Zacks Research Raises Earnings Estimates for Mastercard

Mastercard Incorporated (NYSE:MA) – Stock analysts at Zacks Research increased their FY2026 earnings estimates for Mastercard in a research report issued to clients and investors on Thursday, August 13th. Zacks Research analyst Team now anticipates that the credit services provider will post earnings per share of $19.72 for the year, up from their previous estimate of $19.40. The consensus estimate for Mastercard’s current full-year earnings is $19.82 per share. Zacks Research also issued estimates for Mastercard’s Q4 2026 earnings at $4.99 EPS, Q1 2027 earnings at $4.98 EPS, Q2 2027 earnings at $5.49 EPS, Q3 2027 earnings at $5.95 EPS, Q4 2027 earnings at $5.92 EPS, FY2027 earnings at $22.34 EPS and FY2028 earnings at $25.74 EPS.

Mastercard (NYSE:MA) last issued its quarterly earnings results on Thursday, July 30th. The credit services provider reported $5.04 earnings per share for the quarter, beating the consensus estimate of $4.77 by $0.27. Mastercard had a return on equity of 239.99% and a net margin of 46.34%.The company had revenue of $9.28 billion during the quarter, compared to analysts’ expectations of $9.08 billion. During the same quarter in the prior year, the firm posted $4.15 earnings per share. The business’s quarterly revenue was up 14.1% on a year-over-year basis.

Other equities analysts have also recently issued reports about the company. Raymond James Financial reiterated an “outperform” rating and issued a $632.00 target price on shares of Mastercard in a report on Friday, July 31st. UBS Group upped their price objective on shares of Mastercard from $640.00 to $670.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Truist Financial boosted their target price on shares of Mastercard from $554.00 to $633.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. TD Cowen upped their target price on shares of Mastercard from $664.00 to $667.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Finally, Susquehanna dropped their price target on shares of Mastercard from $670.00 to $665.00 and set a “positive” rating on the stock in a research report on Friday, May 1st. Five analysts have rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Mastercard has a consensus rating of “Buy” and a consensus target price of $661.93.

Mastercard Stock Up 1.4%

Shares of Mastercard stock opened at $567.50 on Friday. The firm has a market cap of $497.14 billion, a price-to-earnings ratio of 31.22, a PEG ratio of 1.68 and a beta of 0.72. Mastercard has a one year low of $464.52 and a one year high of $601.77. The stock’s 50-day moving average is $528.81 and its 200 day moving average is $516.18. The company has a debt-to-equity ratio of 3.96, a current ratio of 1.06 and a quick ratio of 1.06.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MA. Robinswood Financial LLC bought a new stake in shares of Mastercard in the 1st quarter worth approximately $25,000. E Fund Management Hong Kong Co. Ltd. grew its holdings in Mastercard by 820.0% during the fourth quarter. E Fund Management Hong Kong Co. Ltd. now owns 46 shares of the credit services provider’s stock valued at $26,000 after purchasing an additional 41 shares during the period. Strive Financial Group LLC bought a new position in Mastercard during the fourth quarter valued at $27,000. Hyposwiss Advisors SA purchased a new stake in Mastercard in the fourth quarter worth $29,000. Finally, First Pacific Financial increased its position in Mastercard by 113.8% in the first quarter. First Pacific Financial now owns 62 shares of the credit services provider’s stock worth $31,000 after buying an additional 33 shares during the last quarter. 97.28% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Mastercard news, insider J. Mehra Sachin sold 3,000 shares of the company’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $571.87, for a total value of $1,715,610.00. Following the completion of the transaction, the insider owned 40,916 shares in the company, valued at $23,398,632.92. This represents a 6.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Linda Pistecchia Kirkpatrick sold 4,280 shares of Mastercard stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $570.31, for a total value of $2,440,926.80. Following the sale, the insider owned 31,179 shares in the company, valued at $17,781,695.49. The trade was a 12.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 62,913 shares of company stock valued at $35,769,036. 0.09% of the stock is currently owned by insiders.

Mastercard Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Thursday, July 9th were given a $0.87 dividend. The ex-dividend date of this dividend was Thursday, July 9th. This represents a $3.48 annualized dividend and a yield of 0.6%. Mastercard’s payout ratio is currently 19.14%.

Key Headlines Impacting Mastercard

Here are the key news stories impacting Mastercard this week:

• Positive Sentiment: Bill Ackman adds Mastercard to Pershing Square portfolios. The billionaire investor disclosed Mastercard as one of six new holdings, citing the company’s potential for strong earnings growth. The disclosure may support sentiment by adding a prominent long-term shareholder and signaling confidence in Mastercard’s competitive position. Ackman unveils six new investments including Netflix, Visa, Mastercard
• Positive Sentiment: Erste Group Bank raised its Mastercard earnings estimates, including its fiscal 2027 EPS forecast. Higher analyst expectations reinforce the view that payment volumes, pricing and Mastercard’s services businesses can continue supporting earnings growth. Erste Group Bank Raises Earnings Estimates for Mastercard
• Positive Sentiment: Mastercard and TeamApt announced a strategic collaboration to expand digital payments across Africa. The partnership could increase Mastercard’s exposure to underpenetrated markets and benefit transaction growth as more consumers and businesses move into digital payments. Mastercard, TeamApt announce strategic collaboration
• Positive Sentiment: Investors are highlighting Mastercard’s opportunity in agentic commerce. As AI agents increasingly initiate and authenticate purchases, Mastercard’s faster-growing value-added services business could capture additional revenue from fraud prevention, authentication and transaction processing. Mastercard Stock Rises as Ackman Targets Agentic Commerce
• Neutral Sentiment: Mastercard also launched a cross-border stablecoin payments pilot with Borderless.xyz using its Crypto Credential standards. The initiative expands Mastercard’s digital-asset capabilities, although the near-term financial impact remains uncertain. Mastercard Starts a Cross-Border Stablecoin Payments Pilot
• Negative Sentiment: A UK lawsuit could lead to compensation payments for millions of consumers, creating a potential legal and financial overhang. The size and timing of any liability remain unclear. Millions of consumers could get £70 each after Mastercard lawsuit

Mastercard Company Profile

Mastercard Incorporated is a global payments technology company that operates a network connecting consumers, financial institutions, merchants, governments and businesses in more than 200 countries and territories. The company facilitates electronic payments and transaction processing for credit, debit and prepaid card products carrying the Mastercard brand, while also providing a range of payment-related services to issuers, acquirers and merchants. Its technology and network enable authorization, clearing and settlement of payments and support a broad set of use cases including point-of-sale, e-commerce and mobile payments.

Beyond core transaction processing, Mastercard offers a suite of value-added services such as fraud and risk management, identity and authentication tools, tokenization and digital wallet support, cross-border and commercial payment solutions, and data analytics and consulting services for merchants and financial partners.