$MA · Mastercard Inc
Mastercard filed its Q3 2026 10-Q, reporting net revenue of $9.807B (+14% YoY), GAAP net income of $4.628B (+18%), and GAAP diluted EPS of $5.28 (+22%). Adjusted diluted EPS was $5.31. Operating margin expanded to 59.8% GAAP and 60.5% adjusted. The company repurchased $12.01B in stock over nine months, reducing diluted shares 3% to 876M.
- Net revenue rose 14% YoY to $9.807B, with payment network revenue at $5.749B and value-added services at $4.058B.
- GAAP diluted EPS of $5.28, up 22% from $4.34 a year ago; adjusted diluted EPS was $5.31.
- Operating margin expanded 0.9 ppt to 59.8% GAAP; adjusted operating margin reached 60.5%.
- Net income grew 18% YoY to $4.628B; nine-month net income reached $12.898B.
- Diluted share count fell 3% YoY to 876M, reflecting aggressive buybacks — $12.01B in treasury stock purchases over nine months.
Stock up 4.50% to $637.78 in regular trading, adding ~$24B in market cap on the $558.70B company. The 14% revenue growth and 22% EPS expansion reinforce Mastercard's premium multiple in a resilient consumer spending environment.
Mastercard's 22% EPS growth on 14% revenue gains, coupled with aggressive buybacks shrinking share count 3%, confirms the compounding earnings machine remains intact at scale.
Mastercard's 14% revenue growth and 59.8% GAAP operating margin continue to outpace most payments peers. Value-added services (+18.5% YoY) now represent 41% of net revenue, underscoring the shift beyond pure network economics.
Interest expense jumped 34% YoY to $250M for the quarter as debt rose to $22.19B long-term. Regulatory risk around interchange fees and the UK/EU litigation provisions remain active — $74M in litigation provisions this quarter.