MA US S&P 500Russell 1000 Earnings call

Mastercard (MA) · Q2 2026 results and valuation

Share price: $660.73 · 2026-11-11

Mastercard is a technology company in the global payments industry that operates a payment network to facilitate electronic transactions. The company provides payment solutions, security services, and data insights to consumers, merchants, financial institutions, and governments worldwide. It operates across global markets by offering products for both consumer and commercial payment flows. Source: 10-K annual report (2026-02-11)

Results Q2 2026 vs Q1 2026 · previous quarter · published 30 Jul 2026 and 30 Apr 2026

Net income up 13.0% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.

1 · Numbers

+13.0%

Net income vs Q1 2026

Net income 4.39B vs 3.88B

Revenue +10.5%

Against the same quarter last year (Q2 2025) it is +18.6%, so it is not just seasonal.

Why Against the same quarter last year (+18.6%), net income increased primarily due to strong operating income growth, which was driven by growth in underlying drivers including demand for security solutions, consumer acquisition, and pricing.

2 · How management spoke

Typical

More upbeat than 59% of company calls

Answers to analysts: typical, in line with the script.

Similar to last call.

3 · What stood out

Mastercard won several hundred flips and deal expansions in the first half of 2026, expected to drive trillions of dollars in incremental volume over the next decade.

Valuation

Is Mastercard undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 13.8% growth a year (3-year revenue growth), the model's fair value is $579.11 a share — the stock trades 14% above it. Today's price assumes 15.6% growth a year.

Current price

$660.73

close of 2026-11-11

Market implies growth of i

+15.6% for 10 yrs

Fair value / share

$579.11

Buy below

$434.34

Price vs fair value

Overvalued 14%

Price vs buy-below price

Overvalued 52%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Read between the lines

Key theme

Net revenues rose 12%, adjusted net income increased 16%, and value-added services net revenue grew 18% on a year-over-year basis.

Source quote
“Net revenues were above our expectations, up 12%, adjusted net income up 16% and value-added services net revenue up 18%, all year-over-year on a non-GAAP currency-neutral basis.”
Figure

Net revenue increased 12% due to growth in the payment network and value-added services and solutions with minimal impact from dispositions.

Source quote
“Net revenue was up 12%, reflecting continued growth in our payment network and our value-added services and solutions with minimal impact from dispositions.”
Key theme

Ling Hai will assume the role of CFO, bringing his deep knowledge of the business, products, and industry to the company.

Source quote
“Ling Hai is in the room today. He will assume the role of CFO, bringing his deep knowledge of our business, our products and our industry.”
Figure

Switching penetration increased to 72% this quarter, indicating a steady increase in the adoption of the company's switching services.

Source quote
“We steadily increased our switching penetration now reaching 72%.”
Figure

Mastercard's commercial debit and credit volumes grew at 12% in the second quarter.

4 more

Key theme

MA won several hundred flips and deal expansions in the first half of 2026, which are expected to drive trillions of dollars in incremental volume over the next decade.

Source quote
“In the first half of 2026, we won several hundred flips and deal expansions, which are expected to drive trillions of dollars in incremental volume to our network over the next decade.”
Figure

Mastercard added over 230 million net new cards into the market in the 12 months through quarter 2 of this year.

Source quote
“We have added over 230 million net new Mastercard into the market in the 12 months through quarter 2 of this year.”
Figure

In its first 3 quarters, Threat Intelligence has identified more than 7 million card testing transactions across 192 countries.
Figure

The company repurchased $4.9 billion worth of stock during the quarter and an additional $700 million through July 27, 2026.

Source quote
“During the quarter, we repurchased $4.9 billion worth of stock and approximately $700 million of additional stock through July 27, 2026.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Typical (was typical)

Answers to analysts Typical (was typical)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“In the U.S., GDV increased by 6% with credit growth of 10% and debit growth of 1%.”

“Net income and EPS increased 16% and 19%, respectively, driven primarily by the strong operating income growth in the quarter.”

“The growth in operating expenses was primarily driven by spending to drive the execution of our strategic priorities, including initiatives to further harden our infrastructure, geographic expansion and product innovation.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)

Metric	Q2 2026period end 2026-06-30	Q1 2026period end 2026-03-31	Change	Q2 2025	YoY
Revenue	9.28B	8.40B	+10.5%	8.13B	+14.1%
Operating income	5.59B	4.91B	+13.9%	4.78B	+17.0%
Net income	4.39B	3.88B	+13.0%	3.70B	+18.6%
EPS	4.97	4.35	+14.3%	4.07	+22.1%
P/E today 34.2	28.3	28.9	−0.6	37.9	−9.6

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Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-10-29 Results of operations · SEC 8-K
2026-07-30 Results of operations · SEC 8-K
Mastercard reported second-quarter net revenue of $9.3 billion, an increase of 14% compared to the $8.1 billion reported in the same period of the previous year.
2026-06-17 Shareholder vote results · SEC 8-K · routine
2026-06-08 Other events · SEC 8-K
Mastercard Incorporated completed an offering of Floating Rate Notes due 2028 for $500,000,000, 4.325% Notes due 2028 for $1,250,000,000, 4.425% Notes due 2029 for $1,150,000,000, and 4.600% Notes due 2031 for $1,350,000,000.
2026-06-02 Director or officer change · SEC 8-K
Mastercard announced leadership changes effective August 3, 2026, including Ling Hai becoming Chief Financial Officer and Sachin Mehra becoming Chief Business Officer.
2026-05-07 Director or officer change · SEC 8-K
Effective August 3, 2026, Sandra Arkell will become Chief Audit Executive, while Chris Mullett will be appointed as Corporate Controller and principal accounting officer.
2026-04-30 Results of operations · SEC 8-K
Mastercard reported first-quarter net revenue of $8.4 billion, an increase of 16% compared to $7.3 billion in the first quarter of 2025.
2026-02-05 Director or officer change · SEC 8-K

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-13.

Cash & runway

Cash & equivalents

$11.29B

2026-06-30

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: -2.9% YoY, -1.0% QoQ.

Quarter	Shares
Q3 2024	923.0M
Q1 2025	912.0M
Q2 2025	908.0M
Q3 2025	903.0M
Q1 2026	891.0M
Q2 2026	882.0M

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 51 filings; 50 filings parsed.

Sold by insiders

120.3K shares

$66.6M · 70 transactions

Bought by insiders

0 shares

0 transactions

Net direction

net selling

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

August 3

Ling Hai becoming the new CFO

Source quote
“and Ling Hai, our President of Asia Pacific, Europe, Middle East and Africa and incoming CFO effective August 3.”
the next decade

expected growth from won flips and deal expansions

Source quote
“In the first half of 2026, we won several hundred flips and deal expansions, which are expected to drive trillions of dollars in incremental volume to our network over the next decade.”
starting this quarter

managing the portfolio conversions for Westpac in Australia and Yapi Kredi in Turkey

Source quote
“For example, starting this quarter, we are managing the portfolio conversions for Westpac in Australia and Yapi Kredi in Turkey following our recent wins.”
Q3

closing of the acquisition of BVNK

Source quote
“Now turning to our thoughts for Q3 and the remainder of the year, which include the impacts related to the acquisition of BVNK that we expect to close in Q3.”
third quarter of 2026

year-over-year net revenue growth expected to be at the high end of low double-digit range on a currency-neutral basis, excluding inorganic activity

Source quote
“As it relates to our expectations for the third quarter of 2026, year-over-year net revenue growth is expected to be at the high end of low double-digit range on a currency-neutral basis, excluding inorganic activity.”