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Mastercard Tops Q4 Estimates on Cross-Border Strength

The company will trim about 4% of its workforce to refocus investment.

Overview

  • Adjusted EPS reached $4.76 on revenue of $8.81 billion, topping LSEG consensus, with net income at $4.1 billion and adjusted net income at $4.3 billion.
  • Gross dollar volume rose 7% and cross-border volumes jumped 14%, underscoring resilient travel and consumer spending.
  • Revenue from value-added services and solutions, including fraud protection and cybersecurity tools, grew 26% in the quarter.
  • Executives said the restructuring will result in a charge of about $200 million this quarter as the company reduces staff to shift resources.
  • Mastercard returned cash through $3.6 billion in Q4 share repurchases and $684 million in dividends, while rebates and incentives rose about 20% and operating expenses increased roughly 10%.