Mastercard (NYSE: MA) reported fiscal third-quarter results on Thursday. The company reported quarterly net revenues of $8.60 billion, up 17% year-over-year and 15% Y/Y on a neutral currency basis, beating the analyst consensus estimate of $8.53 billion.
Adjusted EPS rose 13% Y/Y to $4.38, exceeding the analyst consensus estimate of $4.32. Visa Inc (NYSE:V) reported upbeat quarterly results this week, bearing testimony to resilient consumer spending. American Express Co (NYSE:AXP) also posted record quarterly revenue, driven by its wealthy customers.
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Mastercard’s payment network net revenue rose 13% year-over-year (Y/Y), both as reported and on a currency-neutral basis, led by growth in gross dollar volume (+9% Y/Y), cross-border volume (+15% Y/Y), and switched transactions (+10% Y/Y).
Value-added services and solutions net revenue rose 25% and 22% on a currency-neutral basis, driven by acquisition, growth in its underlying drivers, security and digital and authentication solutions, consumer acquisition and engagement services, business and market insights, and pricing.
Cross-border volume, which indicates travel demand by tracking spending on cards outside their country of issue, increased by 15% in the same period.
The adjusted operating margin expanded 50 basis points Y/Y to 59.8%. Net income climbed 18% on a currency-neutral basis to $3.9 billion, while the adjusted net income improved by 8% on a currency-neutral basis to $4.0 billion.
As of Sept. 30, 2025, the company had issued 3.6 billion Mastercard and Maestro-branded cards.
During the quarter, Mastercard repurchased 5.8 million shares for $3.3 billion and paid $687 million in dividends. As of Sept. 30, 2025, cash and cash equivalents stood at $11.13 billion.
Mastercard CEO Michael Miebach said the company achieved strong quarterly results supported by steady consumer and business spending and strong demand for its value-added services. He noted that these services and solutions grew 25% year-over-year, driven by new initiatives such as the Mastercard Commerce Media network, advanced cyber threat intelligence for payments, and expanded agentic commerce capabilities.
Q4 and FY25 Outlook: Mastercard expects net revenue growth in the high teens for the fourth quarter, versus the $8.71 billion analyst consensus estimate.
The company reiterated high-end mid-teens revenue growth for fiscal 2025 versus the $32.57 billion analyst consensus estimate.
However, headwinds loom in the form of labor-market weakness and persistent inflation, raising concerns about President Donald Trump's trade and immigration policies.
Price Action: MA stock is up 0.82% at $559.21 at the last check on Thursday.
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