Mastercard beats Q2 estimates on strong consumer spending, cross-border payments

Investing.com -- Mastercard reported second-quarter earnings and revenue above Wall Street estimates on Thursday, as resilient consumer spending, robust cross-border payment activity and continued growth in its value-added services business lifted results.

The payments company posted adjusted earnings of $5.04 per share, beating analysts' estimates of $4.77, while revenue rose 14% year-over-year to $9.3 billion, ahead of the consensus estimate of $9.06 billion. Net income increased 19% to $4.4 billion, while diluted earnings per share rose to $4.97 from $4.07 a year earlier.

The results highlight the continued resilience of global consumer spending despite macroeconomic uncertainty, with strong payment volumes and international travel supporting transaction growth. Mastercard also benefited from rapid expansion in higher-margin value-added services, underscoring its strategy of diversifying beyond traditional card payment processing.

Gross dollar volume increased 8% on a local-currency basis to $2.9 trillion during the quarter, while purchase volume rose 10%, cross-border volume climbed 12% and switched transactions increased 9%. Payment network revenue increased 10%, while value-added services and solutions revenue jumped 20%, driven by security, digital authentication, consumer engagement and business insights offerings.

Mastercard repurchased 9.8 million shares for $4.9 billion and paid $771 million in dividends during the quarter. As of July 27, the company had $7.8 billion remaining under its approved share repurchase programs.

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