Mastercard (NYSE: MA) revenue jumps 14% and earnings per share grow faster

Posted by Paula Ricardo on Oct 30th, 2026

What happened

Mastercard Incorporated (NYSE: MA) grew third-quarter net revenue 14% to $9.8 billion from $8.6 billion a year earlier. Profit grew faster than sales.

Net income rose 18% to $4.6 billion. Diluted earnings per share rose 22% to $5.28 from $4.34. Adjusted EPS, which strips out equity-investment results and special items, was $5.31, up 21% from $4.38. Adjusted net income was $4.7 billion.

Revenue growth was the same as reported and on a currency-neutral basis. CEO Michael Miebach pointed to agentic commerce and a new Global Money Platform through BVNK.

Key numbers

Metric	Latest	Change	Source
Net revenue, Q3	$9.8 billion	from $8.6 billion, +14%	SEC 8-K earnings release
Net income, Q3	$4.6 billion	from $3.9 billion, +18%	SEC 8-K earnings release
Diluted EPS, Q3	$5.28	from $4.34, +22%	SEC 8-K earnings release
Adjusted diluted EPS, Q3	$5.31	from $4.38, +21%	SEC 8-K earnings release
Operating margin, Q3	59.8%	from 58.8%, +0.9 percentage points	SEC 8-K earnings release
Diluted weighted-average shares, Q3	876 million	from 905 million, -3.2%	Calculated from SEC 8-K

Read more: Mastercard (MA) company research

Where the growth came from

Both business lines grew. Payment network net revenue rose 11%. Value-added services and solutions revenue rose 19%.

The release ties network growth to volume. Gross dollar volume rose 7% on a local-currency basis to $3.0 trillion. Switched transactions rose 9%. Cross-border volume rose 11%, faster than overall dollar volume.

Mastercard says value-added services grew on strong demand across several services and on pricing.

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Why it matters

Costs grew more slowly than sales, which widened the margin. Operating income rose 16% to $5.9 billion while operating expenses rose 11%. Operating margin reached 59.8%, up from 58.8%.

Not all of the profit growth came from operations. By OptimistFi's calculation, income before taxes rose 14.8%, slower than net income, because the tax rate fell to 19.4% from 21.5%. The release credits higher net discrete tax benefits and other tax impacts.

Equity investments swung the other way, to a $5 million net loss from a $41 million gain a year earlier. Fewer shares also lifted the per-share figures. By OptimistFi's calculation, diluted weighted-average shares fell 3.2% to 876 million from 905 million.

Mastercard kept returning cash. It repurchased 5.3 million shares for $3.0 billion and paid $763 million in dividends in the quarter. From the quarter's end through Oct. 26 it bought another 1.1 million shares for $0.6 billion. It can repurchase up to $4.9 billion more under approved programs.

OptimistFi has argued that Mastercard turns rising payment volume into cash and rising EPS as long as regulators do not carve off flows or cap take-rates. Volume and EPS both rose this quarter, which supports that view.

What the quarter cost

Part of the revenue growth was paid away. Payment network rebates and incentives rose 18%, faster than payment network revenue. The release links the increase to key drivers and to new and renewed deals.

Cash conversion is the weaker spot. By OptimistFi's calculation, nine-month operating cash flow fell 6.2% to $11.86 billion from $12.65 billion. Nine-month net income rose to $12.9 billion from $10.9 billion. The cash flow statement shows a $4.69 billion outflow for prepaid expenses, up from $2.94 billion.

Debt and legal costs also rose or persisted. Long-term debt was $22.19 billion on Sept. 30, up from $18.25 billion at Dec. 31. Quarterly interest expense rose to $250 million from $186 million.

Litigation provisions were $74 million in the quarter, mainly for settlements with merchants who opted out of the U.S. merchant class litigation. A year earlier the charge was $83 million, tied to the U.S. liability shift litigation. The release's risk list includes regulation of interchange rates and surcharging.

What's next

Mastercard scheduled a 9 a.m. ET call and webcast on Oct. 29 to discuss third-quarter and year-to-date results.

The next quarterly report will test two points. Rebates and incentives growing faster than payment network revenue again would weigh on the case. So would operating cash flow staying below last year's pace. A recovery in cash flow alongside continued volume growth would strengthen it.