Mastercard Beats Profit Estimates as Spending Stays Steady

Mastercard reported higher profits than expected on Thursday, confirming that consumer spending has remained strong despite persistent inflation and economic uncertainty. The earnings report capped a solid quarter for major payment networks, following similar beats from Visa and American Express earlier this month.

The company posted an adjusted profit of $5.31 per share. That figure surpassed the average analyst estimate of $5.16 per share, according to data compiled by LSEG. Mastercard shares rose more than 4% in afternoon trading. Rivals Visa and American Express saw their stocks gain approximately 2% each.

Ling Hai, the company's newly appointed Chief Financial Officer, told Reuters that steady labor markets and strong wage growth have helped cushion the impact of rising living costs. Gasoline prices have soared due to the war in Iran, but Hai noted that some of this year's spending growth was driven by those higher fuel costs. She warned that this short-term price benefit could fade if inflation levels remain elevated.

Hai added that spending increased across all income levels. Mass consumers allocated more of their budgets to essentials, while higher-income earners maintained their discretionary purchases. Brian Jacobsen, chief economic strategist at Annex Wealth Management, observed that cash-strapped consumers often lean on credit cards to manage financial shortfalls during difficult 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, boosted these cross-border figures. That growth helped offset a hit to travel spending caused by escalating tensions in the Middle East.

Visa CEO Ryan McInerney told analysts on Tuesday that the network sees resilience across spending bands. He described the current stability as a positive sign but noted that determining the new normal remains difficult. Mastercard's stock has gained about 7% so far in 2026, underperforming the broader market and its peer Visa, though it traded near record levels Wednesday, just 3.6% below its all-time high set on October 22.