U.S.-based credit card company Mastercard (MA) reported better-than-expected results for Q3 2025, driven by resilient consumer spending. Notably, net income surged 20% to $3.97 billion. Meanwhile, diluted earnings per share (EPS) climbed to $4.34, up from $3.53 in Q2 2024, as strong payment activity continued across its network. MA stock gained 0.031% as of this writing.
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Mastercard’s Revenue Grows
In the third quarter, Mastercard’s net revenue climbed 17% year-over-year to $8.6 billion, topping analysts’ estimates of $8.54 billion. The growth was driven by a 9% increase in gross dollar volume and a 15% rise in cross-border spending. Below is a screenshot showing the company’s gross dollar volume over the last few quarters.
Additionally, Mastercard’s value-added services, which include cybersecurity, data analytics, and marketing tools, grew 25% year over year, contributing a larger share to the company’s overall revenue growth.
Looking ahead, the company reaffirmed its FY25 outlook, expecting adjusted, currency-neutral revenue growth in the “high end of mid teens,” excluding acquisitions. Analysts currently project FY25 revenue of about $32.57 billion.
Consumer Spending Remains Strong
Mastercard’s CEO Michael Miebach said the strong results were fueled by “healthy consumer and business spending.” Overall, demand for travel and everyday purchases has stayed strong despite economic uncertainty.
Earlier this week, Mastercard’s rival Visa (V) reported fiscal fourth-quarter results that slightly beat Wall Street expectations. Visa posted a 12% increase in revenue, driven by strong consumer spending across both discretionary and essential categories. Visa noted that spending growth was led by high-income customers but remained resilient across all consumer groups.
Is Mastercard a Good Stock to Buy?
According to TipRanks, Wall Street has a Strong Buy consensus rating on MA stock, based on 16 Buys and four Holds. The average Mastercard stock price target of $653.73 implies a 17.8% upside potential.
These ratings and price targets will likely change as analysts update their coverage following today’s earnings report.
