Mastercard Posts Adjusted Earnings of $5.31 a Share and Revenue of $9.8 Billion in Third Quarter
Key Facts
Mastercard reported revenue of $9.8 billion on October 29, 2026, in the third quarter, up 14% from $8.6 billion in the same period of 2025, while net income rose to $4.6 billion from $3.9 billion. Diluted earnings per share were $5.28 under accounting standards, up 22% year over year, while adjusted earnings reached $5.31 a share, up 21% from $4.38 a year earlier. Adjusted earnings exceeded the average analyst estimate of $5.16, according to LSEG data cited by Reuters. The results reflect growth in the company’s network and services business, with consumer and commercial spending remaining at levels management described as healthy. Adjusted operating expenses also rose 12% to $3.9 billion from $3.5 billion a year earlier, with the company attributing the increase mainly to general and administrative expenses.
Payment network revenue grew 11%, while gross dollar volume rose 7% on a local-currency basis to $3.0 trillion. Cross-border volume increased 11%, and the number of transactions processed by the network rose 9% during the quarter. Mastercard said revenue from services and value-added solutions climbed 19% on a currency-neutral basis, driven by demand for several of its services and by pricing. Areas of demand included customer acquisition and engagement solutions, business and marketing insights, security solutions, digital services and authentication. Adjusted operating margin rose to 60.5% from 59.8% in the third quarter of 2025, an increase of 0.7 percentage points, despite adjusted operating expenses growing faster than revenue.
Network usage indicators showed an expansion in digital payments: contactless payments accounted for 81% of in-person purchase transactions processed by the network, up five percentage points from the same period a year earlier. As of September 30, 2026, the company’s customers had issued 3.8 billion cards bearing the Mastercard and Maestro brands. Chief Executive Michael Miebach said the company was developing agentic commerce alongside its new Global Money Platform through BVNK. Miebach framed these initiatives as part of the company’s efforts to develop how people pay, manage money and convert between currencies. In its quarterly results, the company said growth in its services was tied to demand for solutions and pricing, while payment activity and volume remained key business drivers.
The results came as consumer spending continued despite cost-of-living pressures. Chief Financial Officer Ling Hai said some of this year’s spending growth came from higher fuel prices, while a stable labor market and strong wage growth helped mitigate the impact of rising living costs. Reuters reported the company said consumer and commercial spending was healthy during the third quarter and remained so into early in the fourth quarter, and that it saw resilience among consumers. The company described the business environment this way: "Our business fundamentals were strong." This places payment volume growth in the context of spending that continued to hold up, with management noting that higher fuel prices also contributed to some of the increase recorded this year.
Mastercard shares rose more than 4% in afternoon trading on October 29, according to Reuters, while Visa and American Express shares each climbed about 2%. The share moves followed the results announcement and adjusted earnings exceeding analyst estimates. Reuters did not provide source-backed closing prices in the information supplied, so the comparison is limited to percentage moves during afternoon trading. Operating figures showed that growth in network revenue and cross-border payment volume came alongside faster growth in revenue from value-added services. The results also showed an increase in adjusted operating margin despite higher adjusted operating expenses.
Management said it expects 2026 revenue growth to remain at the high end of the low-teens range, on a currency-neutral basis and excluding the impact of inorganic activity. It also expects fourth-quarter revenue growth to come in at the high end of the same range, year over year and on a currency-neutral basis. By contrast, the company expects foreign exchange to subtract about one percentage point from fourth-quarter revenue, due to the dollar’s strength during the previous quarter. Mastercard said the impact of acquisitions and divestitures in the fourth quarter would be limited. Under the company’s guidance, fourth-quarter results will be the first test of the gap between currency-neutral business growth and the impact it expects from foreign-exchange moves.