Mastercard (NYSE: MA) reported fiscal second-quarter results on Thursday. The company reported quarterly net revenues of $8.13 billion, up 17% year-over-year and 16% Y/Y on a neutral currency basis, beating the analyst consensus estimate of $7.95 billion.
Adjusted EPS rose 16% Y/Y to $4.15, exceeding the analyst consensus estimate of $4.02.
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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 23% and 22% on a currency-neutral basis, driven by demand for its consumer acquisition and engagement services, as well as business and market insight services, the scaling of its security, digital, and authentication solutions, and pricing adjustments.
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 year-over-year to 59.9%. Net income climbed 13% on a currency-neutral basis to $3.7 billion, while the adjusted net income improved by 12% on a currency-neutral basis to $3.8 billion.
As of June 30, 2025, the company had issued 3.6 billion Mastercard and Maestro-branded cards.
During the quarter, Mastercard repurchased 4.2 million shares for $2.3 billion and paid $691 million in dividends. As of June 30, 2025, cash and cash equivalents stood at $9.37 billion.
Q3 and FY25 Outlook: Mastercard expects net revenue growth in the high teens for the third quarter, versus the $8.29 billion analyst consensus estimate. The company now expects high-end mid-teens revenue growth (prior low teen-digit revenue growth) for fiscal 2025 versus the $31.96 billion analyst consensus estimate.
Price Action: MA stock is up 2.88% at $575.22 at the last check on Thursday.
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