As at 30 July 2026

Executive Summary

Key highlights

In this report, we review the 2Q26 results for the period ended 30 July 2026.

Financial results at a glance:

• Net revenue grew by 14%, from $8.1 billion to $9.3 billion, supported by worldwide gross dollar volume rising 8%, purchase volume up 10%, and cross-border volume advancing 12% on a local currency basis, driven by resilient

  consumer spending and continued strength in international travel and e-commerce.

• International performance remained strong, with cross-border volumes rising and cross-border fee income growing even faster, reflecting continued strength in international travel and spending activity, which supported robust payment network revenue growth.

• Adjusted operating expenses increased 11%, from $3.3 billion to $3.6 billion, or 10% on a currency-neutral basis, reflecting higher general and administrative costs. The reported growth also included a 1% benefit from acquisitions and dispositions. Despite the increase in expenses, the adjusted operating margin expanded from

  59.9% in 2Q25 to 61.1% in the current period.

• Net income advanced by 19%, from $3.7 billion to $4.4 billion, while diluted EPS grew 22%, from $4.07 to $4.97. Adjusted net income rose 18%, from $3.8 billion to $4.5 billion, and adjusted diluted EPS increased 21%, from $4.15 to $5.04, driven by strong operating income growth and the impact of share repurchases.

• Shareholder returns remained strong, with $4.9 billion of share repurchases and $771 million in dividend payments during the quarter, supported by robust profitability and cash flow generation.

• Cash, cash equivalents and restricted cash increased 21% to $14.0 billion at the end of the first six months of FY26. Operating cash flow declined 3% to $6.8 billion over the same period, primarily reflecting higher prepaid expenses, accrued expenses, and accrued litigation and legal settlement costs.

Analyst thesis

Our recommendation is based on:

• Diversified network and services model: Mastercard combines a global payments network with a fast-growing value-added services business, including security, authentication, analytics, and customer engagement. This creates multiple revenue streams, supports strong margins, and strengthens client relationships.

• Exposure to attractive payment growth: Mastercard benefits from the structural shift from cash transactions to digital payments, rising e-commerce penetration, and continued growth in cross-border and contactless transactions. Its mix of developed-market resilience and emerging-market penetration supports durable earnings

  growth.

• Expansion into new payment flows: Mastercard is extending its reach beyond traditional card rails through realtime account-based payments, agentic commerce, and stablecoin-related capabilities. These initiatives expand its potential market and improve its long-term strategic relevance.

• Strong cash generation and capital returns: Robust profitability and an asset-light model support continued investment, share repurchases and dividends.