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Mastercard
(NYSE:MA)
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Rating:83Outperform
Price Target:
$671.00
â–²(24.34% Upside)
Action:Reiterated
Date:08/07/26
The score is driven primarily by strong financial performance (high profitability and solid cash generation) and a favorable technical setup (price in a strong uptrend with positive momentum). These positives are moderated by premium valuation (high P/E and low yield) and earnings-call risks around rising expenses and near-term headwinds (rebates/incentives, FX and regional impacts).
Positive Factors
Network scale & adoption
Mastercard’s global network scale and rising transaction activity create durable network effects: larger card base and GDV growth deepen merchant and issuer reliance, raise switching costs, and support steady fee-based revenue as digital payments replace cash over time.
Negative Factors
Elevated leverage
Meaningful leverage and a thinner equity cushion reduce balance-sheet flexibility. Higher indebtedness raises interest and refinancing exposure, limiting room for large strategic investments or absorbing shocks in a downturn without increasing financial risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Network scale & adoption
Mastercard’s global network scale and rising transaction activity create durable network effects: larger card base and GDV growth deepen merchant and issuer reliance, raise switching costs, and support steady fee-based revenue as digital payments replace cash over time.
Read all positive factors
Mastercard Key Performance Indicators (KPIs)
Any
Gross Dollar Volume
Measures the total dollar value of transactions processed, reflecting the scale of Mastercard’s operations and its ability to capture consumer spending.
Measures the total dollar value of transactions processed, reflecting the scale of Mastercard’s operations and its ability to capture consumer spending.
Data provided by:
The Fly
The FlyMastercard (MA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$491.83B
Dividend Yield0.6%
Average Volume (3M)3.40M
Price to Earnings (P/E)30.7
Beta (1Y)0.77
Revenue Growth16.15%
EPS Growth22.59%
CountryUS
Employees39,800
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)18.21
Shares Outstanding869,464,100
10 Day Avg. Volume2,791,434
30 Day Avg. Volume3,397,906
Financial Highlights & Ratios
PEG Ratio1.83
Price to Book (P/B)66.19
Price to Sales (P/S)15.62
P/FCF Ratio30.28
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$661.00Price Target Upside22.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering24
EPS Forecast (FY)19.93
Revenue Forecast (FY)$37.25B
Mastercard Business Overview & Revenue Model
Company Description
Mastercard Incorporated is a global technology firm specializing in providing transaction processing and a wide array of payment solutions, operating across the United States and internationally. Its core business centers on enabling the entire pa...
How the Company Makes Money
Mastercard primarily makes money by charging fees tied to the use of its payment network and by selling additional services to participants in the payments ecosystem.
1) Network (payment) fees
- Domestic and cross-border transaction processing: W...
Mastercard Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive performance: strong top-line growth, healthy margin expansion, robust value-added services momentum, multiple commercial wins, meaningful security/fraud-prevention outcomes and continued innovation in areas like Agentic Commerce, stablecoins and machine-to-machine payments. Offsetting items are manageable near-term headwinds — rising operating expenses, modest FX/inorganic impacts, higher rebates/incentives in Q3, interest-related other expense and regional episodic impacts from geopolitical tensions (Middle East) and lapping in Europe. Overall, the positives (durable growth drivers, product/service expansion, and strategic deals/acquisitions) materially outweigh the moderate operational and macro headwinds.Positive Updates
Strong Top-Line and Profit Growth
Net revenue up 12% (non-GAAP, currency-neutral); adjusted net income up 16%; EPS $5.04, up 19% year-over-year. Operating income increased 14% and payments-network net revenue increased 8%.
Negative Updates
Rising Operating Expenses
Total adjusted operating expenses increased 10% year-over-year (including a 1 ppt benefit from dispositions). Management expects operating expense growth to remain in the low double-digits in Q3 and for the full year (currency-neutral, excluding inorganic items).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line and Profit Growth
Net revenue up 12% (non-GAAP, currency-neutral); adjusted net income up 16%; EPS $5.04, up 19% year-over-year. Operating income increased 14% and payments-network net revenue increased 8%.
Read all positive updates
Company Guidance
Mastercard expects Q3 2026 net revenue growth at the high end of the low‑double‑digit range on a currency‑neutral, non‑GAAP basis (excluding inorganic activity), with about a 0.5 ppt foreign‑exchange headwind and minimal inorganic impact; Q3 operating expenses are expected to grow in the low‑double‑digits (currency‑neutral, excluding inorganic and special items) with a ~0.5 ppt inorganic headwind and a 0–0.5 ppt FX tailwind. For full‑year 2026, net revenue is still expected at the high end of the low‑double‑digit range (now tracking higher within that range after a strong H1), with minimal inorganic impact and an approximate 1 ppt FX tailwind, while full‑year operating expense growth is expected in the low‑double‑digits with minimal inorganic impact and a 0.5–1 ppt FX headwind. Additional guidance items: Q3 other income/expense of roughly $125 million (driven by incremental interest from a June bond), a non‑GAAP tax rate of 20–21% for Q3 and Q4, the BVNK acquisition expected to close in Q3 (minimal net‑revenue, some opex impact), and rebates & incentives as a percent of payment network assessments expected to be slightly higher in Q3 versus Q2.Mastercard Financial Statement Overview
Summary
Income Statement
93
Very Positive
Balance Sheet
72
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 35.08B | 32.79B | 28.17B | 25.10B | 22.24B | 18.88B |
| Gross Profit | 29.03B | 25.54B | 21.49B | 19.08B | 16.97B | 14.39B |
| EBITDA | 22.12B | 20.44B | 16.80B | 15.01B | 12.95B | 11.46B |
| Net Income | 16.26B | 14.97B | 12.87B | 11.20B | 9.93B | 8.69B |
Balance Sheet | ||||||
| Total Assets | 57.69B | 54.16B | 48.08B | 42.45B | 38.72B | 37.67B |
| Cash, Cash Equivalents and Short-Term Investments | 11.61B | 10.90B | 8.77B | 9.18B | 7.41B | 7.89B |
| Total Debt | 24.64B | 19.00B | 18.23B | 15.68B | 14.02B | 13.90B |
| Total Liabilities | 52.09B | 46.41B | 41.57B | 35.45B | 32.35B | 30.26B |
| Stockholders Equity | 5.61B | 7.74B | 6.49B | 6.93B | 6.30B | 7.31B |
Cash Flow | ||||||
| Free Cash Flow | 16.45B | 16.91B | 14.31B | 11.61B | 10.10B | 8.65B |
| Operating Cash Flow | 17.37B | 17.40B | 14.78B | 11.98B | 11.20B | 9.46B |
| Investing Cash Flow | -1.67B | -1.36B | -3.40B | -1.35B | -1.47B | -5.27B |
| Financing Cash Flow | -13.23B | -14.18B | -10.84B | -9.49B | -10.33B | -6.55B |
Mastercard Technical Analysis
Positive
539.66
Price Trends
525.09
Positive
512.72
Positive
526.49
Positive
Market Momentum
11.13
Positive
56.86
Neutral
16.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MA, the sentiment is Positive. The current price of 539.66 is below the 20-day moving average (MA) of 557.34, above the 50-day MA of 525.09, and above the 200-day MA of 526.49, indicating a bullish trend. The MACD of 11.13 indicates Positive momentum. The RSI at 56.86 is Neutral, neither overbought nor oversold. The STOCH value of 16.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MA.
Mastercard Risk Analysis
Mastercard disclosed 32 risk factors in its most recent earnings report. Mastercard reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mastercard Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $491.83B | 30.74 | 232.46% | 0.62% | 16.15% | 22.59% | |
82 Outperform | $677.40B | 30.54 | 61.26% | 0.73% | 14.39% | 14.71% | |
74 Outperform | $50.47B | 11.11 | 24.42% | 0.75% | 6.32% | 12.89% | |
73 Outperform | $25.53B | 8.05 | 20.94% | 1.65% | -2.40% | 18.50% | |
70 Outperform | $134.45B | 13.76 | 9.28% | 1.48% | 39.21% | -76.14% | |
68 Neutral | $230.15B | 20.87 | 34.12% | 1.09% | 9.41% | 15.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
MA
Mastercard
559.73
-14.59
-2.54%
AXP
American Express
344.08
40.46
13.33%
COF
Capital One Financial
222.44
6.06
2.80%
V
Visa
359.42
19.59
5.76%
SYF
Synchrony Financial
79.41
8.01
11.22%
PYPL
PayPal Holdings
59.20
-10.82
-15.46%
Mastercard Corporate Events
Executive/Board ChangesShareholder Meetings
Mastercard Shareholders Back Board, Pay and Auditor Slate
Positive
Jun 17, 2026
On June 16, 2026, Mastercard stockholders elected 11 directors, including CEO Michael Miebach, to one-year terms at the company’s annual meeting, with each nominee receiving strong majority support, and they also gave broad backing to the fi...
Business Operations and StrategyPrivate Placements and Financing
Mastercard Raises $5 Billion Through Multi-Tranche Debt Offering
Positive
Jun 8, 2026
On June 8, 2026, Mastercard completed a multi-tranche debt offering totaling $5 billion, including floating rate notes due 2028 and fixed-rate notes maturing between 2028 and 2036 with coupons ranging from 4.325% to 5.000%. The issuance, conducted...
Business Operations and StrategyExecutive/Board Changes
Mastercard Announces Major Leadership Reshuffle and CFO Change
Positive
Jun 2, 2026
On June 2, 2026, Mastercard announced a wide-ranging leadership reshuffle effective August 3, 2026, aimed at sharpening execution, unifying its global go-to-market structure and deepening customer focus to support continued growth. Ling Hai, curre...
Executive/Board Changes
Mastercard Announces Leadership Changes in Key Finance Roles
Neutral
May 7, 2026
On May 7, 2026, Mastercard announced that Corporate Controller and principal accounting officer Sandra Arkell will become the company’s Chief Audit Executive, effective August 3, 2026, and will step down from her current position on that dat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.