Revenue growth remains strong with non-interest income up 14% YoY in Q2 2026, but the efficiency ratio spiked to 36.4% from 16.6% in Q1, indicating a significant cost increase that may pressure margins.
Mastercard Incorporated (MA) annual income statement — 25-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Net Interest Income | -748M | -722M | -646M | -575M | -471M | -431M | -380M | -224M | -186M | -154M | -95M | -61M | -22M | 19M | 16M | 19M | -4M | -59M | 5.16M | 0 | 0 | 0 | 0 | -27.53M | 13.2M | 14.1M |
| NII Growth % | -16.84% | -11.76% | -12.35% | -22.08% | -9.28% | -13.42% | -69.64% | -20.43% | -20.78% | -62.11% | -55.74% | -177.27% | -215.79% | 18.75% | -15.79% | 575% | 93.22% | -1244.08% | - | - | - | - | 100% | -308.61% | -6.4% | - |
| Net Interest Margin % | -1.3% | -1.33% | -1.34% | -1.35% | -1.22% | -1.14% | -1.13% | -0.77% | -0.75% | -0.72% | -0.51% | -0.38% | -0.14% | 0.13% | 0.13% | 0.18% | -0.05% | -0.79% | 0.08% | 0% | 0% | 0% | 0% | -0.95% | 0.58% | 0.95% |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 26M | 33M | 36M | 44M | 48M | 56M | 108.76M | 0 | 0 | 0 | 0 | 35.4M | 23.09M | 23.65M |
| Interest Expense | 748M | 722M | 646M | 575M | 471M | 431M | 380M | 224M | 186M | 154M | 95M | 61M | 48M | 14M | 20M | 25M | 52M | 115M | 103.6M | 0 | 0 | 0 | 0 | 62.94M | 9.89M | 9.55M |
| Loan Loss Provision | 5.31B | 6.53B | 6.03B | 5.45B | 4.79B | 4.06B | 3.41B | 3.31B | 3.03B | 2.53B | 2.13B | 2.04B | 2.02B | 1.73B | 1.54B | 1.43B | 1.17B | -115M | -103.6M | 0 | 0 | 0 | 0 | -62.94M | -9.89M | -9.55M |
| Non-Interest Income | 35.08B | 32.79B | 28.17B | 25.1B | 22.24B | 18.88B | 15.3B | 16.88B | 14.95B | 12.5B | 10.78B | 9.67B | 9.41B | 8.28B | 7.36B | 6.67B | 5.49B | 5.04B | 4.88B | 4.07B | 3.33B | 2.94B | 2.59B | 2.2B | 1.87B | 1.59B |
| Non-Interest Income % | 102.18% | 102.25% | 102.35% | 102.34% | 102.16% | 102.34% | 102.55% | 101.34% | 101.26% | 101.25% | 100.89% | 100.64% | 100.23% | 99.77% | 99.78% | 99.72% | 100.07% | 101.18% | 99.89% | 100% | 100% | 100% | 100% | 101.27% | 99.3% | 99.12% |
| Total Net Revenue | 34.34B | 32.07B | 27.52B | 24.52B | 21.77B | 18.45B | 14.92B | 16.66B | 14.76B | 12.34B | 10.68B | 9.61B | 9.39B | 8.3B | 7.37B | 6.69B | 5.49B | 4.98B | 4.89B | 4.07B | 3.33B | 2.94B | 2.59B | 2.17B | 1.88B | 1.6B |
| Revenue Growth % | 16.31% | 16.53% | 12.23% | 12.67% | 17.95% | 23.67% | -10.43% | 12.84% | 19.61% | 15.56% | 11.19% | 2.27% | 13.2% | 12.58% | 10.2% | 21.91% | 10.09% | 1.96% | 20.17% | 22.29% | 13.22% | 13.28% | 19.62% | 15.2% | 17.49% | - |
| Non-Interest Expense | 8.18B | 6.03B | 5.91B | 5.07B | 4.71B | 4.31B | 3.43B | 3.68B | 4.45B | 3.19B | 2.79B | 2.48B | 2.27B | 2.07B | 1.89B | 2.55B | 1.57B | 2.84B | 5.53B | 2.96B | 3.1B | 2.54B | 2.25B | 2.83B | 1.75B | 1.39B |
| Efficiency Ratio | 23.81% | 18.79% | 21.48% | 20.67% | 21.64% | 23.37% | 23.01% | 22.1% | 30.17% | 25.83% | 26.12% | 25.86% | 24.18% | 24.95% | 25.63% | 38.09% | 28.58% | 56.96% | 113.05% | 72.76% | 93.1% | 86.62% | 86.63% | 130.67% | 92.98% | 86.76% |
| Operating Income | 20.85B | 19.51B | 15.58B | 14.01B | 12.26B | 10.08B | 8.08B | 9.66B | 7.28B | 6.62B | 5.76B | 5.08B | 5.11B | 4.5B | 3.94B | 2.71B | 2.75B | 2.26B | -534.5M | 1.11B | 229.5M | 393.18M | 346.67M | -601.86M | 142M | 221.7M |
| Operating Margin % | 60.73% | 60.85% | 56.62% | 57.12% | 56.34% | 54.64% | 54.16% | 58.01% | 49.32% | 53.65% | 53.94% | 52.86% | 54.36% | 54.27% | 53.41% | 40.56% | 50.15% | 45.35% | -10.94% | 27.24% | 6.9% | 13.38% | 13.37% | -27.76% | 7.55% | 13.84% |
| Operating Income Growth % | - | 25.23% | 11.24% | 14.22% | 21.64% | 24.76% | -16.38% | 32.71% | 9.97% | 14.95% | 13.45% | -0.55% | 13.39% | 14.38% | 45.12% | -1.42% | 21.77% | 522.82% | -148.24% | 382.85% | -41.63% | 13.42% | 157.6% | -523.86% | -35.95% | - |
| Pretax Income | 20.17B | 18.58B | 15.25B | 13.64B | 11.73B | 10.31B | 7.76B | 9.73B | 7.2B | 6.52B | 5.65B | 4.96B | 5.08B | 4.5B | 3.93B | 2.75B | 2.76B | 2.22B | -383.21M | 1.67B | 294.17M | 407.34M | 323.7M | -611.52M | 158.39M | 232.94M |
| Pretax Margin % | 58.75% | 57.93% | 55.43% | 55.62% | 53.9% | 55.86% | 52.01% | 58.41% | 48.79% | 52.84% | 52.86% | 51.61% | 54.07% | 54.23% | 53.36% | 41.08% | 50.25% | 44.5% | -7.84% | 41.09% | 8.84% | 13.87% | 12.48% | -28.21% | 8.42% | 14.54% |
| Income Tax | 3.92B | 3.61B | 2.38B | 2.44B | 1.8B | 1.62B | 1.35B | 1.61B | 1.34B | 2.61B | 1.59B | 1.15B | 1.46B | 1.38B | 1.17B | 842M | 910M | 755M | -129.3M | 585.55M | 243.98M | 140.62M | 85.64M | -220.78M | 41.96M | 90.88M |
| Effective Tax Rate % | 19.41% | 19.43% | 15.6% | 17.92% | 15.36% | 15.72% | 17.38% | 16.58% | 18.67% | 39.97% | 28.11% | 23.19% | 28.79% | 30.76% | 29.85% | 30.64% | 33.01% | 34.04% | 33.74% | 35.03% | 82.94% | 34.52% | 26.46% | 36.1% | 26.49% | 39.01% |
| Net Income | 16.26B | 14.97B | 12.87B | 11.2B | 9.93B | 8.69B | 6.41B | 8.12B | 5.86B | 3.92B | 4.06B | 3.81B | 3.62B | 3.12B | 2.76B | 1.91B | 1.85B | 1.46B | -253.91M | 1.09B | 50.19M | 266.72M | 238.06M | -385.79M | 116.43M | 142.06M |
| Net Margin % | 47.35% | 46.67% | 46.78% | 45.65% | 45.62% | 47.08% | 42.97% | 48.73% | 39.68% | 31.72% | 38% | 39.64% | 38.51% | 37.55% | 37.43% | 28.49% | 33.64% | 29.35% | -5.19% | 26.7% | 1.51% | 9.08% | 9.18% | -17.8% | 6.19% | 8.87% |
| Net Income Growth % | 19.66% | 16.27% | 15% | 12.74% | 14.31% | 35.5% | -21.03% | 38.56% | 49.66% | -3.55% | 6.59% | 5.28% | 16.08% | 12.94% | 44.75% | 3.25% | 26.18% | 676.18% | -123.38% | 2063.55% | -81.18% | 12.04% | 161.71% | -431.35% | -18.04% | - |
| Net Income (Continuing) | 16.26B | 14.97B | 12.87B | 11.2B | 9.93B | 8.69B | 6.41B | 8.12B | 5.86B | 3.92B | 4.06B | 3.81B | 3.62B | 3.12B | 2.76B | 1.91B | 1.85B | 1.46B | -253.91M | 1.09B | 50.19M | 266.72M | 238.06M | -390.74M | 116.43M | 142.06M |
| EPS (Diluted) | 18.41 | 16.52 | 13.89 | 11.83 | 10.23 | 8.76 | 6.37 | 7.94 | 5.60 | 3.65 | 3.69 | 3.35 | 3.10 | 2.56 | 2.19 | 1.48 | 1.41 | 1.12 | -0.20 | 0.80 | 0.04 | 0.20 | 0.24 | -0.39 | 0.14 | 0.20 |
| EPS Growth % | 22.59% | 18.93% | 17.41% | 15.64% | 16.78% | 37.52% | -19.77% | 41.79% | 53.42% | -1.08% | 10.15% | 8.06% | 21.09% | 16.89% | 47.97% | 4.96% | 25.89% | 660% | -125% | 2062.16% | -81.5% | -16.67% | 161.54% | -378.57% | -30% | - |
| EPS (Basic) | - | 16.55 | 13.92 | 11.86 | 10.26 | 8.79 | 6.40 | 7.98 | 5.63 | 3.67 | 3.70 | 3.36 | 3.11 | 2.57 | 2.20 | 1.49 | 1.41 | 1.12 | -0.20 | 0.81 | 0.04 | 0.20 | 0.24 | -0.39 | 0.14 | 0.20 |
| Diluted Shares Outstanding | 883M | 898M | 927M | 946M | 971M | 992M | 1.01B | 1.02B | 1.05B | 1.07B | 1.1B | 1.14B | 1.17B | 1.22B | 1.26B | 1.28B | 1.31B | 1.3B | 1.3B | 1.36B | 1.36B | 1.35B | 1B | 1B | 862.04M | 717.1M |
Quick answers to the most common questions about buying MA stock.
For fiscal year 2025, Mastercard Incorporated (MA) reported total revenue of $32.07B. This represents a 1902.1% increase compared to $1.60B in 2001.
Mastercard Incorporated (MA) is profitable, generating $14.97B in net income for the fiscal year ending 2025 with a net profit margin of 45.6%.
Mastercard Incorporated (MA) reported an operating income of $19.51B, resulting in an operating profit margin of 59.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Mastercard Incorporated (MA) generated $25.54B in gross profit for the year, representing a gross profit margin of 77.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Regulatory and cost pressures
Metrics are mathematically derived from official filings.
Negative NII Reflects Fee-Based Model
Mastercard's net interest income is consistently negative, averaging -$177M per quarter, reflecting its fee-centric model rather than traditional lending, as per recent financial statements.
The negative NII is a structural artifact of Mastercard's business, which generates revenue primarily from transaction fees rather than interest spreads. This line item is immaterial to overall profitability, as total revenue is overwhelmingly composed of non-interest income. Investors should not interpret the negative NII as a sign of funding stress; instead, it underscores the company's unique position as a payment network, not a depository institution.
NIM Not Applicable, Focus on Fee Yields
Net interest margin is negative and stable at -0.4%, but Mastercard's true margin strength lies in its 83.43% gross margin, as reported in financial disclosures.
The negative NIM is a byproduct of the company's minimal interest-earning assets and interest expense on settlement balances. The relevant margin metric is the gross margin, which reflects the high incremental profitability of processing transactions. The stability of NIM at -0.4% across quarters indicates that interest rate movements have negligible impact on the core earnings model, reinforcing the focus on fee-based revenue and operating leverage.
Efficiency Ratio Spikes in Q2 2026
Mastercard's efficiency ratio jumped to 36.4% in Q2 2026 from 16.6% in Q1, suggesting a significant cost increase, according to recent quarterly reports.
The efficiency ratio, defined as non-interest expense divided by total revenue, deteriorated sharply in Q2 2026, indicating that operating expenses grew faster than revenue. This aligns with the EPS miss, where revenue grew 14% YoY but EPS fell short of consensus. The elevated ratio may reflect investments in strategic initiatives or one-time costs, but investors should monitor whether this is a temporary blip or the start of a structural cost trend. Historically, the ratio has been in the high teens to low twenties, so the 36.4% reading is an outlier that warrants close scrutiny.
Provision Expense Volatile but Manageable
Provision for loan losses spiked to $1.9B in Q1 2026 from $1.5B in Q4 2025, but remained stable at $1.7B in Q2, based on reported figures.
Mastercard's provision expense is not tied to traditional loan portfolios but likely relates to consumer credit exposures or acquired entities. The volatility in Q1 2026 may indicate a change in economic outlook or portfolio composition. However, the provision remains a small fraction of total revenue (around 20%), and the company's strong net income suggests that credit costs are not a primary earnings driver. Investors should watch for any sustained increase in provisioning, which could signal deteriorating credit quality in the consumer segment.
Fee Income Dominates Revenue Mix
Non-interest income constitutes 100% of total revenue, with fee-based revenue growing 14% YoY in Q2 2026, as per financial statements.
Mastercard's revenue is entirely derived from fees, including transaction processing, cross-border fees, and value-added services. This structure provides high recurring revenue but exposes the company to volume and pricing risks. The 14% YoY growth in Q2 2026, despite an EPS miss, indicates robust demand for payment services. The composition of fees—particularly the growing share of value-added services—suggests a strategic shift toward higher-margin, less cyclical revenue streams, which could enhance earnings stability.
Q2 2026 Signals Cost Inflection
Q2 2026 marked a potential inflection point with an EPS miss despite strong revenue growth, indicating a shift in cost dynamics, as reported in earnings releases.
The Q2 2026 results present a mixed signal: revenue growth of 14% YoY (12% currency-neutral) exceeded expectations, but EPS of $5.04 missed consensus by $0.11. This divergence suggests that the company's operating leverage may be diminishing, possibly due to increased investments in technology, marketing, or incentives. The efficiency ratio spike to 36.4% supports this view. If this cost pressure persists, it could compress margins and slow EPS growth, making it a critical quarter to watch for future trends.
Earnings Quality Questioned by Cost Spike
The Q2 2026 efficiency ratio spike to 36.4% raises concerns about earnings quality, as revenue growth did not translate to proportional profit growth, per recent filings.
Mastercard's earnings quality may be under pressure if the cost increase in Q2 2026 is not a one-time event. The company's high gross margin suggests that the incremental cost of processing transactions is low, so the efficiency ratio spike likely stems from SG&A or incentive expenses. If these costs are tied to competitive pressures, such as increased rebates to issuers, they could erode the company's pricing power. Additionally, the low debt-to-equity ratio of 2.45% appears inconsistent with the company's historical use of leverage for buybacks, warranting further investigation into its capital structure and potential off-balance-sheet obligations.