Visa vs. Mastercard: Which Is the Better Growth Stock for 2026?

Core Insights - Both Visa and Mastercard are well-positioned as payment networks benefiting from the shift from cash to digital transactions, but they differ in scale, growth rates, and valuation [1] Visa Overview - Visa reported net revenue of $40.0 billion for fiscal 2025, reflecting an 11% year-over-year increase [3] - In the fourth quarter of fiscal 2025, Visa's net revenue rose 12% to $10.7 billion, driven by healthy consumer spending [3] - Visa processed 67.7 billion transactions in the final quarter, marking a 10% increase year over year [3] - Adjusted earnings per share for Visa increased by 14% year over year for the full fiscal year [4] - Visa returned $22.8 billion to shareholders in fiscal 2025, primarily through share repurchases totaling $18.2 billion [4] Mastercard Overview - Mastercard's third-quarter revenue grew 17% year over year to $8.6 billion, outpacing Visa's growth [5] - The key driver for Mastercard's growth was its value-added services and solutions, which saw a 25% year-over-year revenue increase [7] - Mastercard's operating income in the third quarter rose 26% year over year to $5.1 billion, with operating margin expanding from 54.3% to 58.8% [8] - Earnings per share for Mastercard increased by 23% year over year to $4.34 [8] Comparative Analysis - Both Visa and Mastercard are experiencing double-digit growth rates, with Mastercard growing at a faster pace [6] - Both companies are actively engaging in stock buybacks [6]