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Mastercard Incorporated MA reported third-quarter 2025 adjusted earnings of $4.38 per share, which beat the Zacks Consensus Estimate by 1.6%. The bottom line advanced 13% year over year.
Net revenues of $8.6 billion rose 17% year over year. The top line surpassed the consensus mark by 1.2%.
The quarterly results benefited from strong cross-border volume growth, increased switched transactions and robust demand for value-added services like digital authentication and customer engagement, aided by recent acquisitions. However, the upside was partly offset by higher payment network rebates from renewed deals and an escalating operating expense level.
Mastercard Incorporated price-consensus-eps-surprise-chart | Mastercard Incorporated Quote
Gross dollar volume or GDV (representing the aggregated dollar amount of purchases made and cash disbursements obtained from Mastercard-branded cards) amounted to $2.7 trillion, which grew 9% on a local-currency basis. The metric marginally missed the Zacks Consensus Estimate.
Cross-border volumes (a key measure that tracks spending on cards beyond the issuing country) improved 15% on a local currency basis in the quarter under review. Switched transactions, which indicate the number of times a company’s products have been used to facilitate transactions, rose 10% year over year to 45.4 billion. The metric beat the consensus mark of 45 billion.
Value-added services and solutions’ net revenues of $3.4 billion climbed 25% year over year and came higher than our model estimate of $3.3 billion. The year-over-year improvement stemmed from buyouts and the strong performance of security and digital authentication solutions, as well as customer acquisition and engagement services.
Payment network rebates and incentives escalated 16% year over year as a result of new and renewed deals. Mastercard’s clients issued 3.6 billion Mastercard and Maestro-branded cards as of Sept. 30, 2025.
Adjusted operating expenses of $3.5 billion increased 15% year over year due to acquisitions and general and administrative expenses.
Adjusted operating income advanced 18% year over year to $5.1 billion, higher than our model estimate of $5 billion. The adjusted operating margin of 59.8% improved 50 basis points year over year.
Mastercard exited the third quarter with cash and cash equivalents of $10.3 billion, which rose 22.2% from the 2024-end level. Total assets of $53.3 billion increased 10.8% from the figure at 2024-end.
Long-term debt amounted to $19 billion, up 8.6% from the figure as of Dec. 31, 2024.
Total equity of $7.9 billion advanced 21.6% from the 2024-end level.
Mastercard generated net cash from operations of $12.6 billion in the first nine months of 2025, which climbed 27.1% from the prior-year comparable period.
Mastercard bought back 5.8 million shares for $3.3 billion in the third quarter. Over the period between Oct. 1 and Oct. 27, it bought back another 2.1 million shares for $1.2 billion, thereby leaving a buyback capacity of $5.8 billion.
MA paid out dividends worth $687 million during the quarter under review.
Management projects adjusted net revenues to register high teens growth on a year-over-year basis in the fourth quarter of 2025, while adjusted operating expenses are also anticipated to record high teens growth.
Management still estimates adjusted net revenues to witness high-end of mid-teens growth in 2025 from the 2024 figure. Adjusted operating expenses are reiterated to witness high-end of mid-teens growth from the year-ago figure.
Mastercard currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Of the other Business Services sector industry players that have reported September-quarter results so far, the bottom-line results of Visa Inc. V, The Western Union Company WU and FTI Consulting, Inc. FCN beat the respective Zacks Consensus Estimate.
Visa reported fourth-quarter fiscal 2025 earnings per share (EPS) of $2.98, which beat the Zacks Consensus Estimate of $2.97. The bottom line increased 10% year over year. Net revenues of $10.7 billion improved 12% year over year. The top line beat the consensus mark by 1%. Visa's payments volume increased 9% year over year on a constant-dollar basis in the fiscal fourth quarter. Processed transactions (implying transactions processed by Visa) grew 10% year over year to 67.7 billion.
On a constant-dollar basis, the cross-border volume of Visa rose 12% year over year. Service revenues (depending on the payment volume in the previous quarter) increased 10% year over year to $4.6 billion in the September quarter. Data processing revenues of $5.4 billion grew 17% year over year. International transaction revenues rose 10% year over year to $3.8 billion in the fiscal fourth quarter. Other revenues were $1.2 billion, which climbed 21% year over year
Western Union’s third-quarter 2025 adjusted earnings per share of 47 cents surpassed the Zacks Consensus Estimate by 9.3%. The bottom line grew 2.2% year over year. Total revenues remained flat on a reported basis at $1 billion. The top line beat the consensus mark by 1.2%. The adjusted operating margin of 20% improved 100 basis points (bps) year over year. Operating income advanced 22% year over year to $201.9 million.
The Consumer Money Transfer segment recorded revenues of $878 million in the third quarter, which slipped 6% year over year. Operating income declined 9% year over year to $172.2 million. Transactions within the CMT segment on an adjusted basis, excluding Iraq, dipped 2% year over year. The Consumer Services segment’s revenues climbed 49% year over year on a reported and an adjusted basis to $154.6 million in the quarter under review. Operating income totaled $34 million, which increased nearly fourfold year over year.
FTI Consulting reported third-quarter 2025 adjusted EPS came in at $2.60, which beat the Zacks Consensus Estimate by 34.7% and increased 40.5% year over year. Total revenues of $956.2 million beat the consensus estimate by 1.4% but fell 3.3% year over year. Segment-wise, Technology revenues decreased 14.8% year over year to $94.08 million. Economic Consulting revenues dropped 22% year over year to $173.09 million.
Corporate Finance & Restructuring revenues gained 18.6% year over year to $379.2 million. Strategic Communications revenues increased 20.8% year over year to $405 million. Forensic and Litigation Consulting revenues rose 15.4% year over year to $195 million. Adjusted EBITDA came in at $130.6 million, up 26.8% on a year-over-year basis. The adjusted EBITDA margin gained 260 basis points year over year to 13.7%.
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This article originally published on Zacks Investment Research (zacks.com).
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