Mastercard Inc.

MA
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$8.4B
Q1 2026 · +15.8% YoY
TTM ROIC
42.5%
FY2025 · NOPAT / Invested Capital (NOPAT = Operating Income × (1 - effective tax rate); Invested Capital = Total Assets less estimated non-interest-bearing current liabilities) · WACC ~10.2% · Moat spread +32.3pp

Financial Snapshot


ticker: MA step: 04 generated: 2026-05-11 source: quick-research

Mastercard Incorporated (MA) — Financial Snapshot

Income Statement Summary

Metric FY2023 FY2024 FY2025 YoY (FY25)
Net Revenue $25.1B $28.2B $32.8B +16%
Operating Margin 55.8% 55.3% 57.6% +230 bps
Operating Income $14.0B $15.6B $18.9B +21%
Net Income $11.2B $12.9B $15.0B +16%
EPS (diluted) $11.83 $13.89 $16.52 +19%
Adjusted EPS $17.01 +15%

Volume & Transaction Detail (FY2025)

Metric FY2025 YoY
Gross Dollar Volume (GDV) $10.6T +15%
Switched Transactions 175.5B +10%
Cross-Border Volume n/a +9–14%*
Value-Added Services revenue growth +22–23%

*Q4 2025 cross-border up 15%; full-year 9% reflects mix of Q1–Q4.

Cash Flow & Balance Sheet

Metric FY2025
Operating Cash Flow $17.6B
Free Cash Flow $17.2B (+21% YoY)
Capital Returned to Shareholders $17.6B
Share Repurchases $14.5B
Dividends Paid $2.8B
New Buyback Authorization Remaining $11.7B+
Q4 2025 Dividend Hike $0.76 → $0.87 (+14.5%)
Free Cash Flow Margin ~52%
Cash & Investments ~$8B

Key Ratios (approximate)

  • P/E: ~34x | EV/EBITDA: ~27x | FCF Yield: ~3.4%
  • Revenue Growth (FY25): +16% | FCF Margin: ~52%
  • Operating Margin: 57.6% (one of the highest among mega-caps)
  • Capital Return Yield: ~3.4% (mostly buybacks)
  • Dividend Yield: ~0.6% (low cash yield but growing 12–14%/year)

Growth Profile

Mastercard delivered exceptional FY2025 — net revenue +16%, EPS +19%, operating margin expanded 230 bps to 57.6%, and FCF grew 21%. The growth algorithm has three reinforcing components: (1) Payment Network scaling with global GPV (+15%) and cross-border (+9–15%, structurally faster); (2) Value-Added Services growing 22%+, now ~38% of revenue and ~50%+ of incremental growth; (3) Operating leverage as incremental volume drops ~60% to operating income. The $1.8B BVNK acquisition (stablecoin) and ongoing partnerships position Mastercard for the next 10-year wave (stablecoin/agentic payments) rather than fighting against disruptors.

Forward Estimates

Consensus FY2026 revenue: ~$36–37B (+11–13%); FY2026 adjusted EPS: ~$19.50–20.00 (+15–18%). Bull case: cross-border growth sustains 12%+ as travel + B2B normalize; Value-Added Services compounds 20%+; stablecoin partnerships add incremental volume. Bear case: real-time payment rails (FedNow, UPI, Pix, SEPA Instant) compress card volume growth in domestic markets; FX/macroeconomic headwinds impact cross-border travel; regulatory pressure on interchange in EU/UK/Australia.

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $MA.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/ma/financials/md · → thesis · → memo