Mastercard beats profit estimates as consumer spending stays resilient

Mastercard reported an adjusted profit of $5.31 per share for the latest quarter, exceeding the average analyst estimate of $5.16 per share. The financial result concluded a strong period for major payment networks, following recent earnings beats from competitors Visa and American Express. Shares of the company increased by more than 4% during afternoon trading on Thursday. Rivals Visa and American Express each saw their stock prices rise by approximately 2% in the same session.

Consumer spending remained robust despite persistent inflation and economic uncertainty. A steady labor market and strong wage growth have helped offset rising costs of living, including soaring gasoline prices driven by the war in Iran. Ling Hai, Mastercard’s newly appointed chief financial officer, told Reuters that some of this year's spending growth was driven by higher gas prices. She noted that the short-term benefit from price increases could be limited if inflation levels remain elevated.

Spending growth has been observed across different income levels. Mass consumers have allocated more of their budgets toward essentials, while higher-income earners have continued discretionary purchases. Hai stated that credit card usage often increases during economic downturns as consumers rely on borrowing to cover financial shortfalls. Brian Jacobsen, chief economic strategist at Annex Wealth Management, noted that cash-strapped consumers might swipe their card to ride through rougher times.

Cross-border payment volumes at Mastercard jumped 11% in the quarter. This metric tracks spending on cards outside the country where they were issued. The second half of the FIFA World Cup, which ran from June 11 to July 19, acted as a positive driver for these cross-border metrics. This growth helped buffer the impact on travel caused by escalating tensions in the Middle East. Visa CEO Ryan McInerney told analysts on Tuesday that he sees resilience across spending bands on the company's network, though he described determining the duration of that strength as difficult.

Mastercard’s stock has gained about 7% so far in 2026. This performance has trailed both the broader markets and its peer Visa. The stock closed Wednesday at a level just 3.6% below its all-time high, which was set on October 22. The company’s payments network spans more than 200 countries and territories, a structure that helps insulate the business from local economic downturns.