| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 19 | 34.3x | 17.3x | Bottom tier | |
Growth | 76 | 16.0% | 7.1% | Top tier | |
Quality | 100 | — | — | Top tier | |
Safety | 16 | — | — | Bottom tier | |
Capital Return | 83 | 0.54% | 0.06% | Top tier | |
Momentum | 85 | -0.9% | -1.5% | Top tier | |
Sentiment | 67 | 25 | 3 | Top tier |
10-year US Treasury yield 5.13% as of 2026-10-21. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Mastercard Incorporated operates a payments network connecting card issuers and merchants, generating revenue from domestic and cross-border payment volumes and transaction processing, as well as security, identity verification, analytics, and marketing services. In quarter 2 of fiscal year 2026 (ended 2026-06-30), the number of Mastercard and Maestro cards issued worldwide reached 3.7 billion, and the proportion of transactions routed through the company's processing network reached 72%. The company links network expansion to sales of additional services, with approximately 60% of value-added services revenue connected to its network.
Revenue in quarter 2 of fiscal year 2026 was approximately 9.3 billion dollars, up 14.1% compared with the same quarter of the previous year, with net income of 4.4 billion dollars and diluted earnings per share of 4.97 dollars. The operating margin rose to 60.2% from 58.7% in quarter 2 of fiscal year 2025, an improvement of 1.5 percentage points. According to EL7 data, operating cash flow in quarter 2 of fiscal year 2026 was approximately 3.8 billion dollars versus 4.6 billion dollars in quarter 2 of fiscal year 2025; therefore, the improvement in earnings was not accompanied by a similar improvement in operating cash flow.
Within the business mix, payment network revenue grew 8% and value-added services revenue grew 18% in quarter 2 of fiscal year 2026 compared with the same quarter of the previous year, on a currency-neutral basis. Cross-border payment volumes rose 12% and transactions processed through the network rose 9% over the same annual comparison. Mastercard's model thus combines growth in network usage with increased monetization of its data and services, while its announced expansions during September and October 2026 focus on stablecoins and AI-driven commerce.
Q2 FY2026
When: 2026-10-29
Annual revenue growth at the 14.1% threshold
Operating margin at the 60.2% threshold
In the valuation data available through 2026-10-19, the median target of 12 analysts is 670 dollars, within a range of 597 dollars to 740 dollars, a method that reflects growth expectations and is inherently inclined toward optimism. The industry-multiple value is 194 dollars, within a range of 138 dollars to 323 dollars, based on earnings for the last 12 months through 2026-06-30 and a median multiple of 10.7 across 47 companies. This is a low-confidence indicative value that measures the company as its peers are valued. The 2 methods do not converge, as analyst targets exceed the industry-multiple value, and this difference reflects the weight given to Mastercard's growth expectations versus pricing its earnings at the peer group's multiple. Within the industry, the company ranked 79 out of 85 on EL7's valuation factor with a score of 10 out of 100 for the period ended 2026-06-30, while BMO Capital raised its target on 2026-10-15 to 665 dollars from 630 dollars.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
Mastercard generates revenue from its domestic and cross-border payment network and transaction processing, as well as security, identity, analytics, and marketing services. In quarter 2 of fiscal year 2026 (ended 2026-06-30), network revenue grew 8% and value-added services revenue grew 18% compared with the same quarter of the previous year on a currency-neutral basis. Approximately 60% of services revenue is linked to the network, connecting transaction growth to the distribution of services such as Mastercard Threat Intelligence.
Net income in quarter 2 of fiscal year 2026 (ended 2026-06-30) was approximately 4.4 billion dollars, versus 3.7 billion dollars in quarter 2 of fiscal year 2025, and the operating margin rose to 60.2% from 58.7%. However, operating cash flow, according to EL7 data, was 3.8 billion dollars in quarter 2 of fiscal year 2026 versus 4.6 billion dollars in quarter 2 of fiscal year 2025. This comparison shows that improved accounting earnings were not accompanied by an increase in operating cash flow during the same quarter. The diluted share count also declined to 883.0 million shares from 909.0 million shares over the same annual comparison, supporting earnings per share.
Automated analysis for informational purposes only — not investment advice.
Value-added services revenue growth at the 18% threshold
Mastercard aims to use BVNK to enable customers to send, receive, hold, and convert assets, alongside connecting different settlement systems. The acquisition was valued at up to 1.8 billion dollars in a 2026-10-12 report, while a 2026-10-17 report stated that the BVNK platform was being used for corporate funding channels as part of a USDC payments expansion covering 200 countries. On 2026-10-19, the Stablecoin Security service was announced to screen for fraud and sanctions risks, with the service launching in North America and plans for global expansion by 2027. As for the initial financial impact, management described it in guidance for quarter 3 of fiscal year 2026 as limited for revenue growth, with inorganic activities adding approximately 0.5 percentage points to expense growth.
The 2026-07-30 call showed continued relationship wins and renewals, including Chase Freedom Flex and Banamex portfolios representing approximately 19 million cards. However, the Capital One portfolio migration affected U.S. debit volume, which grew 1% in quarter 2 of fiscal year 2026 (ended 2026-06-30) compared with the same quarter of the previous year, versus 8% excluding the migration. Management also explained that it stopped competing for the Lloyds credit portfolio when the terms no longer delivered the required economic returns. Mastercard's position therefore combines the strength of its distribution network with the possibility of losing volumes when portfolio-retention terms conflict with profitability.
In the valuation data available through 2026-10-19, the median target of 12 analysts is 670 dollars, while the indicative industry-multiple value is 194 dollars. Analyst targets reflect Mastercard's growth expectations, while the second method applies a median multiple of 10.7 across 47 companies to earnings for the last 12 months through 2026-06-30. The industry-multiple method has low confidence, while analyst targets are inherently inclined toward optimism. The divergence reflects the difference in what the 2 methods measure and does not make either an agreed definitive value.