Mastercard's fourth quarter results aligned with Wall Street’s revenue expectations while delivering a notable non-GAAP earnings outperformance. Management credited the company’s diversified global footprint and ongoing expansion of value-added services as the key drivers behind the quarter’s growth. CEO Michael Miebach highlighted new issuing deals across the U.S., Europe, and emerging markets, citing strengthened partnerships, especially with Capital One and Scotiabank. He also pointed to strong demand for digital security and analytics offerings, as well as continued volume growth in cross-border payments and commercial card usage.
Is now the time to buy MA? Find out in our full research report (it’s free for active Edge members).
Mastercard (MA) Q4 CY2025 Highlights:
- Revenue: $8.81 billion vs analyst estimates of $8.77 billion (17.6% year-on-year growth, in line)
- Adjusted EPS: $4.76 vs analyst estimates of $4.24 (12.3% beat)
- Adjusted EBITDA: $5.38 billion vs analyst estimates of $5.24 billion (61.1% margin, 2.8% beat)
- Operating Margin: 55.8%, up from 52.6% in the same quarter last year
- Market Capitalization: $494.7 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Mastercard’s Q4 Earnings Call
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William Nance (Goldman Sachs) asked about the impact of the Capital One renegotiation on Mastercard’s credit volumes. CEO Michael Miebach stressed the value of the extended partnership and the importance of continued investment to differentiate Mastercard’s offering.
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Sanjay Sakhrani (KBW) inquired about the Credit Card Competition Act and potential volume migration from Capital One. Miebach noted intensified industry opposition to the Act and emphasized Mastercard’s focus on network value and security.
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Adam Frisch (Evercore ISI) questioned how a potential credit rate cap could affect the industry. Miebach explained that such a cap might restrict credit access for vulnerable consumers and that Mastercard is actively engaged in industry discussions about affordability.
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Craig Maurer (ST Partners) sought clarification on the durability of value-added service growth versus volume growth. CFO Sachin Mehra reiterated the strong, broad-based nature of value-added services growth, linked closely to network expansion and innovation.
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Tien-Tsin Huang (JPMorgan) asked about the renewal pipeline and competitive intensity in 2026. Mehra described the pipeline as robust and highlighted Mastercard’s focus on winning high-value, cross-border, and service-rich deals to support incremental issuer growth.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will closely monitor (1) the pace of adoption for AI-powered agentic commerce products like AgentPay, (2) Mastercard’s ability to capture incremental share in commercial and cross-border payments through new partnerships and product launches, and (3) the company’s execution on restructuring initiatives aimed at freeing up resources for strategic investments. Shifts in regulatory policy and consumer spending trends will also remain important markers.
Mastercard currently trades at $549.78, up from $521.37 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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