,398 | $ | 7,250 | ||||||||||
| Operating Expenses: | ||||||||||||||
| General and administrative | 3,039 | 2,523 | ||||||||||||
| Advertising and marketing | 153 | 152 | ||||||||||||
| Depreciation and amortization | 299 | 275 | ||||||||||||
| Provision for litigation | — | 151 | ||||||||||||
| Total operating expenses | 3,491 | 3,101 | ||||||||||||
| Operating income | 4,907 | 4,149 | ||||||||||||
| Other Income (Expense): | ||||||||||||||
| Investment income | 81 | 88 | ||||||||||||
| Gains (losses) on equity investments, net | (66) | (29) | ||||||||||||
| Interest expense | (185) | (182) | ||||||||||||
| Other income (expense), net | 75 | 5 | ||||||||||||
| Total other income (expense) | (95) | (118) | ||||||||||||
| Income before income taxes | 4,812 | 4,031 | ||||||||||||
| Income tax expense | 930 | 751 | ||||||||||||
| Net Income | $ | 3,882 | $ | 3,280 | ||||||||||
| Basic Earnings per Share | $ | 4.35 | $ | 3.60 | ||||||||||
| Basic weighted-average shares outstanding | 891 | 912 | ||||||||||||
| Diluted Earnings per Share | $ | 4.35 | $ | 3.59 | ||||||||||
| Diluted weighted-average shares outstanding | 893 | 914 | ||||||||||||
| 6 | |||||||
Consolidated Balance Sheets (Unaudited) | ||||||||||||||
| March 31, 2026 | December 31, 2025 | |||||||||||||
| (in millions, except per share data) | ||||||||||||||
| Assets | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 7,906 | $ | 10,566 | ||||||||||
| Restricted cash and restricted cash equivalents | 551 | 561 | ||||||||||||
| Restricted security deposits held for customers | 2,307 | 2,121 | ||||||||||||
| Investments | 313 | 332 | ||||||||||||
| Accounts receivable | 4,720 | 4,609 | ||||||||||||
| Settlement assets | 2,062 | 1,626 | ||||||||||||
| Prepaid expenses and other current assets | 4,639 | 3,743 | ||||||||||||
| Total current assets | 22,498 | 23,558 | ||||||||||||
Property, equipment and right-of-use assets, net of accumulated depreciation and amortization of $2,818 and $2,756, respectively | 2,349 | 2,303 | ||||||||||||
| Deferred income taxes | 1,396 | 1,567 | ||||||||||||
| Goodwill | 9,525 | 9,560 | ||||||||||||
Other intangible assets, net of accumulated amortization of $3,242 and $3,096, respectively | 5,495 | 5,554 | ||||||||||||
| Other assets | 11,186 | 11,615 | ||||||||||||
| Total Assets | $ | 52,449 | $ | 54,157 | ||||||||||
| Liabilities and Equity | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable | $ | 1,030 | $ | 999 | ||||||||||
| Settlement obligations | 2,544 | 2,409 | ||||||||||||
| Restricted security deposits held for customers | 2,307 | 2,121 | ||||||||||||
| Accrued litigation | 339 | 800 | ||||||||||||
| Accrued expenses | 12,327 | 13,272 | ||||||||||||
| Short-term debt | 1,748 | 749 | ||||||||||||
| Other current liabilities | 2,639 | 2,412 | ||||||||||||
| Total current liabilities | 22,934 | 22,762 | ||||||||||||
| Long-term debt | 17,212 | 18,251 | ||||||||||||
| Deferred income taxes | 331 | 307 | ||||||||||||
| Other liabilities | 5,250 | 5,091 | ||||||||||||
| Total Liabilities | 45,727 | 46,411 | ||||||||||||
| Commitments and Contingencies | ||||||||||||||
| Stockholders’ Equity | ||||||||||||||
Class A common stock, $0.0001 par value; authorized 3,000 shares, 1,406 shares issued and 880 and 887 shares outstanding, respectively | — | — | ||||||||||||
Class B common stock, $0.0001 par value; authorized 1,200 shares, 7 shares issued and outstanding | — | — | ||||||||||||
| Additional paid-in-capital | 6,843 | 6,907 | ||||||||||||
Class A treasury stock, at cost, 526 and 518 shares, respectively | (87,342) | (83,224) | ||||||||||||
| Retained earnings | 88,146 | 85,035 | ||||||||||||
| Accumulated other comprehensive income (loss) | (928) | (981) | ||||||||||||
| Mastercard Incorporated Stockholders' Equity | 6,719 | 7,737 | ||||||||||||
| Non-controlling interests | 3 | 9 | ||||||||||||
| Total Equity | 6,722 | 7,746 | ||||||||||||
| Total Liabilities and Equity | $ | 52,449 | $ | 54,157 | ||||||||||
| 7 | |||||||
Consolidated Statements of Cash Flows (Unaudited) | |||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| (in millions) | |||||||||||||||||
| Operating Activities | |||||||||||||||||
| Net income | $ | 3,882 | $ | 3,280 | |||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
| Amortization of customer incentives | 620 | 476 | |||||||||||||||
| Depreciation and amortization | 299 | 275 | |||||||||||||||
| (Gains) losses on equity investments, net | 66 | 29 | |||||||||||||||
| Share-based compensation | 136 | 129 | |||||||||||||||
| Deferred income taxes | 193 | 37 | |||||||||||||||
| Other | 17 | 38 | |||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||
| Accounts receivable | (110) | (118) | |||||||||||||||
| Settlement assets | (437) | (296) | |||||||||||||||
| Prepaid expenses | (2,061) | (1,458) | |||||||||||||||
| Accrued litigation and legal settlements | (461) | 119 | |||||||||||||||
| Restricted security deposits held for customers | 199 | 26 | |||||||||||||||
| Accounts payable | 14 | 80 | |||||||||||||||
| Settlement obligations | 135 | 124 | |||||||||||||||
| Accrued expenses | 39 | (784) | |||||||||||||||
| Net change in other assets and liabilities | 468 | 423 | |||||||||||||||
| Net cash provided by operating activities | 2,999 | 2,380 | |||||||||||||||
| Investing Activities | |||||||||||||||||
| Purchases of investment securities available-for-sale | (68) | (119) | |||||||||||||||
| Purchases of investments held-to-maturity | — | (8) | |||||||||||||||
| Proceeds from sales of investment securities available-for-sale | 24 | 49 | |||||||||||||||
| Proceeds from maturities of investment securities available-for-sale | 44 | 76 | |||||||||||||||
| Proceeds from maturities of investments held-to-maturity | 13 | 16 | |||||||||||||||
| Purchases of property and equipment | (154) | (159) | |||||||||||||||
| Capitalized software | (181) | (198) | |||||||||||||||
| Other investing activities | (40) | 3 | |||||||||||||||
| Net cash used in investing activities | (362) | (340) | |||||||||||||||
| Financing Activities | |||||||||||||||||
| Purchases of treasury stock | (4,035) | (2,549) | |||||||||||||||
| Dividends paid | (777) | (694) | |||||||||||||||
| Proceeds from debt, net | — | 1,242 | |||||||||||||||
| Payment of debt | — | (750) | |||||||||||||||
| Tax withholdings related to share-based payments | (204) | (277) | |||||||||||||||
| Cash proceeds from employee stock plans | 11 | 41 | |||||||||||||||
| Net cash used in financing activities | (5,005) | (2,987) | |||||||||||||||
| Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (116) | 121 | |||||||||||||||
| Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents | (2,484) | (826) | |||||||||||||||
| Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period | 13,248 | 10,808 | |||||||||||||||
| Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period | $ | 13,248 | $ | 9,982 | |||||||||||||
| 8 | |||||||
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, the company presents growth rates adjusted for the impact of currency, which is a non-GAAP financial measure. Currency-neutral growth rates are calculated by remeasuring the prior period’s results using the current period’s exchange rates for both the translational and transactional impacts on operating results. The impact of currency translation represents the effect of translating operating results where the functional currency is different from the company’s U.S. dollar reporting currency. The impact of the transactional currency represents the effect of converting revenue and expenses occurring in a currency other than the functional currency of the entity. The impact of the related realized gains and losses resulting from the company’s 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) is recognized in the respective financial statement line item on the statements of operations when the underlying forecasted transactions impact earnings. The translational and transactional impact of currency and the related impact of the company’s foreign exchange derivative contracts designated as cash flow hedging instruments as specified above have been excluded from the company’s currency-neutral growth rates.
The company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The company’s management uses non-GAAP financial measures to evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of performance-based compensation, among other things. The company excluded these items because management evaluates the underlying operations and performance of the company separately from these recurring and nonrecurring items. The presentation of non-GAAP financial measures should not be relied upon as substitutes for the company’s measures calculated in accordance with GAAP.
The company includes reconciliations of the requisite non-GAAP financial measures to the most directly comparable GAAP financial measures in the non-GAAP reconciliation tables below.
| 9 | |||||||
Non-GAAP Reconciliations (QTD) | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 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 | $ | 3,491 | 58.4 | % | $ | (95) | 19.3 | % | $ | 3,882 | $ | 4.35 | ||||||||||||||||||||||||||
(Gains) losses on equity investments 1 | ** | ** | 66 | (0.2) | % | 63 | 0.07 | |||||||||||||||||||||||||||||||
Restructuring charge 2 | (202) | 2.4 | % | ** | 0.1 | % | 158 | 0.18 | ||||||||||||||||||||||||||||||
| Adjusted - Non-GAAP | $ | 3,289 | 60.8 | % | $ | (28) | 19.2 | % | $ | 4,103 | $ | 4.60 | ||||||||||||||||||||||||||
| Three Months Ended March 31, 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 | $ | 3,101 | 57.2 | % | $ | (118) | 18.6 | % | $ | 3,280 | $ | 3.59 | ||||||||||||||||||||||||||
(Gains) losses on equity investments 1 | ** | ** | 29 | — | % | 25 | 0.03 | |||||||||||||||||||||||||||||||
Litigation provisions 3 | (151) | 2.1 | % | ** | 0.5 | % | 102 | 0.11 | ||||||||||||||||||||||||||||||
| Adjusted - Non-GAAP | $ | 2,950 | 59.3 | % | $ | (89) | 19.1 | % | $ | 3,406 | $ | 3.73 | ||||||||||||||||||||||||||
| Three Months Ended March 31, 2026 as compared to the Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||||||||
| Increase/(Decrease) | ||||||||||||||||||||||||||||||||
| Operating expenses | Operating margin | Effective income tax rate | Net income | Diluted earnings per share | ||||||||||||||||||||||||||||
| Reported - GAAP | 13 | % | 1.2 | ppt | 0.7 | ppt | 18 | % | 21 | % | ||||||||||||||||||||||
(Gains) losses on equity investments 1 | ** | ** | (0.2) | ppt | 1 | % | 1 | % | ||||||||||||||||||||||||
Litigation provisions 3 | 6 | % | (2.1) | ppt | (0.5) | ppt | (4) | % | (4) | % | ||||||||||||||||||||||
Restructuring charge 2 | (7) | % | 2.4 | ppt | 0.1 | ppt | 5 | % | 5 | % | ||||||||||||||||||||||
| Adjusted - Non-GAAP | 11 | % | 1.5 | ppt | 0.1 | ppt | 20 | % | 23 | % | ||||||||||||||||||||||
Currency impact 4 | (3) | % | (0.5) | ppt | (0.1) | ppt | (6) | % | (6) | % | ||||||||||||||||||||||
| Adjusted - Non-GAAP - currency-neutral | 9 | % | 1.0 | ppt | 0.1 | ppt | 15 | % | 18 | % | ||||||||||||||||||||||
Note: Tables may not sum due to rounding.
** Not applicable
Gains and Losses on Equity Investments
1.Represents Q1'26 and Q1’25 net pre-tax losses of $66 million and $29 million, respectively, primarily related to unrealized fair market value adjustments on marketable and nonmarketable equity securities.
First Quarter Special Items
2.Represents Q1'26 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.
3.Represents Q1'25 pre-tax charges of $151 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.
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).
| 10 | |||||||
Mastercard Incorporated Operating Performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 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 | $ | 645 | 8.9 | % | 6.3 | % | $ | 495 | 9.0 | % | 12,921 | 10.9 | % | $ | 150 | (1.9) | % | 1,370 | 1,036 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Canada | 68 | 12.5 | % | 7.5 | % | 66 | 7.7 | % | 1,105 | 8.8 | % | 2 | 3.4 | % | 7 | 96 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Europe | 943 | 17.1 | % | 9.2 | % | 770 | 11.2 | % | 19,699 | 7.7 | % | 173 | 0.9 | % | 809 | 975 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Latin America | 252 | 24.1 | % | 13.4 | % | 187 | 15.8 | % | 7,771 | 15.3 | % | 64 | 7.0 | % | 407 | 571 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide less United States | 1,908 | 14.8 | % | 8.6 | % | 1,518 | 10.9 | % | 41,496 | 10.1 | % | 390 | 0.7 | % | 2,593 | 2,678 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| United States | 795 | 4.2 | % | 4.2 | % | 732 | 5.0 | % | 10,836 | 3.0 | % | 62 | (3.8) | % | 260 | 730 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide | 2,703 | 11.5 | % | 7.3 | % | 2,251 | 8.9 | % | 52,332 | 8.5 | % | 452 | 0.1 | % | 2,852 | 3,408 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mastercard Credit and Charge Programs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide less United States | 831 | 13.7 | % | 9.2 | % | 792 | 9.6 | % | 17,241 | 7.3 | % | 39 | 1.5 | % | 138 | 839 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| United States | 417 | 7.9 | % | 7.9 | % | 405 | 8.1 | % | 4,235 | 7.6 | % | 11 | 1.5 | % | 9 | 358 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide | 1,248 | 11.7 | % | 8.7 | % | 1,198 | 9.1 | % | 21,476 | 7.3 | % | 50 | 1.5 | % | 147 | 1,197 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mastercard Debit Programs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide less United States | 1,077 | 15.8 | % | 8.2 | % | 726 | 12.3 | % | 24,255 | 12.2 | % | 351 | 0.7 | % | 2,455 | 1,838 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| United States | 378 | 0.5 | % | 0.5 | % | 327 | 1.4 | % | 6,601 | 0.3 | % | 51 | (4.9) | % | 251 | 372 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide | 1,455 | 11.4 | % | 6.1 | % | 1,053 | 8.7 | % | 30,856 | 9.4 | % | 402 | (0.1) | % | 2,706 | 2,210 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | $ | 593 | 3.0 | % | 7.1 | % | $ | 442 | 7.7 | % | 11,651 | 8.9 | % | $ | 151 | 5.2 | % | 1,463 | 980 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Canada | 60 | (2.0) | % | 4.4 | % | 58 | 4.4 | % | 1,016 | 5.7 | % | 2 | 2.2 | % | 6 | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Europe | 806 | 8.7 | % | 12.9 | % | 645 | 14.7 | % | 18,291 | 10.1 | % | 160 | 6.2 | % | 888 | 919 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Latin America | 203 | (1.4) | % | 13.2 | % | 148 | 18.9 | % | 6,739 | 12.7 | % | 54 | 0.1 | % | 419 | 490 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide less United States | 1,661 | 4.9 | % | 10.5 | % | 1,294 | 12.2 | % | 37,697 | 10.1 | % | 367 | 4.8 | % | 2,777 | 2,478 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| United States | 762 | 6.9 | % | 6.9 | % | 698 | 6.9 | % | 10,520 | 6.3 | % | 65 | 7.2 | % | 278 | 698 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide | 2,424 | 5.5 | % | 9.3 | % | 1,992 | 10.3 | % | 48,217 | 9.2 | % | 432 | 5.1 | % | 3,055 | 3,177 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mastercard Credit and Charge Programs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide less United States | 731 | 2.5 | % | 8.6 | % | 694 | 9.2 | % | 16,073 | 7.4 | % | 37 | (0.5) | % | 147 | 819 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| United States | 386 | 6.0 | % | 6.0 | % | 375 | 5.9 | % | 3,936 | 5.5 | % | 11 | 8.1 | % | 9 | 338 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide | 1,117 | 3.6 | % | 7.7 | % | 1,069 | 8.0 | % | 20,009 | 7.0 | % | 48 | 1.4 | % | 155 | 1,157 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mastercard Debit Programs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide less United States | 930 | 6.9 | % | 11.9 | % | 600 | 15.9 | % | 21,624 | 12.1 | % | 331 | 5.4 | % | 2,631 | 1,660 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| United States | 376 | 8.0 | % | 8.0 | % | 323 | 8.1 | % | 6,584 | 6.9 | % | 54 | 7.0 | % | 269 | 360 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide | 1,307 | 7.2 | % | 10.7 | % | 922 | 13.0 | % | 28,208 | 10.9 | % | 384 | 5.6 | % | 2,900 | 2,020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| APMEA = Asia Pacific / Middle East / Africa | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Note that the figures in the preceding tables may not sum due to rounding; growth represents change from the comparable year ago period. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11 | |||||||
Footnote
The tables set forth the gross dollar volume (“GDV”), purchase volume, cash volume and the number of purchase transactions, cash transactions and cards on a regional and global basis for Mastercard™-branded cards. Growth rates over prior periods are provided for volume-based data.
Debit transactions on Maestro® and Cirrus®-branded cards and transactions involving brands other than Mastercard are not included in the preceding tables.
For purposes of the table: GDV represents purchase volume plus cash volume and includes the impact of balance transfers and convenience checks; “purchase volume” means the aggregate dollar amount of purchases made with Mastercard-branded cards for the relevant period; and “cash volume” means the aggregate dollar amount of cash disbursements and includes the impact of balance transfers and convenience checks obtained with Mastercard-branded cards for the relevant period. The number of cards includes virtual cards, which are Mastercard-branded payment accounts that do not generally have physical cards associated with them.
The Mastercard payment products are comprised of credit, charge, debit and prepaid programs, and data relating to each type of program is included in the tables. The tables include information with respect to transactions involving Mastercard-branded cards that are not switched by Mastercard and transactions for which Mastercard does not earn significant revenues.
Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which Mastercard volumes are reported. These exchange rates are calculated on a quarterly basis using the average exchange rate for each quarter. Mastercard reports period-over-period rates of change in purchase volume and cash volume on the basis of local currency information, in order to eliminate the impact of changes in the value of currencies against the U.S. dollar in calculating such rates of change.
The data set forth in the GDV, purchase volume, purchase transactions, cash volume and cash transactions columns is provided by Mastercard customers and is subject to verification by Mastercard and partial cross-checking against information provided by Mastercard’s transaction switching systems. The data set forth in the cards columns is provided by Mastercard customers and is subject to certain limited verification by Mastercard. A portion of the data set forth in the cards columns reflects the impact of routine portfolio changes among customers and other practices that may lead to over counting of the underlying data in certain circumstances. All data is subject to revision and amendment by Mastercard or Mastercard’s customers.
Performance information for prior periods can be found in the Investor Relations section of the Mastercard website at investor.mastercard.com.
| 12 | |||||||
FAQ
How did Mastercard (MA) perform financially in Q1 2026?
Mastercard reported strong Q1 2026 results, with net revenue of $8.4 billion, up 16% year over year. Net income reached $3.9 billion and diluted EPS was $4.35, reflecting higher payment network activity and expanding value-added services.
What were Mastercard (MA) non-GAAP earnings in Q1 2026?
On an adjusted basis, Mastercard’s Q1 2026 net income was $4.1 billion and adjusted diluted EPS was $4.60. These increased 20% and 23% versus Q1 2025, excluding equity investment gains and losses, special items and certain currency impacts.
How did Mastercard’s payment volumes and transactions grow in Q1 2026?
Mastercard’s gross dollar volume reached $2.7 trillion, up 7% in local currency. Cross-border volume grew 13% and switched transactions rose 9%, indicating increased global spending and transaction activity across the network.
What was Mastercard’s operating margin in Q1 2026?
Mastercard’s Q1 2026 GAAP operating margin was 58.4%, up from 57.2% a year earlier. On an adjusted basis, excluding special items, operating margin improved to 60.8%, reflecting strong revenue growth relative to operating expense increases.
How many cards has Mastercard issued as of March 31, 2026?
As of March 31, 2026, Mastercard’s customers had issued 3.7 billion Mastercard and Maestro-branded cards. This figure includes virtual cards and reflects the broad global reach of the company’s payment network across more than 220 countries and territories.
What were Mastercard’s key cash flow figures for Q1 2026?
Net cash provided by operating activities was $2.999 billion in Q1 2026. Net cash used in investing activities totaled $362 million, while financing activities used $5.005 billion, largely due to share repurchases and dividend payments.