Mastercard(US:MA)2026-01-29 13:03Financial Performance - Fourth quarter net revenue reached $8.8 billion, an increase of 18% year-over-year, or 15% on a currency-neutral basis[3] - Fourth quarter net income was $4.1 billion, with diluted earnings per share (EPS) of $4.52, reflecting a 22% increase in net income and a 24% increase in EPS compared to the previous year[5] - Full year net revenue totaled $32.8 billion, up 16% year-over-year, or 15% on a currency-neutral basis[10] - The operating income for 2025 was $18,897 million, reflecting a 21% increase compared to $15,582 million in 2024[24] - Net income for 2025 reached $14,968 million, up 16% from $12,874 million in 2024[24] - Basic earnings per share for 2025 were $16.54, a 19% increase from $13.91 in 2024[24] - Net income for Q4 2025 was $4,278 million, a 22% increase compared to $3,513 million in Q4 2024[32] - Diluted earnings per share for Q4 2025 increased to $4.76, up 25% from $3.82 in Q4 2024[32] - The adjusted non-GAAP net income for the full year 2025 was $15,415 million, reflecting a 14% increase from $13,541 million in 2024[36] Revenue and Volume Growth - Gross dollar volume for the fourth quarter grew by 7% to $2.8 trillion, while cross-border volume increased by 14%[9] - Value-added services and solutions net revenue surged by 26%, or 22% on a currency-neutral basis, driven by growth in digital and authentication solutions[9] - Mastercard's total Gross Dollar Volume (GDV) for the three months ended December 31, 2025, was $2,819 billion, reflecting a growth of 9.8% year-over-year[41] - In the United States, GDV reached $1,994 billion, with a year-over-year growth of 12.3%[41] - The total number of transactions worldwide increased to 55,306 million, representing a growth of 9.1% compared to the previous year[41] - For the twelve months ended December 31, 2025, Mastercard's worldwide GDV was $10,632 billion, showing an 8.7% increase year-over-year[41] - In Europe, GDV for the three months was $1,006 billion, with a significant growth of 15.6%[41] - Mastercard's debit programs worldwide saw a GDV of $5,727 billion for the twelve months, with a growth rate of 10.0%[41] - The number of transactions in Latin America grew by 16.4%, reaching 7,987 million for the three months ended December 31, 2025[41] - In the APMEA region, GDV was $657 billion, with a growth of 5.6% year-over-year[41] Expenses and Liabilities - Total operating expenses for the fourth quarter increased by 10% to $3.9 billion, with adjusted operating expenses rising by 14%[9] - The effective tax rate for the fourth quarter was 16.7%, compared to 14.1% in the same period last year, influenced by changes in the geographic mix of earnings[9] - Total liabilities increased to $46,411 million in 2025 from $41,566 million in 2024, representing a 12% rise[25] - The company reported GAAP operating expenses of $3,896 million for Q4 2025, representing a 10% increase from $3,551 million in Q4 2024[32] - For the full year 2025, the company reported GAAP operating expenses of $13,894 million, a 10% increase from $12,585 million in 2024[36] Shareholder Returns - Mastercard repurchased 6.4 million shares at a cost of $3.6 billion during the fourth quarter, with $16.7 billion remaining under approved share repurchase programs[13] - The company purchased treasury stock amounting to $11,727 million in 2025, compared to $10,954 million in 2024[26] Cash and Assets - Cash and cash equivalents at the end of 2025 were $10,566 million, up from $8,442 million in 2024, indicating a 25% increase[25] - Total assets as of December 31, 2025, were $54,157 million, compared to $48,081 million in 2024, marking a 13% increase[25] - Mastercard's net cash provided by operating activities for 2025 was $17,648 million, compared to $14,780 million in 2024[26] Tax and Litigation - The effective income tax rate for Q4 2025 was 16.7%, compared to 14.1% in Q4 2024, an increase of 2.6 percentage points[32] - Full year 2025 pre-tax charges related to litigation provisions amounted to $504 million, compared to $680 million in 2024[40] - The company reported net pre-tax losses on equity investments of $88 million for the full year 2025, compared to losses of $29 million in 2024[37]