Financial Data and Key Metrics Changes - For Q4 2025, net revenues increased by 15%, with value-added services and solutions net revenue up 22% on a non-GAAP currency-neutral basis [4][22] - Operating income rose by 17%, while net income and EPS increased by 17% and 20% respectively, with EPS at $4.76, including a $0.10 contribution from share repurchases [23][24] - Worldwide gross dollar volume (GDV) grew by 7% year-over-year, with U.S. GDV increasing by 4% and international volume rising by 9% [24][25] Business Line Data and Key Metrics Changes - Payment network net revenue increased by 9%, driven by domestic and cross-border transaction growth, while value-added services and solutions net revenue increased by 22% [25][26] - Commercial credit and debit volumes represented 13% of total GDV, growing at 11% year-over-year on a local currency basis [14] - The company secured over 60 new affluent programs globally in 2025, indicating strong performance in affluent segments [7][8] Market Data and Key Metrics Changes - Cross-border volume increased by 14% globally, reflecting growth in both travel and non-travel-related spending [24] - Contactless penetration reached 77% of all in-person switched purchase transactions, up 5 percentage points from the previous year [25] - The company reported a 10% year-over-year growth in switch transactions for Q4 [25][26] Company Strategy and Development Direction - The company is focused on executing its clear strategy, benefiting from a diversified business model across geographies and payment adjacencies [5][6] - Recent strategic reviews will lead to reductions in some areas but increased investment in others, indicating a commitment to innovation and agility [5][6] - The company is actively engaging in emerging opportunities such as stablecoins and agentic commerce, positioning itself as a leader in the evolving payments landscape [10][11] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the fundamentals of the business despite geopolitical and macroeconomic uncertainties [5][30] - The company expects net revenues to grow at the high end of a low double digits range on a currency-neutral basis for 2026, with a tailwind from foreign exchange [30][32] - The macroeconomic environment is supportive, with balanced job markets underpinning healthy consumer and business spending [30] Other Important Information - The company secured various multi-year government grants that will benefit operating expenses and other income, with an expected operating expense benefit of around 5.5 percentage points [23] - A one-time restructuring charge of approximately $200 million is expected in Q1 2026, impacting about 4% of full-time employees globally [33] Q&A Session Summary Question: Details on the Capital One renegotiation - Management expressed excitement about the extension of the credit portfolio agreement with Capital One, emphasizing the value of the Mastercard network [35][36] Question: Implications of the CCCA - Management noted that there is a united opposition to the proposed Credit Card Competition Act, highlighting concerns about consumer choice and cybersecurity risks [37][39] Question: Health of the consumer - Management indicated that consumer spending remains healthy, with savvy consumers utilizing loyalty programs effectively [44][46] Question: Sensitivity to FX volatility - Management acknowledged the challenges in predicting FX volatility but emphasized the company's ability to deliver value through currency conversion services [48][49] Question: Future growth of value-added services - Management expressed confidence in the continued growth of value-added services, driven by the interconnectedness with the payment network [50][51]

Financial Performance - The company reported a 16% increase in net revenues and a 12% increase in adjusted net income year-over-year on a non-GAAP currency neutral basis [6][33] - Operating expenses rose by 14%, with operating income increasing by 17% [34] - Net income and EPS increased by 12% and 14% respectively, with EPS at $4.15, including a $0.09 contribution from share repurchases [34] Business Line Performance - Payment Network net revenue grew by 13%, driven by domestic and cross-border transaction growth [38] - Value-added services and solutions net revenue increased by 22%, with acquisitions contributing approximately 4 percentage points to this growth [38] - Worldwide gross dollar volume (GDV) increased by 9%, with U.S. GDV up by 6% and international GDV up by 10% [35] Market Performance - Cross-border volume increased by 15% globally, reflecting growth in both travel and non-travel related spending [36] - Card present transactions grew significantly, with contactless transactions now representing 75% of all in-person switch purchase transactions [37] - The company continues to expand acceptance in various markets, including launching tap-to-pay in the Shanghai Metro [13] Company Strategy and Industry Competition - The company is focused on diversifying its business model and enhancing partnerships with leading merchants and fintechs [8][10] - New programs are being launched in various markets, including partnerships with American Airlines and Walmart [9][10] - The company is leveraging its data and product capabilities to differentiate its offerings and capture adjacent revenue opportunities [27][29] Management Commentary on Operating Environment and Future Outlook - Management remains positive about growth outlook, citing healthy consumer spending supported by low unemployment and wage growth [7][45] - The company is tightening its full-year net revenue outlook to the high end of the previously shared range, expecting low teens growth on a currency neutral basis [47] - Ongoing geopolitical and economic uncertainties are acknowledged, but the company maintains a diversified business model to mitigate risks [46] Other Important Information - The company repurchased $2.3 billion worth of stock during the quarter, with an additional $1 billion planned [34] - The effective tax rate is expected to be in the 20% to 21% range for both Q3 and the full year [49] Q&A Session Summary Question: Impact of lapping portfolios on growth metrics - Management confirmed that the lapping impact from portfolios like Citizens and Wells Fargo has become more pronounced and will continue through Q3 and Q4 [55][56] Question: Differentiation in value-added services - The company highlighted its focus on cybersecurity and personalized engagement solutions as key differentiators in its value-added services [62][66] Question: Cross-border volume growth expectations - Management noted that cross-border volumes are well diversified and continue to grow, with travel volumes representing about 60% of total cross-border volumes [95] Question: Client incentives and rebates - Management indicated that rebates and incentives as a percentage of payment network assessments are expected to increase in Q3, driven by a competitive market [101] Question: Update on Recorded Future performance - Management expressed excitement about the integration of Recorded Future, emphasizing its potential in threat intelligence and cybersecurity solutions [84][87] Question: Market share in regions with strong local players - The company is focused on differentiating its product set and building partnerships in markets like Brazil to capture cash transition opportunities [114]