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Mastercard profit and revenue top estimates on spending resilience

MasterCard app logo is displayed on a smartphone in an arranged photograph taken in St. Thomas, U.S.V.I., on Friday, Jan. 22, 2021.   (Gabby Jones/Bloomberg)
By Paige Smith Bloomberg

Mastercard Inc. reported third-quarter earnings that beat analysts’ estimates as consumer and corporate spending remained robust.

Adjusted net income for the three-month period was $4 billion, or $4.38 per share. That topped the $3.91 billion, or $4.31 per share, estimated by Wall Street analysts.

The earnings performance was “driven by healthy consumer and business spending and continued robust performance of our differentiated services,” Chief Executive Officer Michael Miebach said in a statement Thursday.

Still, Chief Financial Officer Sachin Mehra said on a call with analysts that there “continues to be some ongoing geopolitical and economic uncertainty.”

The firm still anticipates net revenue for 2025 will grow by a percentage in the “high end of mid-teens,” the same prediction the company gave in July, according to a presentation on Mastercard’s website.

Net revenue was $8.6 billion for the third quarter, also beating analyst estimates.

Shares of the firm, up 5% this year, were little changed at 10:15 a.m. in New York.

Mastercard’s payment-network rival, Visa Inc., also reported a strong quarter earlier this week, similarly highlighting spending resilience.

Mastercard is in advanced talks to buy the crypto-infrastructure startup Zero Hash for as much as $2 billion, Fortune reported Wednesday. Miebach said on the call that the firm won’t be commenting on “market rumors.”

Mastercard will be the exclusive payment network partner for Nu Holdings Ltd.’s consumer card program when it launches in the US, Miebach said on the call. Sao Paulo-based Nubank, as the company is known, has applied for a national bank charter in the US.

Capital One Financial Corp. has started to migrate its debit cards off of Mastercard’s payment network and onto its own Discover network, Mehra said on the call. He reiterated that the net revenue impact won’t be material this year, and effects in 2026 will likely be offset by some contractual obligations between the two financial firms.