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Mastercard profit beats estimates on sustained consumer spending

  • On January 29, Mastercard reported adjusted EPS of $4.76 and revenue of $8.81 billion, beating Wall Street's fourth-quarter profit and revenue expectations.
  • Household spending remained resilient with consumers prioritising necessities while high earners kept discretionary purchases, and U.S. banks saw credit-card balances edge up signalling borrowing demand.
  • Transaction metrics show gross dollar volume rose in the quarter and cross-border volumes jumped 14%, while value-added services and solutions revenue increased 26%.
  • Shares rose in premarket trading after the results, and U.S. banks reported credit-card balances edging up, signalling sustained borrowing demand despite high interest rates.
  • Diversifying into fraud protection and cybersecurity, Mastercard targets higher-margin value-added services as this segment outperforms its core network amid Visa and American Express earnings.
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The US payment service provider Visa benefited from strong consumer spending in its first quarter of the year. Revenue and profit increased more than analysts expected on average.

Mastercard reported net income of US$4.1 billion in the fourth quarter of 2025 – a 22% increase compared to US$3.3 billion in the same period of 2024. The full financial statement is available here (263 kb – PDF). The US card operator's net revenue was US$8.8 billion in the fourth quarter of 2025 – an 18% year-over-year increase compared to US$7.5 billion in 2024. Operating income grew from US$3.9 billion to US$4.9 billion year-over-year. Adjust…

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americanbankingnews.com broke the news in on Thursday, January 29, 2026.
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