Slides
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Mastercard Incorporated Second Quarter 2026 Financial Results Conference Call July 30, 2026
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©2026 Mastercard July 30, 2026 2 Business Update Michael Miebach: Financial Overview Business Highlights
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©2026 Mastercard July 30, 2026 3 2nd Quarter Selected Financial Performance ($ in millions, except per share data) 2Q 26 2Q 25 YOY Growth Non-GAAP Non-GAAP As adjusted Currency-neutral Net revenue $ 9,277 $ 8,133 14% 12% Adjusted operating expenses 3,608 3,260 11% 10% Adjusted operating income 5,670 4,873 16% 14% Adjusted operating margin 61.1 % 59.9 % 1.2 ppt 0.8 ppt Adjusted net income $ 4,453 $ 3,769 18% 16% Adjusted diluted EPS $ 5.04 $ 4.15 21% 19% Adjusted effective tax rate 20.0% 20.9 % Note: See Appendix A for Non-GAAP reconciliation. Figures may not sum due to rounding. Turning to page 3, which shows our financial performance for the second quarter on a currency-neutral basis, excluding, where applicable, special items and the impact of gains and losses on our equity investments. • Net Revenue was up 12%, reflecting continued growth in our payment network and our value-added services and solutions, with minimal impact from dispositions. • Operating Expenses increased 10%, including a 1 ppt benefit from dispositions. • And, Operating Income was up 14%. • Net Income and EPS increased 16% and 19% respectively, driven primarily by the strong operating income growth in the quarter. • EPS was $5.04 cents, which includes a 14 cent contribution from share repurchases. • During the quarter, we repurchased $4.9 billion worth of stock and approximately $700 million of additional stock through July 27, 2026.
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©2026 Mastercard July 30, 2026 4 Now turning to page 4 where I'll speak to the growth rates of our key volume drivers for the second quarter on a local currency basis. Worldwide Gross Dollar Volume, or GDV, increased by 8% year-over-year. • In the U.S., GDV increased by 6%, with Credit growth of 10%, and Debit growth of 1%. As a reminder, the Capital One Debit portfolio migration was basically complete in Q1. Excluding the impacts from that migration, our U.S. Debit GDV growth would have been 8%. • Outside of the U.S., GDV increased 9%, with Credit growth of 9%, and Debit growth of 10%. Cross-border volume increased 12% globally for the quarter reflecting continued growth in both travel and non-travel related cross-border spending. $2,640 $2,881 $813 $858 $1,826 $2,024 $1,216 $1,331 $418 $458 $798 $874 $1,424 $1,550 $395 $400 $1,029 $1,150 Credit Debit / Prepaid 2Q25 2Q26 2Q25 2Q26 2Q25 2Q26 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 Worldwide United States Rest of World 8% Growth 6% Growth 9% Growth Notes: Growth rates are shown in local currency. Figures may not sum due to rounding. ($ in billions) 2nd Quarter Gross Dollar Volume (GDV)
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©2026 Mastercard July 30, 2026 5 Turning to page 5, Switched transactions grew 9% year-over-year in Q2. We continue to drive contactless penetration, which in Q2 stood at 80% of all in-person switched purchase transactions. This is up 5 ppt since the same period last year. And token penetration reached over 40% of all switched transactions this quarter. In addition, card growth was 5%. Globally, there are 3.7 billion Mastercard and Maestro-branded cards issued. 2nd Quarter Switched Transactions and Cards Transactions (in billions) 43.5 47.4 2Q25 2Q260 10 20 30 40 50 Cards (in millions) 3,562 3,734 3,230 3,463 332 271 Mastercard Cards Maestro Cards 2Q25 2Q260 1,000 2,000 3,000 4,000 Switched Transactions Cards 9% Growth 5% Growth Note: Figures may not sum due to rounding.
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©2026 Mastercard July 30, 2026 6 Growth Payment Network1 Value-added Services and Solutions Total Net Revenue GAAP 10% 20% 14% Currency-neutral 8% 18% 12% 1 Payment Network is presented net of rebates and incentives of $5,997 million and $4,923 million for Q2'26 and Q2'25, respectively, which grew year-over-year by 22%, or 20% on a currency-neutral basis. 2nd Quarter Net Revenue ($ in millions) $4,945 $3,188 $8,133 $5,451 $3,826 $9,277 2Q25 2Q26 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 Turning to Slide 6 for a look into our Net Revenue growth rates for the second quarter, discussed on a currency-neutral basis. • Payment Network net revenue increased 8%, primarily driven by domestic and cross-border transaction and volume growth, as well as pricing. It also includes growth in rebates and incentives. • Value-added Services and Solutions net revenue increased 18%. This includes a minimal drag from dispositions. The increase was driven primarily by: • Growth in our underlying drivers, • Strong demand across Security Solutions, Consumer Acquisition & Engagement, Digital & Authentication, and Business & Market Insights, • And pricing.
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©2026 Mastercard July 30, 2026 7 Domestic Assessments Cross-Border Assessments Transaction Processing Assessments Other Network Assessments Increase/(Decrease) 13% 21% 14% 25% Increase/(Decrease) Currency-neutral 10% 20% 12% 23% 2nd Quarter Key Metrics related to the Payment Network ($ in millions) $2,789 $2,848 $3,971 $260 $3,154 $3,460 $4,508 $326 2Q25 2Q26 $0 $1,000 $2,000 $3,000 $4,000 $5,000 Now let’s turn to page 7 to discuss key metrics related to the Payment Network. Again, all growth rates are described on a currency-neutral basis unless otherwise noted. Looking quickly at each key metric: • Domestic Assessments were up 10%, while worldwide GDV grew 8%. The 2 ppt difference is primarily driven by pricing. • Cross-Border Assessments increased 20%, while cross-border volumes increased 12%. The 8 ppt difference is driven primarily by pricing in international markets and mix. • Transaction Processing Assessments were up 12%, while switched transactions grew 9%. The 3 ppt difference is primarily due to favorable mix and pricing, partially offset by lower revenue from FX volatility. • Other Network Assessments were $326 million this quarter.
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©2026 Mastercard July 30, 2026 8 2nd Quarter Adjusted Operating Expenses $2,766 $213 $281 $3,260$3,081 $217 $309 $3,608 2Q25 2Q26 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 ($ in millions) Growth General & Administrative Advertising & Marketing Depreciation & Amortization Adjusted Operating Expenses Non-GAAP 11% 2% 10% 11% Currency-neutral 11% 1% 10% 10% Note: See Appendix A for Non-GAAP reconciliation. Figures may not sum due to rounding. Moving on to page 8, you can see that on a non-GAAP, currency-neutral basis, excluding special items, Total Adjusted Operating Expenses increased 10%, which includes a 1 ppt benefit from dispositions. The growth in Operating Expenses was primarily driven by spending to drive the execution of our strategic priorities, including initiatives to further harden our infrastructure, geographic expansion and product innovation.
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©2026 Mastercard July 30, 2026 9 Turning to page 9, let me comment on the operating metric trends for Q2 and the first four weeks of July. Starting with operating metrics for Q2 on a sequential basis: • Switched metrics were generally in line with Q1 and underlying spend remained stable. ◦ Of note, excluding Capital One debit, on a like-for-like basis, US switched volume growth was 10%, or 2 ppt higher sequentially. This increase was driven by higher spend on fuel and overall strong consumer and business spending. • Moving to our cross-border metrics, our overall cross-border volume growth remained healthy at 12% in the second quarter. ◦ Cross Border card not present ex Travel remained strong at 20%, benefitting from increased card not present spend from Venezuela and the timing of large retail promotional events. ◦ And, while cross-border travel was down sequentially, relative to the April metrics we discussed on our last earnings call, we saw improved growth in the quarter due to lower impacts from the developments in the Middle East and timing of holidays. As we look at the first four weeks of July, our metrics remain relatively stable and strong. – Looking specifically at CNP ex-travel, let’s focus on July compared to June. The sequential decline is primarily driven by timing including the large retail promotional events that happened in June this year as compared to July last year and mix of days. Business Update Through July 28th 1. Mastercard-branded programs only; on a local currency basis. Note: Our key drivers above now include Venezuela cross-border activity, as applicable. Year-over-year growth % 2026 Q1 Apr May Jun Q2 Jul 28 MTD Switched volume1 9% 9% 9% 11% 9% 9% United States 5% 6% 5% 8% 6% 6% Worldwide less U.S. 12% 11% 11% 12% 12% 11% Switched transactions 9% 9% 9% 9% 9% 9% Cross-border volume1 13% 9% 12% 14% 12% 11% Intra-Europe 14% 11% 13% 13% 12% 10% Other Cross-border 12% 7% 12% 15% 11% 12% XB CNP ex travel 19% 19% 18% 23% 20% 16% XB Travel (CP + CNP travel) 8% 2% 8% 7% 6% 8%
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©2026 Mastercard July 30, 2026 10 Looking Ahead Further thoughts on 2026
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Appendices
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©2026 Mastercard July 30, 2026 12 Appendix A Non-GAAP Reconciliation ($ in millions, except per share data) Note: Figures may not sum due to rounding. ** Not applicable. 1 Represents Q2'26 net pre-tax loss of $2 million and Q2'25 net pre-tax gain of $4 million primarily related to unrealized fair market value adjustments on marketable and nonmarketable equity securities. 2 Represents Q2'26 pre-tax charges of $82 million which includes a legal provision associated with the ATM non-discrimination rule surcharge complaints, a change in estimate related to the claims of merchants who opted out of the U.S. merchant class litigation and provisions associated with various other legal matters. 3 Represents Q2'25 pre-tax charges of $96 million primarily due to a legal provision associated with the ATM non-discrimination rule surcharge complaints. Three Months Ended June 30, 2026 Operating expenses Operating income Operating margin Other income (expense) Effective income tax rate Net income Diluted earnings per share Reported - GAAP $ 3,690 $ 5,587 60.2 % $ (101) 20.0 % $ 4,388 $ 4.97 (Gains) losses on equity investments 1 ** ** ** 2 (0.1) % 5 0.01 Litigation provisions 2 (82) 82 0.9 % ** 0.1 % 59 0.07 Adjusted - Non-GAAP $ 3,608 $ 5,670 61.1 % $ (100) 20.0 % $ 4,453 $ 5.04 Three Months Ended June 30, 2025 Operating expenses Operating income Operating margin Other income (expense) Effective income tax rate Net income Diluted earnings per share Reported - GAAP $ 3,356 $ 4,777 58.7 % $ (105) 20.8 % $ 3,701 $ 4.07 (Gains) losses on equity investments 1 ** ** ** (4) 0.1 % (5) (0.01) Litigation provisions 3 (96) 151 1.2 % ** 0.1 % 73 0.08 Adjusted - Non-GAAP $ 3,260 $ 4,873 59.9 % $ (109) 20.9 % $ 3,769 $ 4.15
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©2026 Mastercard July 30, 2026 13 Note: Figures may not sum due to rounding. ** Not applicable. 1 Represents Q2'26 net pre-tax loss of $2 million and Q2'25 net pre-tax gain of $4 million primarily related to unrealized fair market value adjustments on marketable and nonmarketable equity securities. 2 Represents Q2'26 pre-tax charges of $82 million which includes a legal provision associated with the ATM non-discrimination rule surcharge complaints, a change in estimate related to the claims of merchants who opted out of the U.S. merchant class litigation and provisions associated with various other legal matters. 3 Represents Q2'25 pre-tax charges of $96 million primarily due to a legal provision associated with the ATM non-discrimination rule surcharge complaints. 4 Represents the translational and transactional impact of currency and the related impact of our foreign exchange derivative contracts designated as cash flow hedging instruments (specifically those that manage the impact of foreign currency variability on anticipated revenues and expenses). Appendix A (continued) Non-GAAP Reconciliation Three Months Ended June 30, 2026 as compared to the Three Months Ended June 30, 2025 Increase/(Decrease) Operating expenses Operating income Operating margin Effective income tax rate Net income Diluted earnings per share Reported - GAAP 10 % 17 % 1.5 ppt (0.8) ppt 19 % 22 % (Gains) losses on equity investments 1 ** ** ** (0.1) ppt — % — % Litigation provisions 2,3 1 % (1) % (0.3) ppt 0.1 ppt (1) % (1) % Adjusted - Non-GAAP 11 % 16 % 1.2 ppt (0.8) ppt 18 % 21 % Currency impact 4 (1) % (3) % (0.4) ppt (0.1) ppt (3) % (3) % Adjusted - Non-GAAP - currency-neutral 10 % 14 % 0.8 ppt (0.9) ppt 16 % 19 %
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©2026 Mastercard July 30, 2026 14 Appendix B Non-GAAP Reconciliation 2026 financial outlook Prior 2026 vs. 2025 Increase/(Decrease) Updated 2026 vs. 2025 Increase/(Decrease) Net Revenue Operating Expenses Net Revenue Operating Expenses Forecasted Growth - GAAP 1 High end of low double digits to low teens High end of high single digits Low teens High end of high single digits Litigation provisions 2 ** ~4% ** ~3% Restructuring charge 3 ** ~(1)% ** ~(1)% Non-GAAP Growth High end of low double digits to low teens Low double digits Low teens High end of low double digits Currency impact 4 ~(1.5)% (0.5-1)% ~(1)% (0.5-1)% Inorganic activity 5 ~0% 0.5-1% ~0% ~0% Non-GAAP Growth, currency-neutral, excluding inorganic activity High end of low double digits Low double digits High end of low double digits Low double digits ** Not applicable. 1 GAAP - FY2026 forecast versus FY2025 reported results. Full Year Special Items 2 Impact of FY2025 litigation provisions ($504M) and YTD Q2'26 litigation provisions ($82M). 3 Impact of Q1'26 restructuring charge of $202M as a result of a restructuring action primarily intended to enable reinvestment to support the realization of our long-term growth opportunities. Other Notes 4 Represents the projected translational and transactional impact of currency and the related impact of our foreign exchange derivative contracts designated as cash flow hedging instruments (specifically those that manage the impact of foreign currency variability on anticipated revenues and expenses). 5 Represents acquisitions and dispositions completed, or expected to be completed, after the beginning of 2025.
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©2026 Mastercard July 30, 2026 15 Appendix C Non-GAAP Reconciliation Third quarter 2026 financial outlook Q3'26 vs. Q3'25 Increase/(Decrease) Net Revenue Operating Expenses Forecasted Growth - GAAP 1 High end of low double digits High single digit Litigation provisions 2 ** ~3% Non-GAAP Growth High end of low double digits Low double digits Currency impact 3 ~0.5% 0-0.5% Inorganic activity 4 ~0% ~(0.5)% Non-GAAP Growth, currency-neutral, excluding inorganic activity High end of low double digits Low double digits ** Not applicable. 1 GAAP - Q3'26 forecast versus Q3'25 reported results. Third Quarter Special Items 2 Impact of Q3'25 litigation provisions ($83M). Other Notes 3 Represents the projected translational and transactional impact of currency and the related impact of our foreign exchange derivative contracts designated as cash flow hedging instruments (specifically those that manage the impact of foreign currency variability on anticipated revenues and expenses). 4 Represents acquisitions and dispositions completed, or expected to be completed, after the beginning of 2025.
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©2026 Mastercard July 30, 2026 16 Forward-Looking Statements This earnings presentation contains forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts may be forward-looking statements. When used in this earnings presentation, the words “believe”, “expect”, “could”, “may”, “would”, “will”, “trend” and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements that relate to the company’s future prospects, developments and business strategies. We caution you to not place undue reliance on these forward-looking statements, as they speak only as of the date they are made. Except for the company’s ongoing obligations under the U.S. federal securities laws, the company does not intend to update or otherwise revise the forward-looking information to reflect actual results of operations, changes in financial condition, changes in estimates, expectations or assumptions, changes in general economic or industry conditions or other circumstances arising and/or existing since the preparation of this earnings presentation or to reflect the occurrence of any unanticipated events. Many factors and uncertainties relating to our operations and business environment, all of which are difficult to predict and many of which are outside of our control, influence whether any forward- looking statements can or will be achieved. Any one of those factors could cause our actual results to differ materially from those expressed or implied in writing in any forward-looking statements made by Mastercard or on its behalf, including, but not limited to, the following factors: For additional information on these and other factors that could cause the company’s actual results to differ materially from expected results, please see the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K for the year ended December 31, 2025 and any subsequent reports on Forms 10-Q and 8-K. • regulation related to the payments industry (including regulatory, legislative and litigation activity with respect to interchange rates and surcharging) • the impact of preferential or protective government actions • regulation of privacy, data, AI, information security and the digital economy • regulation that directly or indirectly applies to us based on our participation in the global payments industry (including anti-money laundering, countering the financing of terrorism, economic sanctions and anti-corruption, account-based payments systems, and issuer and acquirer practices regulation) • the impact of changes in tax laws, as well as regulations and interpretations of such laws or challenges to our tax positions • potential or incurred liability and limitations on business related to any litigation or litigation settlements • the impact of competition in the global payments industry (including disintermediation and pricing pressure) • the challenges relating to rapid technological developments and changes • the challenges relating to operating a real-time account-based payments system and to working with new customers and end users • the impact of information security incidents, account data breaches or service disruptions • issues related to our relationships with our stakeholders (including loss of substantial business from significant customers, competitor relationships with our customers, consolidation amongst our customers, merchants’ continued focus on acceptance costs and unique risks from our work with governments) • the impact of global economic, political, financial and societal events and conditions, including adverse currency fluctuations and foreign exchange controls • reputational impact, including impact related to brand perception and lack of visibility of our brands in products and services • the impact of environmental, social and governance matters and related stakeholder reaction • the inability to attract and retain a highly qualified workforce, or maintain our corporate culture • issues related to acquisition integration, strategic investments and entry into new businesses • exposure to loss or illiquidity due to our role as guarantor as well as other contractual obligations and discretionary actions we may take • issues related to our Class A common stock and corporate governance structure