Credit card giant Mastercard (MA) will release its fourth-quarter fiscal 2025 results before the market opens on Thursday, January 29. Investors should track Mastercard’s key performance indicators (KPIs) as they reveal past results and shape future expectations.
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A KPI is a measurable metric like revenue growth, margins, or daily active users that offers insights into trends, efficiency, and potential challenges such as market shifts or resource inefficiencies.
Mastercard’s Prime KPI: Gross Dollar Volumes
Mastercard operates one of the world’s largest payment networks, linking consumers, merchants, financial institutions, and governments for secure transactions. Its Gross Dollar Volumes (GDV) measures the total dollar value of transactions processed, reflecting the scale of Mastercard’s operations and its ability to capture consumer spending. Mastercard earns fees on this volume rather than the full amount.
In Q3FY25 Mastercard’s GDV hit $2.7 trillion, reflecting a 9% year-over-year growth on a local currency basis. Net revenue rose 16%, fueled by 15% cross-border volume growth and 22% in value-added services.
Despite geopolitical uncertainties and stiff competition from Visa (V), Mastercard’s diversified business model and strong consumer spending outlook support continued growth. The company is focused on expanding partnerships and services like those with American Airlines (AAL) and PayPal (PYPL).
Is Mastercard a Buy, Hold, or Sell?
Mastercard is expected to post an 11.3% year-over-year rise in adjusted EPS to $4.24. Meanwhile, sales are projected to reach $8.78 billion, up 17.2% compared to Q4FY24.
On TipRanks, Mastercard stock has a Strong Buy consensus rating based on 23 Buys and four Hold ratings. The average Mastercard price target of $665.54 implies 27.9% upside potential from current levels. Over the past year, MA shares have lost 4.9%.
