Mastercard Incorporated (MA) Q1 2026 Financial Results Summary

Mastercard Incorporated (NYSE: MA) released its financial results for the first quarter of 2026 on April 30, 2026. Below is a summary of key metrics and highlights from the report.

Key Financial Metrics

• Net Income:
  • Q1 2026: $3.9 billion
  • Q1 2025: $3.3 billion
  • Growth: +18%
• Diluted Earnings Per Share (EPS):
  • Q1 2026: $4.35
  • Q1 2025: $3.59
  • Growth: +21%
• Adjusted Net Income:
  • Q1 2026: $4.1 billion
  • Q1 2025: $3.4 billion
  • Growth: +20%
• Adjusted Diluted EPS:
  • Q1 2026: $4.60
  • Q1 2025: $3.73
  • Growth: +23%
• Net Revenue:
  • Q1 2026: $8.4 billion
  • Q1 2025: $7.3 billion
  • Growth: +16% (or +12% on a currency-neutral basis)
• Operating Income:
  • Q1 2026: $4.9 billion
  • Q1 2025: $4.1 billion
  • Growth: +20%
• Operating Margin:
  • Q1 2026: 58.4%
  • Q1 2025: 57.2%
  • Increase: 1.2 percentage points (ppt)
• Effective Income Tax Rate:
  • Q1 2026: 19.3%
  • Q1 2025: 18.6%
  • Increase: 0.7 ppt

Business Drivers and Highlights

• Gross Dollar Volume: Up 7% on a local currency basis, reaching $2.7 trillion.
• Cross-Border Volume: Increased by 13% on a local currency basis.
• Switched Transactions: Grew by 9%.
• Value-Added Services and Solutions: Revenue increased by 22% or 18% on a currency-neutral basis, driven by services including security solutions, digital and authentication solutions, and consumer engagement services.
• Payment Network Net Revenue: Increased by 12%, or 8% on a currency-neutral basis, due to growth in gross dollar volume and payment network rebates, which rose by 23% (or 19% currency-neutral).
• Operating Expenses: Increased by 13% year-over-year, mainly attributed to higher general and administrative expenses, which included a restructuring charge.

Return of Capital to Shareholders

• During Q1 2026, Mastercard repurchased 7.8 million shares at a cost of $4.0 billion.
• Dividends paid in the same quarter totaled $777 million.
• As of April 27, 2026, the company repurchased 3.3 million shares for $1.7 billion, with an additional $11.7 billion remaining under approved share repurchase programs.

Additional Information

• As of March 31, 2026, Mastercard's customers had issued 3.7 billion Mastercard and Maestro-branded cards.
• Other income showed improvement, with a favorable variance of $23 million compared to Q1 2025, mainly due to government grant agreements.
• Net Cash Provided by Operating Activities: Q1 2026: $2.999 billion, compared to $2.380 billion in Q1 2025.

Conclusion

Mastercard's Q1 2026 financial results reflect strong growth across key metrics, driven by rising net revenues and contributions from value-added services. The company has also made significant investments in share buybacks and dividends, reinforcing its commitment to returning capital to shareholders.

Note: All amounts in the following tables are in millions.

Consolidated Statements of Operations

Description	2026	2025
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

Consolidated Balance Sheets

Description	March 31, 2026	December 31, 2025
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

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