Mastercard Q2 Results Exceed Expectations, RBC Raises Price Forecast to $656

Mastercard reported Q2 results beating consensus estimates with adjusted revenue of $8.13 bln and EPS of $4.15. Value-added services (VAS) revenue rose 23% YoY, driving long-term revenue diversification. Analysts, including RBC Capital Markets and JPMorgan, raised their price forecasts and EPS projections, citing strong Q2 results, positive trends, and resilient growth. Goldman Sachs maintained a Buy rating and increased its price forecast to $688.

Mastercard Incorporated (MA) reported robust second-quarter (Q2) 2025 results, exceeding analyst expectations. The company's adjusted earnings per share (EPS) of $4.15 surpassed the Zacks Consensus Estimate by 2.5% [1]. Net revenues advanced 16.8% year over year to $8.1 billion, exceeding the consensus mark by 1.9% [1].

The strong quarterly performance was driven by several factors, including increased gross dollar volume (GDV), robust cross-border volumes, and strong demand for value-added services (VAS). Mastercard's GDV increased 9% on a local-currency basis to $2.6 trillion, while cross-border volumes rose 15% [1]. VAS net revenues grew 23% year over year to $3.2 billion, driven by acquisitions, higher demand for consumer acquisition and engagement, and business and market insight services [1].

Operating expenses escalated 15% year over year to $3.3 billion, partly offsetting the upside from revenue growth. Adjusted operating income was $4.9 billion, up 18% year over year [1]. The adjusted operating margin improved 50 basis points year over year to 59.9% [1].

Mastercard's financial position as of June 30, 2025, showed a cash and cash equivalents balance of $9 billion, up from $8.4 billion at the end of 2024. Total assets increased to $51.4 billion from $48.1 billion, while long-term debt rose to $19 billion from $17.5 billion [1].

The company's stock price reacted positively to the results, with analysts, including RBC Capital Markets and JPMorgan, raising their price forecasts and EPS projections. Goldman Sachs maintained a Buy rating and increased its price forecast to $688 [1].

Mastercard's peers, such as Visa Inc. (V) and American Express Company (AXP), also reported strong Q2 results, with Visa's EPS beating the Zacks Consensus Estimate by 4.2% and American Express's EPS exceeding the estimate by 5.7% [1].

In summary, Mastercard's Q2 2025 results demonstrate the company's resilience and growth potential, driven by strong revenue growth and effective cost management.

References:
[1] https://finance.yahoo.com/news/mastercard-q2-earnings-beat-estimates-163100242.html