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]

Mastercard (NYSE:MA) Q4 2025 Earnings call January 29, 2026 09:00 AM ET Company ParticipantsDevin Corr - Head of Investor RelationsMichael Miebach - CEOOperatorGood morning. My name is Julie Ann, and I will be your conference operator today. At this time, I would like to welcome everyone to the Mastercard Incorporated Q4 and full year 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers are marked, there will be a question-and-answer session. ...

Mastercard (NYSE:MA) Q4 2025 Earnings call January 29, 2026 09:00 AM ET Speaker2Good morning. My name is Julie Ann, and I will be your conference operator today. At this time, I would like to welcome everyone to the Mastercard Incorporated Q4 and full year 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers are marked, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed ...

Financial Performance - Net revenues increased by 15% overall, with Value Added Services and Solutions net revenue up 22% year-over-year on a non-GAAP currency-neutral basis [4][24] - Operating income rose by 15%, while net income and EPS increased by 8% and 11%, respectively, with EPS at $4.38, including a $0.10 contribution from share repurchases [24][25] - Worldwide gross dollar volume (GDV) grew by 9% year-over-year, with U.S. GDV up 7% and international volume increasing by 10% [25][26] Business Line Performance - Payment network net revenue increased by 10%, driven by domestic and cross-border transaction growth, while Value Added Services and Solutions net revenue saw a 22% increase, with acquisitions contributing approximately 3 percentage points to this growth [26][27] - Domestic assessments rose by 6%, and cross-border assessments increased by 16%, reflecting strong demand in international markets [27] Market Performance - Cross-border volume increased by 15% globally, indicating continued growth in both travel and non-travel related spending [25][26] - Contactless penetration reached 77% of all in-person switched purchase transactions, up 6 percentage points from the previous year [25] Company Strategy and Industry Competition - The company is focused on three strategic priorities: consumer payments, agentic commerce, and services, aiming to unlock long-term growth [6][12] - The company is expanding its acceptance footprint in underpenetrated verticals, such as rental payments, and has made significant partnerships to enhance its offerings [8][80] - The company is leveraging its extensive data and insights to drive innovations in security, consumer engagement, and market insights, positioning itself competitively against local payment networks [21][63] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the macroeconomic environment, noting healthy consumer and business spending, balanced labor markets, and steady inflation levels [4][30] - The company anticipates continued healthy consumer and business spending, with net revenue growth expected to be at the high end of a low double digits range for Q4 [31][32] Other Important Information - The company repurchased $3.3 billion worth of stock during the quarter, with an additional $1.2 billion repurchased through October 27, 2025 [25] - The company is actively pursuing M&A opportunities, focusing on strategic acquisitions that align with its growth objectives [82] Q&A Session Summary Question: Insights on U.S. payment volume growth and holiday spending outlook - Management noted steady growth across different consumer segments, with continued spending trends observed in October [44][45] Question: Drivers behind Value Added Services growth and sustainability - Management highlighted that cybersecurity demand and ongoing innovation in services are key drivers, with a strong portfolio mix supporting growth [56][60] Question: Evolution of agentic commerce and associated risks - Management discussed the complexities of agentic commerce, emphasizing the need for trust and security in transactions, and the company's role in certifying agents [68][72] Question: New acceptance channels and M&A pipeline - Management indicated progress in underpenetrated verticals like rent payments and reiterated a strategy-led approach to M&A, focusing on services [80][82] Question: Differentiation in agentic commerce and competitive landscape - Management outlined the company's unique position in agentic commerce, leveraging its extensive network and services to capture market share from local payment networks [88][89]