Mastercard reports $4.1B net income for Q4 2025, sustains strong payment activity

Mastercard just reported $4.1 billion in net income for Q4 2025, as strong payment activity kept money flowing. Earnings per share hit $4.52, up 24% from the same quarter in 2024.

Net revenue came in at $8.8 billion, marking an 18% increase year over year, or 15% without currency effects. The surge came from growing card usage, more services sold, and ongoing strength in both consumer and business transactions.

Operating income was $4.9 billion, rising 25%, while operating margin reached 55.8%, climbing 3.2 percentage points. Operating expenses increased 10% to $3.9 billion, driven mostly by higher administrative costs.

Mastercard said part of that cost increase was offset by new government grants tied to late 2025 deals. The effective tax rate hit 16.7%, higher than last year’s 14.1%, pushed up by tax rules affecting Singapore operations.

Payment network and services push revenue higher

Mastercard said the payment network revenue rose 12%, or 9% excluding currency shifts. The total gross dollar volume across its network reached $2.8 trillion, up 7% in local currency. Cross-border volume increased 14%, while switched transactions were up 10%. Higher activity led to more rebates and incentives, which climbed 20%.

Beyond cards, value-added services and solutions jumped 26%, or 22% currency-neutral. Three percentage points came from acquisitions, but most of the growth came from demand for tools like digital security, identity checks, analytics, and customer engagement services. Pricing gains helped too.

Adjusted net income for Q4 reached $4.3 billion, and adjusted diluted EPS was $4.76, both up 22% and 25% respectively. Adjusted operating expenses rose 14% to $3.7 billion, while the adjusted operating margin increased to 57.7%.

Michael Miebach, the CEO of Mastercard, said the company is still winning big from its deals and tech offerings. He pointed to programs like the Apple Card and added that growth in services was 23%, or 21% currency-neutral, for the full year. “We continue to see healthy consumer and business spending,” Miebach said.

Full-year results show higher earnings and big buybacks

For all of 2025, Mastercard brought in $32.8 billion in net revenue, up 16%, or 15% currency-neutral. Operating income hit $18.9 billion, while operating margin expanded to 57.6%. Net income reached $15.0 billion, and diluted EPS totaled $16.52, a 19% jump from 2024.

Adjusted full-year EPS came in at $17.01, with adjusted net income of $15.4 billion. Adjusted operating margin was 59.2%, and adjusted operating expenses rose 14% to $13.4 billion. The adjusted effective tax rate increased to 19.6%, also due to the global 15% minimum tax and a change in how income was spread across countries.

The quarter also saw $13 million in favorable other income, thanks to government grants and a one-time tax interest benefit, despite losses from equity investments. Without those investments, adjusted other income improved by $158 million.

Mastercard ended the year with 3.7 billion cards issued globally across its brands. It repurchased 6.4 million shares in Q4 for $3.6 billion and paid out $684 million in dividends. By January 26, the company had also bought back 1.3 million more shares, costing $715 million, leaving $16.7 billion available under current buyback approvals.

That makes Mastercard a giant still very much on offense.

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