Mastercard (MA) Q4 2025 earnings summary

Executive summary

• Q4 2025 net revenue reached $8.8B, up 18% year-over-year (15% currency-neutral), with value-added services and solutions up 22%-26% year-over-year on a non-GAAP currency-neutral basis.

• Adjusted operating income grew 21% to $5.1B, and adjusted net income rose 22% to $4.3B; adjusted EPS increased 25% to $4.76.

• Strategic review led to targeted reductions, a planned restructuring, and reinvestment to enhance focus and agility.

• Hundreds of new issuing deals and expansions were secured globally, including major partnerships and exclusive network agreements with key partners.

• Continued innovation in digital payments, agentic commerce, and stablecoin settlement, with new product launches and expanded capabilities.

Financial highlights

• Q4 2025 net revenue up 18% (15% currency-neutral), operating income up 17%-25%, net income and EPS up 17%-25% year-over-year.

• EPS reached $4.76, including a $0.10 benefit from share repurchases; GAAP diluted EPS was $4.52.

• Gross dollar volume (GDV) increased 7% globally; U.S. GDV up 4%, international GDV up 9%.

• Cross-border volume rose 14% year-over-year, with strong growth in both travel and non-travel segments.

• Switched transactions grew 10% year-over-year to 46.5 billion in Q4 2025; total cards in circulation increased 6% to 3.7B.

• Value-added services and solutions net revenue up 22%-26% in Q4; full-year growth of 21%-23% (18%-21% excluding acquisitions).

• Operating expenses increased 12%-14%, with a 5 ppt impact from acquisitions; government grants provided a 5.5 ppt benefit.

• $3.6B in stock repurchased during the quarter, with an additional $715M through January 2026.

Outlook and guidance

• 2026 net revenue expected to grow at the high end of a low double digits range on a currency-neutral basis, excluding inorganic activity.

• Operating expense growth projected at the low end of a low double digits range, with a 0.5-1 ppt FX headwind.

• Q1 2026 net revenue growth expected at the low end of a low double digits range, with a 3.5-4 ppt FX tailwind.

• One-time restructuring charge of ~$200M to be recorded in Q1 2026, impacting about 4% of full-time employees, with anticipated reinvestment of savings.

• Non-GAAP tax rate forecasted at 20%-21% for 2026, and 19%-20% for Q1.