Mastercard Incorporated has reported a robust first quarter for 2025, surpassing both revenue and earnings per share (EPS) estimates. The company’s net revenue reached $7.3 billion, marking a 14% increase year-over-year, or 17% on a currency-neutral basis, exceeding analyst projections by $170 million. Adjusted EPS came in at $3.73, beating the forecast of $3.57 by $0.16.
The strong performance was largely driven by significant growth in cross-border transactions, which rose by 15% globally. This increase reflects a recovery in international travel, particularly in regions like China, where cross-border travel volumes have surpassed pre-COVID levels.
Additionally, Mastercard’s value-added services and solutions saw a 16% increase in revenue, benefiting from higher demand for consumer acquisition and engagement services.
Mastercard’s gross dollar volume grew by 9% to $2.4 trillion, with switched transactions rising by 9% year-over-year. The company’s diversified business model, spanning multiple geographies and spending categories, contributed to its resilience and ability to navigate global economic uncertainties. Strategic partnerships, such as those with Microsoft and OpenAI, further enhanced Mastercard’s position in the market.
Despite the positive earnings report, Mastercard’s stock experienced a slight pre-market decline, reflecting broader market conditions and investor caution. However, the company’s long-term prospects remain strong, with a focus on delivering growth through its robust business model and strategic investments in emerging technologies like AI.
Mastercard’s commitment to innovation and customer value continues to drive its success in the payments industry.