Adjusted EPS of $4.60 topped analyst estimates of $4.41, but April-to-date data showed a deceleration in cross-border transaction growth
Mastercard $MA reported first-quarter net revenue of $8.4 billion, a 16% increase from a year earlier, as adjusted earnings per share topped analyst expectations — though April-to-date data showed a slowdown in cross-border activity that sent the company's stock lower.
Adjusted diluted EPS came in at $4.60, the company said. Analysts had projected $4.41, according to Seeking Alpha. GAAP diluted EPS was $4.35, and net income reached $3.9 billion.
Cross-border volume grew 13% on a local currency basis in the quarter. Data covering transactions through early April pointed to slowing momentum in cross-border volume, Seeking Alpha reported. Shares fell 1.4% before the market opened Thursday.
Gross dollar volume rose 7% on a local currency basis to $2.7 trillion, while switched transactions increased 9%. Value-added services and solutions revenue grew 22%, or 18% on a currency-neutral basis, driven by security solutions, digital and authentication solutions, business and market insights, and consumer acquisition and engagement services.
The results included a pre-tax restructuring charge of $202 million, which the company said was "primarily intended to enable reinvestment to support the realization of our long-term growth opportunities." Operating margin was 58.4% on a GAAP basis and 60.8% on an adjusted basis.
Mastercard repurchased 7.8 million shares for $4.0 billion during the quarter and paid $777 million in dividends. As of March 31, 2026, there were 3.7 billion Mastercard and Maestro-branded cards outstanding.
CEO Michael Miebach pointed to the company's diversification and digital payments positioning. "Mastercard is diversified, future-ready, and delivering," Miebach said in a statement. "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."
