Mastercard Inc. (NYSE: MA) stock gained on Thursday after it reported fiscal fourth-quarter results.
The company reported quarterly net revenues of $8.81 billion, up 18% year-over-year and 15% Y/Y on a neutral currency basis, beating the analyst consensus estimate of $8.79 billion.
Adjusted EPS rose 25% Y/Y to $4.76, exceeding the analyst consensus estimate of $4.25.
The Gross dollar volume increased by 7% in local currency, reaching $2.8 trillion. Cross-border volume rose by 14% on a local currency basis.
Segment Performance
Mastercard's payment network net revenue rose 12% year-over-year on reported and 9% on a currency-neutral basis, led by growth in gross dollar volume (+7% Y/Y), cross-border volume (+14% Y/Y), and switched transactions (+10% Y/Y).
Value-added services and solutions net revenue rose 26% and 22% on a currency-neutral basis. This includes a 3 percentage point increase from acquisitions.
The remaining increase was driven primarily by growth in its underlying drivers, digital and authentication solutions, security solutions, consumer acquisition and engagement services, business and market insights, and pricing.
Profit And Margins
The operating margin increased by 320 basis points Y/Y to 55.8%. The adjusted operating margin expanded 140 basis points Y/Y to 57.7%.
Net income climbed 17% on a currency-neutral basis to $4.1 billion, while the adjusted net income improved by 17% on a currency-neutral basis to $4.3 billion.
As of December 31, 2025, the company had issued 3.7 billion Mastercard and Maestro-branded cards.
During the quarter, Mastercard repurchased 6.4 million shares for $3.6 billion and paid $684 million in dividends.
As of December 31, 2025, cash and cash equivalents stood at $10.57 billion.
CEO Michael Miebach said the company continues to execute effectively, pointing to momentum from programs such as Apple Inc. (NASDAQ:AAPL) Apple Card and strong growth in value-added services and solutions, which increased 23%, or 21% on a currency-neutral basis.
Miebach noted that a supportive macroeconomic environment and healthy consumer and business spending contributed to results.
Q1 And FY26 Outlook
Mastercard expects net revenue growth in the low teens for the first quarter, versus the $8.3 billion analyst consensus estimate.
The company expects high-end of low double-digit revenue growth for fiscal 2026 versus the $36.8 billion analyst consensus estimate.
MA Price Action: Mastercard shares were up 2.66% at $535.24 at the time of publication on Thursday, according to Benzinga Pro data.
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