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. ...

Financial Data and Key Metrics Changes - For Q4 2025, net revenues increased by 15% overall, with value-added services and solutions net revenue up 22% on a non-GAAP currency-neutral basis [4][24] - Operating income rose by 17%, while net income and EPS increased by 17% and 20% respectively, driven by strong operating income growth and a positive discrete tax item [24] - Worldwide gross dollar volume (GDV) increased by 7% year-over-year, with U.S. GDV up 4% and international volume up 9% [25][26] 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% [26][28] - Commercial credit and debit volumes represented 13% of total GDV, growing at 11% year-over-year on a local currency basis [14] - Transaction processing assessments were up 14%, while switch transactions grew by 10% [28][29] Market Data and Key Metrics Changes - Cross-border volume increased by 14% globally, reflecting growth in both travel and non-travel-related spending [25] - Contactless penetration stood at 77% of all in-person switched purchase transactions, up 5 percentage points from the previous year [26] - Card growth was 6%, with 3.7 billion Mastercard and Maestro branded cards issued globally [26] Company Strategy and Development Direction - The company is focused on executing its clear strategy, making strong progress against strategic pillars, and benefiting from a diversified business model [4][5] - A strategic review will lead to reductions in some areas but will also result in increased investment and focus in others [5] - The company is actively engaging in emerging opportunities such as stablecoins and agentic commerce, positioning itself as a leader in the payments evolution [11][12] Management's Comments on Operating Environment and Future Outlook - Despite geopolitical and macroeconomic uncertainties, the company remains optimistic about its execution and business fundamentals [5][32] - The macroeconomic environment is supportive, with balanced job markets underpinning healthy consumer and business spending [32] - For 2026, the company expects net revenues to grow at the high end of a low double digits range on a currency-neutral basis, with a tailwind from foreign exchange [32][33] Other Important Information - The company secured various new multi-year government grants that will benefit operating expenses and other income [24] - A one-time restructuring charge of approximately $200 million is expected in Q1, impacting about 4% of full-time employees globally [35] - The company continues to innovate, launching new services such as Mastercard Credit Intelligence and Mastercard Agent Suite [21][22] Q&A Session Questions and Answers Question: Details on the Capital One renegotiation - The company is excited about extending its credit portfolio agreement with Capital One, emphasizing the value of the Mastercard network [37][38] Question: Implications of the CCCA - The company views the CCCA as a potential risk to consumer choice and cybersecurity, with a united industry opposition to the proposed bill [39][40][41] Question: Health of the consumer - Consumer spending remains healthy, with savvy consumers utilizing loyalty programs and data to make informed spending decisions [46][48] Question: Sensitivity to FX rate moves - The company acknowledges the difficulty in predicting FX volatility but emphasizes its ability to deliver value to customers regardless of market conditions [50][51] Question: VAS growth trends - The company is encouraged by the growth in value-added services, which are closely linked to the performance of the payment network [52][53][56]