Crypto plans, card spending, network fees gain prominence as Mastercard beats projections

Mastercard beat earnings with $4.35 EPS as quarterly profit rose to $3.9 billion, putting card spending, network fees, and its crypto plan back in front of investors.

Mastercard (NYSE: MA), the world’s second-largest debit and credit card company, posted a 14% profit rise as more people paid with cards. Global purchase volume increased 10% on a local currency basis to $759 billion. U.S. purchase volume rose 9% to $268 billion from a year earlier.

The quarter also landed with stronger consumer data. A global survey showed U.S. consumer sentiment rose sharply in the first quarter as optimism over the economy improved. Confidence also rose in debt-heavy eurozone countries.

For the quarter ended March 31, net income climbed to $870 million, or 73 cents per share, from $766 million, or 62 cents per share, a year earlier. Net revenue rose about 14% to $2.18 billion.

Analysts tracked by Reuters I/B/E/S expected 72 cents per share on $2.14 billion in revenue, so the company beat the line without needing any confetti cannon.

Mastercard grows payment volume as shoppers keep using cards across stores, travel, and online checkout

Mastercard said first-quarter net revenue increased 16% from the same period in 2025, or 12% on a currency-neutral basis. The gain came from its payment network and its value-added services and solutions business.

Payment network net revenue rose 12%, or 8% after currency moves. Gross dollar volume grew 7% in local currency terms to $2.7 trillion. Cross-border volume climbed 13%, while switched transactions rose 9%.

The company also paid more through customer deals. Payment network rebates and incentives increased 23%, or 19% on a currency-neutral basis, due to growth in the main business drivers and new and renewed agreements.

Mastercard’s value-added services and solutions net revenue rose 22%, or 18% on a currency-neutral basis. Growth came from security products, digital and authentication tools, business and market insights, consumer acquisition and engagement services, pricing, and other operating drivers.

Michael Miebach, CEO of Mastercard, said:

Mastercard raises expenses while Visa flags Russia pressure and crypto deals move forward

Total operating expenses rose 13% from the year-earlier period, mainly due to higher general and administrative costs. That included a restructuring charge in the first quarter of 2026. Lower litigation provisions partly offset the increase.

Excluding First Quarter Special Items, Mastercard’s adjusted operating expenses rose 11%, or 9% on a currency-neutral basis, again mainly because of general and administrative spending.

Other income and expense improved by $23 million from a year earlier. The change was mainly tied to government grant agreements executed in the fourth quarter of 2025, partly offset by higher net losses on equity investments.

Excluding net gains and losses on those investments, Mastercard’s adjusted other income and expense improved by $61 million, mainly because of government grants. The effective tax rate was 19.3%, up from 18.6% in 2025, due to lower net discrete tax benefits. The adjusted tax rate was 19.2%, compared with 19.1%.

Visa (NYSE: V) said last week that U.S. sanctions on Russia were hurting card transactions and that revenue growth would slow further this quarter. Mastercard made no mention of Russia in its Thursday statement. Shares fell 2.1% in premarket trading.

The stock was down 11.1% this year, while the S&P 500 was up 1.6%. In March, Mastercard agreed to buy stablecoin firm BVNK for up to $1.8 billion. It has also expanded work with Circle Internet Group Inc. and Binance. As of March 31, 2026, customers had issued 3.7 billion Mastercard and Maestro-branded cards.

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