MW Mastercard earnings show robust spending - and send an upbeat message for Visa investors

By Emily Bary

Mastercard boosted its guidance for the year, suggesting to one analyst that Visa's forecast is 'overly conservative'

One thing is clear at a high level after the latest earnings results from the biggest payment-technology companies: Consumers are still spending despite an uncertain economic environment.

Mastercard Inc. $(MA)$ saw gross dollar volume rise 9% in the second quarter, consistent with what was seen in the first quarter, and the company's financial results topped expectations.

The company was the last of the big three card-oriented players to post its June-quarter numbers. Results from American Express Co. $(AXP.AU)$ and Visa Inc. (V) also showed stability.

See also: American Express earnings show healthy spending - including on these fancy categories

Mastercard's report, meanwhile, included a hike to the company's guidance. Management now expects its revenue growth rate for the year to be at the "high end of mid-teens," whereas the company previously expected a low-teens rate.

While Mastercard raised its outlook, Visa didn't when it reported earlier this week. Mizuho analyst Dan Dolev said that Mastercard's move, "amid macro uncertainty, reinforces our view that [Visa's] guide ... is overly conservative."

Shares of Mastercard were up about 1% in Thursday's premarket trading.

Chief Executive Michael Miebach said in a release that Mastercard's "momentum of deal wins continued this quarter," and he specifically called out "the extension of our exclusive partnership with American Airlines."

Net revenue was up 17% in the second quarter, to $8.13 billion, while analysts tracked by FactSet were modeling $7.93 billion. Adjusted earnings per share amounted to $4.15, whereas analysts were looking for $4.03.

"We believe Mastercard benefits from strong discretionary demand given its credit skew and robust cross-border business," William Blair analyst Andrew Jeffrey said in a note to clients.

Mastercard shares are up about 6% so far this year, which Jeffrey flagged was about 5 percentage points behind Visa's stock gain. "We contend that a strong global economy will power a catch-up trade," he wrote.

-Emily Bary

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July 31, 2025 09:14 ET (13:14 GMT)

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