Mastercard Reports Q2 Earnings Exceeding Analyst Consensus, Shares Fall 1%

Mastercard reported Q2 net revenues of $8.13 billion, up 17% YoY, beating the analyst consensus estimate. Adjusted EPS rose 16% YoY to $4.15, exceeding the analyst consensus estimate. The company expects net revenue growth in the high teens for Q3 and mid-teens revenue growth for fiscal 2025. Despite this, Mastercard shares fell 1% to trade at $560.72. Analysts have raised their price targets for the stock.

Mastercard Incorporated (MA) reported robust second-quarter (Q2) financial results, exceeding analyst expectations and sparking a wave of optimism among financial analysts. The company reported quarterly net revenues of $8.13 billion, representing a 17% year-over-year (YoY) increase and a 16% YoY increase on a neutral currency basis. This figure surpassed the analyst consensus estimate of $7.95 billion [1].

Adjusted earnings per share (EPS) rose 16% YoY to $4.15, surpassing the analyst consensus estimate of $4.02. Mastercard expects net revenue growth in the high teens for the third quarter and mid-teens revenue growth for fiscal 2025, which are both higher than the analyst consensus estimates [1].

Despite the strong earnings report, Mastercard shares fell 1% to trade at $560.72 on Friday. Analysts have responded to the earnings announcement by raising their price targets for the stock. Keybanc analyst Alex Markgraff maintained the stock with an Overweight rating and raised the price target from $635 to $660. Wells Fargo analyst Donald Fandetti maintained the stock with an Overweight rating and raised the price target from $625 to $650. Morgan Stanley analyst James Faucette maintained the stock with an Overweight rating and raised the price target from $639 to $661. RBC Capital analyst Daniel Perlin maintained the stock with an Outperform rating and raised the price target from $650 to $656 [1].

Mastercard's Q2 performance was driven by increased gross dollar volume, cross-border volumes, and strong demand for value-added services and solutions. The company's gross dollar volume increased 9% on a local-currency basis to $2.6 trillion, while cross-border volumes rose 15% on a local currency basis. Value-added services and solutions' net revenues advanced 23% year over year [2].

Mastercard's financial position remains strong, with cash and cash equivalents at $9 billion and total assets at $51.4 billion. The company generated $7 billion in cash flows from operations in the first half of 2025 and has a buyback capacity of $9.3 billion [2].

Mastercard's peers, Visa Inc. (V) and American Express Company (AXP), also reported strong earnings for the June quarter of 2025. Visa reported third-quarter fiscal 2025 EPS of $2.98, which beat the Zacks Consensus Estimate of $2.86 by 4.2%. American Express reported second-quarter 2025 EPS of $4.08, which beat the Zacks Consensus Estimate by 5.7% [2].

Despite the positive earnings report, Mastercard faces challenges such as economic uncertainty and potential regulatory shifts. The company's outlook remains optimistic, with projections for full-year net revenue growth in the low teens, driven by acquisitions and market expansion.

References:
[1] https://www.benzinga.com/analyst-stock-ratings/price-target/25/08/46801184/mastercard-analysts-boost-their-forecasts-after-upbeat-q2-earnings
[2] https://finance.yahoo.com/news/mastercard-q2-earnings-beat-estimates-163100242.html