Mastercard Volume Growth Cools as Revenue Holds 14%

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Mastercard Incorporated (MA) reported third-quarter net revenue of $9.8 billion, up 14% as reported and on a currency-neutral basis, matching the 14% as-reported growth of the second quarter. [1][2][3][4]

Gross dollar volume rose 7% on a local-currency basis to $3.0 trillion, after 8% growth in the second quarter. Purchase volume increased 9% in local currency, after 10% in the prior quarter. Cross-border volume rose 11% in local currency, after 12%. Switched transactions increased 9%, unchanged from the second quarter. [1][2][3][4]

Net income was $4.6 billion, or $5.28 a share, up 18% and 22% from a year earlier. Adjusted net income was $4.7 billion, and adjusted diluted earnings were $5.31 a share. [1][2][3][4]

Payment network net revenue increased 11%, as reported and currency-neutral. The company said the increase was attributable to gross dollar volume, cross-border volume, switched transactions and pricing, and included growth in rebates and incentives. Payment network rebates and incentives rose 18%, as reported and currency-neutral, primarily due to an increase in those key drivers as well as new and renewed deals. [5]

Value-added services and solutions net revenue increased 19%, as reported and currency-neutral. The company said the growth was driven primarily by underlying key drivers, strong demand across several services and pricing, and included a minimal decrease from acquisitions and dispositions. [5]

Operating expenses rose 11% as reported, after 10% as-reported growth in the second quarter. Excluding special items, adjusted operating expenses increased 12%, as reported and currency-neutral, including a 1 percentage-point increase from acquisitions and dispositions. The remaining increase was primarily due to higher general and administrative expenses. GAAP operating margin was 59.8%, down from 60.2% in the second quarter. Adjusted operating margin was 60.5%, down from 61.1%. [2][5][4]

Other income (expense) was unfavorable by $59 million versus the year-ago period, primarily due to interest expense on debt outstanding and a net loss in the current year versus a net gain in the prior year on equity investments, partially offset by government grant agreements. Excluding equity-investment gains and losses, adjusted other income (expense) was unfavorable by $12 million. [5]

The effective income tax rate was 19.4%, versus 21.5% a year earlier. The adjusted effective tax rate was 20.1%. The company said both rates were lower due to higher net discrete tax benefits and other tax impacts in 2026. [5][6]

A $74 million pre-tax litigation charge in the third quarter related primarily to settlements with merchants who opted out of the U.S. merchant class litigation. [7]

As of September 30, 2026, customers had issued 3.8 billion Mastercard and Maestro-branded cards. [6]

During the third quarter, Mastercard repurchased 5.3 million shares at a cost of $3.0 billion and paid $763 million in dividends. Quarter-to-date through October 26, the company repurchased 1.1 million shares at a cost of $0.6 billion, leaving $4.9 billion remaining under approved share repurchase programs. [8]

Chief Executive Michael Miebach said the quarter delivered 14% net revenue growth and pointed to more Mastercard credentials in more hands, Agentic Commerce, and a new Global Money Platform through BVNK. [1]

Citations

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  1,MA,ex_99_1,2026-10-29,0001141391-26-000122,filing
  2,MA,ex_99_1,2026-10-29,0001141391-26-000122,filing
  3,MA,ex_99_1,2026-10-29,0001141391-26-000122,filing
  4,MA,ex_99_1,2026-10-29,0001141391-26-000122,filing
  5,MA,ex_99_1,2026-10-29,0001141391-26-000122,filing
  6,MA,ex_99_1,2026-10-29,0001141391-26-000122,filing
  7,MA,ex_99_1,2026-10-29,0001141391-26-000122,filing
  8,MA,ex_99_1,2026-10-29,0001141391-26-000122,filing