Mastercard Inc (NYSE: MA) reported fiscal first-quarter results on Thursday. The company reported quarterly net revenues of $7.25 billion, up 14% year-over-year and 17% Y/Y on a neutral currency basis, beating the analyst consensus estimate of $7.12 billion.

Adjusted EPS rose 13% Y/Y to $3.73, exceeding the analyst consensus estimate of $3.57.

Payment network net revenue rose 13% Y/Y (+16% Y/Y on a currency-neutral basis), led by growth in gross dollar volume (+9% Y/Y), cross-border volume (+15% Y/Y), and switched transactions (+9% Y/Y). 

Also Read: Mastercard Bets On Cross-Border Payments With $300 Million Corpay Deal

Value-added services and solutions net revenue rose 16% and 18% on a currency-neutral basis, driven by demand for its consumer acquisition and engagement and business and market insight services, the scaling of its security and digital and authentication solutions, and pricing.

Mastercard's switched volume, reflecting the value of transactions on its network, rose by 11% year over year. Cross-border volume, which indicates travel demand by tracking spending on cards outside their country of issue, increased by 15% in the same period.

The adjusted operating margin expanded 50 bps Y/Y to 59.3%. The net income climbed 12% on a currency-neutral basis to $3.3 billion, while the adjusted net income improved by 13% on a currency-neutral basis to $3.4 billion.

As of March 31, 2025, the company had issued 3.5 billion Mastercard and Maestro branded cards to customers.

During the quarter, Mastercard repurchased 4.7 million shares for $2.5 billion and paid $694 million in dividends. As of March 31, 2025, cash and cash equivalents stood at $9.98 billion.

Mastercard CEO Michael Miebach said, "Our steady drumbeat of innovation continues. We launched Mastercard Agent Pay, our new Agentic Payments Program, and will work with companies like Microsoft and OpenAI. And we announced a strategic partnership with Corpay to deliver an enhanced suite of corporate cross-border payment solutions."

He added, "While there is uncertainty in the world, we've built a diversified, resilient business model and proven strategy that enables us to effectively navigate various economic environments."

On Tuesday, Visa Inc (NYSE:V) reported second-quarter EPS of $2.76, which beat the analyst consensus estimate of $2.68. Quarterly revenue came in at $9.59 billion, up 9.2% Y/Y, which beat the analyst consensus estimate of $9.55 billion.

Q2 and FY25 Outlook: Mastercard expects net revenue growth in the mid-teens digits for the second quarter versus the $7.78 billion consensus estimate. The company now expects low teen-digit revenue growth for fiscal 2025 (prior low double digits) versus the $31.51 billion consensus estimate. 

Price Action: MA stock is down 0.68% at $544.36 at the last check on Thursday.

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