Payments giant Mastercard (NYSE: MA) reported stronger-than-expected first-quarter earnings on Thursday, but its stock slipped 2.1% in premarket trading as investors appeared to have already priced in the positive news following Visa's similar beat last week.
For the quarter ended March 31, 2026, Mastercard posted adjusted earnings of $4.60 per share, surpassing the Wall Street consensus of $4.41. Revenue climbed 16% year-over-year to $8.4 billion, above analyst forecasts of $8.26 billion. Net income rose to $870 million, or 73 cents per share, from $766 million, or 62 cents per share, a year earlier.
The muted market reaction came after Mastercard shares gained 3.5% on Wednesday ahead of the report. Year-to-date, the stock is down roughly 11%, while the S&P 500 has risen 1.6%.
Key operating metrics showed steady consumer engagement. Gross dollar volume — the total value of all transactions on Mastercard's network — rose 7% year-over-year to $2.7 trillion. Cross-border volume increased 13%, despite airspace closures over the Middle East that disrupted flight routes. Global purchase volume grew 10% on a local currency basis to $759 billion. Switched transactions rose 9%.
Consumer spending remained resilient, with higher-income households continuing discretionary purchases while lower-income consumers pulled back — a pattern analysts describe as a “K-shaped” economy that has helped sustain travel and entertainment spending.
Operating expenses rose 13% year-over-year, driven primarily by higher general and administrative costs, including a $202 million pretax restructuring charge. Excluding special items, adjusted operating expenses grew 11%.
Mastercard significantly advanced its crypto and stablecoin strategy during the quarter. In March, the company agreed to acquire stablecoin infrastructure firm BVNK for up to $1.8 billion. Mastercard also expanded its partnerships with Circle Internet Group and Binance.
CEO Michael Miebach highlighted the company's progress in digital payments innovation: “Building on our strong foundation, we’re advancing agentic commerce with Mastercard Agent Pay and expanding our stablecoin solutions through the planned acquisition of BVNK. We’re well positioned to capture the next wave of digital payments growth and continue to support secure commerce around the world.”
As of March 31, 2026, customers had issued 3.7 billion Mastercard and Maestro-branded cards globally.
