Mastercard reported a strong third quarter, with net revenue rising 14% to $9.8 billion and diluted earnings per share increasing 22% to $5.28. Growth was also 14% on a currency-neutral basis, while payment volumes rose at a slower pace.
The company also reported higher adjusted earnings and an improvement in operating margins. CEO Michael Miebach highlighted the company’s work on agentic commerce and its Global Money Platform, which he linked to BVNK.
Key details
- Revenue and earnings: Net revenue was $9.8 billion, up 14% from $8.6 billion a year earlier. Net income rose 18% to $4.6 billion. Diluted EPS increased 22%, to $5.28 from $4.34.
- Adjusted results: Adjusted net income reached $4.7 billion, up 17%, and adjusted diluted EPS rose 21% to $5.31. These figures are close to the reported results, though adjusted EPS was 3 cents higher than GAAP EPS.
- Margins and costs: Operating expenses increased 11% to $3.9 billion, below the 14% increase in revenue. Operating income rose 16% to $5.9 billion, and the operating margin expanded 0.9 percentage point to 59.8%. On an adjusted basis, the margin rose 0.7 point to 60.5%.
- Payment activity: Gross dollar volume increased 7% and purchase volume rose 9%, both measured in local currencies.
- Tax rate: The effective income tax rate fell to 19.4% from 21.5%. The adjusted rate was 20.1%, compared with 21.4% a year earlier.
- Strategic priorities: Miebach cited the company’s global reach and growing base of Mastercard credentials, and pointed to work on agentic commerce and the Global Money Platform through BVNK.
What the results show
Revenue grew faster than operating expenses, contributing to higher operating income and wider reported and adjusted margins. Mastercard’s payment volumes grew more slowly than revenue, while earnings per share grew faster than net income.