Latest quarter
Mastercard’s filing reported Q2 FY2026 revenue of $9.3 billion, up 14.1% from $8.1 billion a year earlier. Revenue exceeded the consensus of $9.1 billion by 2.44%, while adjusted EPS, as the consensus counts it, was $5.04 versus the $4.77 consensus, a 5.66% excess.
The filing reported diluted EPS of $4.97, up 22.1% from $4.07. Payment-network revenue increased 10%, while value-added services and solutions revenue increased 20%; the filing attributed total revenue growth to both businesses. Operating margin rose to 60.2% from 58.7%, while free cash flow was $3.3 billion, down −25.0% from $4.4 billion.
Mastercard had expected Q2 currency-neutral revenue growth and operating-expense growth at the low end of the low-double-digit range, excluding inorganic activity. The filing reported 12% currency-neutral revenue growth and 10% currency-neutral adjusted operating-expense growth for the quarter.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $9.3 billion | $8.1 billion | 14.1% |
| Diluted EPS | $4.97 | $4.07 | 22.1% |
| Gross margin | 100.0% | 100.0% | 0.0 percentage points |
| Operating margin | 60.2% | 58.7% | 1.5 percentage points |
| Free cash flow | $3.3 billion | $4.4 billion | −25.0% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $5.04 | $4.77 | Beat by 5.66% |
| Revenue | $9.3 billion | $9.1 billion | Beat by 2.44% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
On the Q2 call, Chief Financial Officer Sachin Mehra said U.S. consumer and business spending remained broad-based across credit and debit, consumer and commercial spending, and mass and affluent customer groups. He said higher fuel prices supported spending and that any World Cup effect in the second quarter was difficult to quantify. Mehra also said cross-border trends improved between April and June as outbound travel from affected Gulf Cooperation Council countries recovered and capacity from airlines increased.
Mehra said increased U.S.-dollar availability in Venezuela supported card-not-present cross-border spending there, rather than travel-related spending. He said Mastercard’s approach to customer deals was to pursue volume that meets its financial criteria and supports higher net revenue yield, rather than volume alone. When analysts asked about Europe and competition, Mehra said prior portfolio wins created comparison effects and that the company evaluates deals according to their economics.
Chief Executive Officer Michael Miebach said Mastercard is building payment capabilities for agentic commerce, including card-based transactions delegated to agents and machine-to-machine payments that may use different settlement rails. He said stablecoins could have a role alongside other settlement methods and that Mastercard expects to close its BVNK acquisition in Q3. Miebach also said the company had added Recorded Future to its cybersecurity offering and cited $172 million of fraud prevented on malicious domains.
Mehra said rebates and incentives as a percentage of payment-network assessments are expected to be slightly higher in Q3 than in Q2.
Guidance
Mastercard’s supplied guidance called for a FY2026 non-GAAP tax rate of 20.0%–21.0%. On the Q2 call, Mehra said rebates and incentives as a percentage of payment-network assessments are expected to be slightly higher in Q3 than in Q2, and he said Mastercard expects the BVNK acquisition to close in Q3.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Tax rate, non-GAAP | Q2 2026 and FY2026 | 20.0%–21.0% | — | New |