Mastercard reported strong Mastercard Q4 2025 earnings, supported by steady consumer and business spending and faster growth in its services business. The company posted $4.1 billion in net income for the quarter, while earnings per share (EPS) reached $4.52.
Revenue also climbed sharply. Net revenue came in at $8.8 billion, up 18% year over year, or 15% without currency effects, as payment activity and services demand increased.
Mastercard said payment network revenue rose 12%, or 9% excluding currency shifts. The company tied the gain to higher payment volumes across its network.
Gross dollar volume reached $2.8 trillion, rising 7% in local currency. Cross-border volume increased 14%, while switched transactions grew 10%.
Higher activity also raised costs tied to customer deals. Rebates and incentives climbed 20%, reflecting increased volume and program activity.
Beyond the core network, Mastercard reported sharp gains in value-added services and solutions. That segment rose 26%, or 22% on a currency-neutral basis.
Acquisitions contributed three percentage points of the segment’s growth. However, Mastercard informed that most of the increase came from demand for digital security, identity checks, analytics, and customer engagement tools.
Management pointed to major partnerships and technology-led offerings. Chief Executive Officer Michael Miebach referenced programs such as the Apple Card and said the company continued to see healthy spending across customer groups.
Mastercard reported operating income of $4.9 billion, up 25% from the prior year. Operating margin expanded to 55.8%, up 3.2 percentage points.
Operating expenses increased 10% to $3.9 billion, with the company citing higher administrative costs. However, Mastercard said government grants linked to late-2025 deals partially offset that increase.
The effective tax rate rose to 16.7% from 14.1% a year earlier. Mastercard attributed the change to tax rules affecting Singapore operations. Adjusted results also increased. Adjusted net income reached $4.3 billion, while adjusted diluted EPS was $4.76, up 22% and 25%, respectively.
For the entire year, Mastercard reported net revenue of $32.8 billion, up 16% or 15% currency-neutral. Operating income totaled $18.9 billion, while operating margin expanded to 57.6%. Net income reached $15.0 billion for the year. Diluted EPS came in at $16.52, up 19% from 2024.
The company also highlighted scale and usage. Mastercard ended 2025 with 3.7 billion cards issued globally across its brands. Shareholder returns remained sizable in the quarter. Mastercard repurchased 6.4 million shares in Q4 for $3.6 billion and paid $684 million in dividends, returning about $4.3 billion total.
In addition, the company reported more buybacks after quarter-end. By January 26, Mastercard had repurchased 1.3 million more shares for $715 million, leaving $16.7 billion available under current approvals.
Mastercard’s leadership said it saw continued momentum entering 2026, supported by healthy consumer and business spending and ongoing demand for its digital solutions.