Mastercard (MA) Q1 2026 earnings summary

Executive summary

• Net revenue for Q1 2026 reached $8.4 billion, up 16% year-over-year, or 12% on a currency-neutral basis, driven by strong network and value-added services growth.

• Adjusted net income grew 20% to $4.1 billion, with adjusted diluted EPS up 23% to $4.60; reported net income rose 18% to $3.9 billion, and diluted EPS was $4.35.

• Gross dollar volume increased 7% globally, with U.S. up 4% and international up 9%; switched transactions rose 9% and the number of cards increased 5%.

• The macroeconomic environment remains generally supportive, with healthy consumer and business spending, though geopolitical tensions, especially in the Middle East, have pressured cross-border travel.

• Strategic focus remains on expanding global reach, technology innovation, and differentiated value-added services, including AI-driven solutions and digital asset integration.

Financial highlights

• Operating income for Q1 2026 was $4.9 billion, up 18% year-over-year; adjusted operating income rose 19% to $5.1 billion, with an adjusted operating margin of 60.8%.

• Payment network revenue increased 12% year-over-year, while value-added services and solutions revenue grew 22% (18% currency-neutral).

• Domestic assessments increased 9%, cross-border assessments 23%, and transaction processing 20%.

• EPS reached $4.60, including a $0.10 benefit from share repurchases; $4 billion in stock repurchased in Q1, with an additional $1.7 billion through April 27, 2026.

• Net cash provided by operating activities was $3.0 billion, up $619 million from Q1 2025.

Outlook and guidance

• Q2 2026 net revenue growth expected at the low end of low double-digits (currency-neutral, excluding inorganic activity), with the largest headwinds from the Middle East conflict.

• Full-year 2026 net revenue growth anticipated at the high end of low double-digits to low teens (currency-neutral, excluding inorganic activity), with a 1.5 ppt FX tailwind.

• Operating expense growth for Q2 and full year expected in the low double-digits range; non-GAAP tax rate projected at 20%-21%.

• Guidance assumes the Middle East conflict ends in Q2, with recovery in cross-border travel metrics in the second half.

• Management highlighted ongoing investments in agentic commerce and stablecoin solutions, including the planned acquisition of BVNK.