NYSE: MA · Transaction & Payment Processing Services
Mastercard
Mastercard, based in Purchase, New York, runs a global payments network connecting consumers, banks, merchants, governments and businesses, and sells value-added services such as cybersecurity, fraud prevention, data analytics and open banking. It does not issue cards or lend; it earns fees on gross dollar volume, cross-border transactions and switched transactions — $10.6 trillion of GDV and 175.5 billion switched transactions in 2025. Net revenue rose 16% to $32,791 million: payment network $19,476 million and value-added services and solutions $13,315 million (+23%). With an operating margin of about 58%, net income reached $14,968 million. Mastercard repurchased $11.7 billion of stock and paid $2.8 billion of dividends in 2025. Its five largest customers made up 21% of revenue, and it faces a DOJ investigation of its U.S. debit business and remaining interchange claims in the U.K. and Europe.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 29, 2026 13:20 (SEC EDGAR) · Source 10-K filed: February 11, 2026
Built on10-K FY2025 · filed 2026-02-1110-Q (quarter ended 2026-09-30) · filed 2026-10-29Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 16.5%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 57.6%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +51.1 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 0.4x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.18x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 5 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 34.9x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.80
Higher than 83% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 98% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 97% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 27% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 20% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$661.42close on 2026-11-04
Market cap$591.24B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 34.9x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 76.3x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 29.9x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 2.9%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 0.5%
At FY2025 year-end: 34.6x
Earnings: trailing 12 months to 2026-09-30
At FY2025 year-end: 65.9x
Book value at FY2025 year-end
At FY2025 year-end: 25.9x
EBITDA for FY2025
At FY2025 year-end: 3.4%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$8.6B → $9.81B (vs. a year earlier)↑ +14.0%$8.6B → $9.81B (vs. a year earlier)
- Operating margin58.8% → 59.8% (vs. a year earlier)↑ +0.9 pts58.8% → 59.8% (vs. a year earlier)
- Net income$3.93B → $4.63B (vs. a year earlier)↑ +17.9%$3.93B → $4.63B (vs. a year earlier)
- Diluted EPS$4.34 → $5.28 (vs. a year earlier)↑ +21.7%$4.34 → $5.28 (vs. a year earlier)
- Cash$11.29B → $10.15B (vs. previous quarter-end)↓ −10.1%$11.29B → $10.15B (vs. previous quarter-end)
- Long-term debt$24.64B → $23.94B (vs. previous quarter-end)↓ −2.9%$24.64B → $23.94B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Oct 29, 2026.
Key changes
Q3 net revenue $9.8B, up 14%. Source sentence
Third quarter net revenue of $9.8 billion, an increase of 14%, as reported and on a currency-neutral basis
Gross dollar volume up 7%; purchase volume up 9%. Source sentence
Third quarter gross dollar volume up 7% and purchase volume up 9%, on a local currency basis
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- Mastercard Inc
- Headquarters
- PURCHASE, NY
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: MA
- Industry
- Transaction & Payment Processing Services
- CIK
- 1141391
Workforce (as of FY2025 year-end)
Employees
39,800
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 29–31 days after quarter end (Jan 29, 2026; Jan 30, 2025; Jan 31, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 29–31 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Oct 29, 2026 (+29 days) | Oct 29, 2026 10-Q (+29 days) |
| Q2 FY2026 | Jun 30, 2026 | Jul 30, 2026 (+30 days) | Jul 30, 2026 10-Q (+30 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 30, 2026 (+30 days) | Apr 30, 2026 10-Q (+30 days) |
| Q4 FY2025 | Dec 31, 2025 | Jan 29, 2026 (+29 days) | Feb 11, 2026 10-K (+42 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 30, 2025 (+30 days) | Oct 30, 2025 10-Q (+30 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 31, 2025 (+31 days) | Jul 31, 2025 10-Q (+31 days) |
| Q1 FY2025 | Mar 31, 2025 | May 1, 2025 (+31 days) | May 1, 2025 10-Q (+31 days) |
| Q4 FY2024 | Dec 31, 2024 | Jan 30, 2025 (+30 days) | Feb 12, 2025 10-K (+43 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 31, 2024 (+31 days) | Oct 31, 2024 10-Q (+31 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 31, 2024 (+31 days) | Jul 31, 2024 10-Q (+31 days) |
| Q1 FY2024 | Mar 31, 2024 | May 1, 2024 (+31 days) | May 1, 2024 10-Q (+31 days) |
| Q4 FY2023 | Dec 31, 2023 | Jan 31, 2024 (+31 days) | Feb 13, 2024 10-K (+44 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Payment network
Mastercard network
Credit, debit and prepaid card and digital payment processing.
Services
Cyber and fraud solutions
Fraud scoring and cyber threat intelligence incl. Recorded Future.
Services
Data, consulting and open banking
Analytics, loyalty, consulting and open banking services.
From the Form 10-K, FY2025.
U.S. and worldwide share of flagship products/services
The 10-K notes some competitors have more market share in certain jurisdictions but gives no Mastercard share figures.
Reviewed: Form 10-K (FY2025) · Form 10-Q (quarter ended 2026-09-30)
07
Recent strategic focusSite analysis
Recent developments.
Q3 2026
Net revenue $9.8B (+14%); operating margin 59.8%; net income $4.6B and EPS $5.28 (+22%); gross dollar volume +7% and purchase volume +9% (local currency). Mastercard highlighted agentic commerce and its new Global Money Platform through BVNK.
Source: Q3 2026 earnings release
Services growth
Value-added services and solutions revenue rose 23% to $13,315M in 2025.
Source: Form 10-K (FY2025)
Capital return
Repurchased 21.1M shares for $11.7B and paid $2.8B of dividends in 2025.
Source: Form 10-K (FY2025)
Cyber intelligence
Combining network visibility with Recorded Future’s threat intelligence to prevent payment fraud.
Source: Form 10-K (FY2025)
Capex ÷ D&A (FY2025)
0.43x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$489M ÷ $1,143M = 0.43x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
M&A spend (6-year total)
$8.25B
Latest year: $0
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $339M in FY2020 to $489M in FY2025
- Capex
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$32.79B
As reported in the 10-K
Revenue CAGR (5 years)
+16.5%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($32,791M ÷ $15,301M) ^ (1÷5) − 1 = 16.5%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
57.6%▲favorable
+4.8pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$18,897M ÷ $32,791M × 100 = 57.6%
ROE (FY2025)
210.5%▲favorable
6-year average: 157.5%
As reported in the 10-K
P/B (FY2025 end)
65.88x
formulafiscal year-end closing price ÷ book value per share
e.g.$570.88 ÷ $8.67 = 65.88x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
25.9x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($510,310M + $19,000M − $10,566M) ÷ ($18,897M + $1,143M) = 25.9x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +16.5% a year over 5 years (strong growth)
From $15.3B in FY2020 to $32.79B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: 52.8% → 57.6%
How much operating profit is left per $100 of revenue. It moved +4.8 points over 5 years — pricing power, cost control, and product mix all show up here.
- ▼
Equity ratio is 14.3% (relatively heavy reliance on debt)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 157.5% over 6 years (latest: 210.5%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
- Payment network (assessments, switching, cross-border)
- Value-added services and solutions (security, analytics, open banking, consulting)
06 · what it draws on
Key resources
- About 39,800 employees (≈70% outside the U.S.)
- Global payments network and the Mastercard brand
- Data, cybersecurity and AI capabilities (incl. Recorded Future)
02 · why customers buy
Value propositions
- A global payments network plus services (security, data, loyalty, personalization) that differentiate its payment products.
04 · how it keeps them
Customer relationships
- Agreements with issuers; a loyalty ecosystem integrated into its network.
03 · how it reaches them
Channels
- Banks and partners that issue cards and acquire merchants; digital partners.
01 · who it serves
Customer segments
- Banks and financial institutions (five largest ≈21% of revenue)
- Merchants, governments and digital partners
09 · where money goes
Cost structure
FY2025, share of revenue ($32.79B)
- Selling, general & administrative34.5%
- Other operating costs (incl. cost of goods sold)7.9%
Operating profit left: 57.6% of revenue. Depreciation & amortization (inside the costs above): $1.14B. Capital spending: $489M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Payment network $19,476M (2025)
- Value-added services and solutions $13,315M
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Operates the network that authorizes, clears and settles card and digital payments between issuing and acquiring banks, charging fees based on volume and transactions, and sells data, security, consulting and open banking services.
01 what it draws on
Inputs & resources
- About 39,800 employees (≈70% outside the U.S.)
- Global payments network and the Mastercard brand
- Data, cybersecurity and AI capabilities (incl. Recorded Future)
02 what it does
Activities
- Payment network (assessments, switching, cross-border)
- Value-added services and solutions (security, analytics, open banking, consulting)
03 who it serves
Customers
- Banks and financial institutions (five largest ≈21% of revenue)
- Merchants, governments and digital partners
04 how money comes in
How it earns
- Payment network $19,476M (2025)
- Value-added services and solutions $13,315M
How the business makes money
- GDV $10.6T (+9%), cross-border volume +15%, switched transactions 175.5B (+10%) in 2025.
- Net revenue up 16% (15% currency-neutral).
- Operating margin about 58%.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Mastercard receives some government grants and is audited as a government contractor.
Government funding & tax credits
Government grants
Received multi-year government grants in 2025 for investments in selected locations.
Supports the businessTouches: Inputs & resourcesSource: Form 10-K (FY2025)
Government as customer
Government contractor audits
As a government contractor, it is subject to audits of contract performance and compliance.
Constrains the businessTouches: CustomersSource: Form 10-K (FY2025)
Regulated prices & reimbursement
Interchange administration
Administers collection and remittance of interchange fees through settlement.
Supports and constrainsTouches: How it earnsSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Payment network
19,476 (59%)Value-added services and solutions
13,315 (41%)
Source: Form 10-K (FY2025) Net revenue by component; one reportable segment. Total $32,791M.
10
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
11
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Banks, merchants, governments and digital partners.
Named by the company
The five largest customers accounted for about 21% of 2025 net revenue; none is named.
Suppliers
Technology and data center providers.
Named by the company
No material supplier is named.
12
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
The 10-K names other payment networks it competes with worldwide.
Competitors named in the 10-K
Payment networks
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
13
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 15,301 | 18,884 | 22,237 | 25,098 | 28,167 | 32,791 |
| Operating income | 8,081 | 10,082 | 12,264 | 14,008 | 15,582 | 18,897 |
| Pretax income | 7,760 | 10,307 | 11,732 | 13,639 | 15,254 | 18,578 |
| Net income (attributable) | 6,411 | 8,687 | 9,930 | 11,195 | 12,874 | 14,968 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 23.4% | 17.8% | 12.9% | 12.2% | 16.4% |
| Operating margincalcoperating income ÷ revenue × 100 | 52.8% | 53.4% | 55.2% | 55.8% | 55.3% | 57.6% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 41.9% | 46.0% | 44.7% | 44.6% | 45.7% | 45.6% |
| Balance sheet ($M) | ||||||
| Total assets | 33,584 | 37,669 | 38,724 | 42,448 | 48,081 | 54,157 |
| Total equity | 6,488 | 7,383 | 6,356 | 6,975 | 6,515 | 7,746 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 12,672 | 13,901 | 14,023 | 15,681 | 18,226 | 19,000 |
| Equity ratio | 19.0% | 19.4% | 16.3% | 16.3% | 13.5% | 14.3% |
| ROE | 100.3% | 126.8% | 145.9% | 169.3% | 191.9% | 210.5% |
| Cash flow ($M) | ||||||
| Operating CF | 7,224 | 9,463 | 11,195 | 11,980 | 14,780 | 17,648 |
| Investing CF | -1,879 | -5,272 | -1,470 | -1,351 | -3,402 | -1,362 |
| Financing CF | -2,152 | -6,555 | -10,328 | -9,488 | -10,836 | -14,179 |
| Free cash flowcalccash flow from operations − capital expenditures | 6,885 | 9,056 | 10,753 | 11,609 | 14,306 | 17,159 |
| Cash and equivalents | 10,113 | 7,421 | 7,008 | 8,588 | 8,442 | 10,566 |
| Per share & other | ||||||
| EPS ($) | 6.37 | 8.76 | 10.22 | 11.83 | 13.89 | 16.52 |
| BVPS ($) | 6.52 | 7.53 | 6.65 | 7.46 | 7.13 | 8.67 |
| Dividend per share ($) | 1.64 | 1.81 | 2.04 | 2.37 | 2.74 | 3.15 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 25.7% | 20.7% | 20.0% | 20.0% | 19.7% | 19.1% |
| P/E (x) | 56.0 | 41.0 | 34.0 | 36.1 | 37.9 | 34.6 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 41.3 | 33.2 | 26.1 | 27.4 | 29.8 | 25.9 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 54.75 | 47.69 | 52.30 | 57.14 | 73.82 | 65.88 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-30 | $9.81B+14.0% | $5.86B+15.8% | $4.63B+17.9% | $5.28 |
| 2026-06-30 | $9.28B+14.1% | $5.59B+17.0% | $4.39B+18.6% | $4.97 |
| 2026-03-31 | $8.4B+15.8% | $4.91B+18.3% | $3.88B+18.4% | $4.35 |
| 2025-12-31 † | $8.81B+17.6% | $4.91B+24.7% | $4.06B+21.5% | — |
| 2025-09-30 | $8.6B | $5.06B | $3.93B | $4.34 |
| 2025-06-30 | $8.13B | $4.78B | $3.7B | $4.07 |
| 2025-03-31 | $7.25B | $4.15B | $3.28B | $3.59 |
| 2024-12-31 † | $7.49B | $3.94B | $3.34B | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
14
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
60.2%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$18,897M × (1 − 18%) ÷ $25,744M × 100 = 60.2%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
9.12%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $510.31B ÷ ($510.31B + $19B) = 96.4%
e.g.Debt weight: $19B ÷ ($510.31B + $19B) = 3.6%
e.g.WACC: 9.4% × 96.4% + 3.6% × (1 − 18%) × 3.6% = 9.12%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 7.5%–11.1% and ROIC − WACC runs +49.0 to +52.7 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 9.12% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.80 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 9.35%
- Cost of debt
- 3.58%
- Tax rate
- 18% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 96% : 4%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 9.12%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.80 (price-derived adjusted beta. Raw β 0.69, R² 0.25, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.694 + 0.33 = 0.795
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.8 × 5.5% = 9.4%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
15
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
6.3%
Perpetual FCF growth: g = r − FCF ÷ EV = 9.1% − 2.9%
Past FCF growth (FY2020–FY2025)
+20.0%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
+16.5%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $17.16B (operating CF − capex); enterprise value $599.68B = market cap $591.24B (latest close, 2026-11-04) + debt $19B − cash and short-term investments $10.57B; r = WACC of 9.1% using this page’s default assumptions (β 0.80, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$612.82B
FCF $17.16B ÷ (9.1% − 6.3%)
Theoretical ÷ actual enterprise value
1.02x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 7.1% | 8.1% | 9.1% | 10.1% | 11.1% |
|---|---|---|---|---|---|
| 0% | 0.40x | 0.35x | 0.31x | 0.28x | 0.26x |
| 2% | 0.56x | 0.47x | 0.40x | 0.35x | 0.31x |
| 4% | 0.92x | 0.70x | 0.56x | 0.47x | 0.40x |
| 6% | 2.60x | 1.36x | 0.92x | 0.70x | 0.56x |
| 8% | — | 28.61x | 2.60x | 1.36x | 0.92x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
16
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.12x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -5.2%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 102%
Most profit comes from core operations.
- ✓
Days sales outstanding: 63 → 47 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$17,648M ÷ $14,968M = 1.18x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$18,897M ÷ $18,578M × 100 = 102%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($3,773M + $4,609M) ÷ 2 ÷ $32,791M × 365 = 47 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
17
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else — Class A shares, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 88.9%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 11.1%
- Directors & officers (voting power)
- —
- Institutional-ownership rank
- 209 of 416
- Beta (adjusted)
- 0.80
of Class A shares
individuals and other non-13F holders
not stated in the proxy
1 = most institutional; 50% of covered companies have more
above 1 = swings more than the market
- 773.0M shares reported by 3,611 13F filers ÷ 869.5M Class A shares outstanding on 2026-07-27. Option positions are excluded.
- Only the listed Class A shares are counted; other share classes (often held by founders) are not in this figure.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table (percentage computed from the group’s share count ÷ shares outstanding); includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-04-27 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-27)
18
Strengths & weaknessesSite analysis
Strengths
1. Exceptional margins
Operating income of $18,897M on $32,791M of net revenue in 2025.
Evidence: Form 10-K (FY2025)
2. Fast-growing services
Value-added services revenue grew 23% in 2025.
Evidence: Form 10-K (FY2025)
3. Large capital returns
$11.7B of buybacks and $2.8B of dividends in 2025; dividend rose every year from $1.64 (2020) to $3.15 (2025).
Evidence: Form 10-K (FY2025)
Weaknesses
1. Customer concentration
Five largest customers generated about $6.9B (21%) of 2025 net revenue.
Evidence: Form 10-K (FY2025)
2. Regulatory scrutiny
DOJ civil investigative demand on U.S. debit and an EU investigation into network fees.
Evidence: Form 10-K (FY2025) — Note 19, Legal and Regulatory Proceedings
3. Thin equity
Equity of $7.7B versus $19.0B of debt after years of buybacks.
Evidence: Form 10-K (FY2025)
19
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
34.6x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
0.55%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
19%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
3.4%
(Operating CF − capex) ÷ market cap
1. Digital payments growth
Volume growth from the shift to electronic payments.
- What has to hold
- Cash keeps declining.
- The other side
- Regulation of fees.
Evidence: Form 10-K (FY2025)
2. Compounding returns
High margins and buybacks.
- What has to hold
- Growth continues.
- The other side
- Litigation and regulatory costs.
Evidence: Form 10-K (FY2025)
Shares are Class A plus Class B outstanding; book value per share uses total equity.
20
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
14.1x
$10.57B vs. $749M
Interest coverage (operating income ÷ interest expense)
27.8x
$18.9B vs. $680M
Free cash flow ÷ dividends paid
6.2x
$17.16B vs. $2.76B (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | No decline in the record | — |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Steady growth
Net revenue rose every year from $15,301M (2020) to $32,791M (2025).
Source: Form 10-K (FY2025)
21
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Mastercard’s disclosed legal and regulatory matters include U.S. merchant interchange litigation and settlements, about £0.3 billion of unresolved U.K. and Pan-European merchant claims, a DOJ civil investigative demand on its U.S. debit program, and a European Commission investigation into network fees.
4 open matters (1 flagged as major)
DOJ investigation of U.S. debit
PendingGovernment investigationMajorU.S. DOJ
Civil investigative demand from the DOJ Antitrust Division regarding a potential Sherman Act violation, focused on the U.S. debit program and competition with other networks; Mastercard is cooperating.
Source: Form 10-K (FY2025) — Note 19, Legal and Regulatory Proceedings
U.K. and Pan-European merchant interchange claims
PendingAntitrustMerchants v. Mastercard
Merchants claim damages over interchange; after settlements and judgments, about £0.3B (≈$0.4B) of claims remain in litigation.
- Amounts
- ≈£0.3 billion remaining
Source: Form 10-K (FY2025) — Note 19, Legal and Regulatory Proceedings
European Commission investigation
PendingGovernment investigationEuropean Commission
2024 request for information on alleged anticompetitive practices of card scheme services in the EU/EEA, focused on network fees.
Source: Form 10-K (FY2025) — Note 19, Legal and Regulatory Proceedings
U.S. merchant class litigation
PendingAntitrustU.S. merchants v. Visa and Mastercard
Long-running U.S. merchant interchange class litigation, largely resolved through settlements; Mastercard has settled with all but two opt-out plaintiffs and its accrual fell to $156 million at September 30, 2026 from $637 million at year-end. New putative class actions followed in 2026: in April, merchants in the Damages Class sought damages for post-2019 credit interchange (a court barred those claims in September; plaintiffs appealed to the Second Circuit), and in September, merchants outside the class filed a separate suit.
Source: Form 10-Q (quarter ended 2026-09-30) — Legal and Regulatory Proceedings
Company statement: Other proceedings are described as ordinary-course and not expected to be material.
Based on Form 10-K (FY2025) — Note 19, Legal and Regulatory Proceedings, reviewed 2026-10-29. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
22
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Law & regulation
Interchange and network regulation
- Company disclosure (summarized from the 10-K)
- Regulation of interchange, routing and network fees, and antitrust investigations in the U.S. and EU.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood High
- 2Competition & technology shift
Competition
- Company disclosure (summarized from the 10-K)
- Competes with Visa, American Express, JCB, China UnionPay, Discover, debit networks and new technologies incl. digital currencies.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 3Customer/supplier concentration
Large customers
- Company disclosure (summarized from the 10-K)
- Loss of a major issuer’s card programs could reduce revenue.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Information security
Cyberattacks
- Company disclosure (summarized from the 10-K)
- A breach of the network would damage trust.
- Company’s stated mitigation
- We engage in many efforts to mitigate information security challenges, including maintaining an information security program, an enterprise resilience program and insurance coverage, as well as regularly testing our systems to address potential vulnerabilities.
- This site’s assessment
- Impact High / Likelihood Low
- 5Geopolitics & supply chain
Cross-border and geopolitics
- Company disclosure (summarized from the 10-K)
- Cross-border revenue is sensitive to travel and geopolitical events.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
23
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (1)
• Uncertain global trade policies and related government actions (including those related to tariffs), which could have an adverse impact on our business (including with respect to consumer and business spending) and relationships with stakeholders
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 11, 2026 ↗ with the 10-K filed Feb 12, 2025 ↗.
24
What to watch going forwardSite analysis
- DOJ debit investigation and EU fee investigation.
- Value-added services growth.
- Cross-border volumes.
- U.S. merchant litigation and legislation.
25
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 29, 2026 13:20 (SEC EDGAR) · Source 10-K filed: February 11, 2026
Built on10-K FY2025 · filed 2026-02-11Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Mastercard’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.