Mastercard Inc (NYSE:MA). reported strong third-quarter earnings with net income surging to $3.2 billion or $3.39 per share, beating analyst expectations. This increase was fueled by resilient consumer spending and a diversified business model that has proved robust amidst geopolitical uncertainties. The company's revenue matched consensus estimates at $6.5 billion.
Key performance indicators for the quarter showed healthy growth. Gross dollar volume grew by 11%, while cross-border volume, indicative of travel and e-commerce recovery, increased by 21%. Switched transactions also saw a rise of 15%.
However, the company's October trends showed a deceleration, with switched volumes growing only 12%, leading to a 2% drop in Mastercard's shares in premarket action on Thursday.
In addition to its earnings report, Mastercard also announced it had bought back 4.8 million shares for $1.9 billion during the third quarter.
Despite the slowdown in October, Mastercard's Q3 performance contrasts with the broader market landscape. While Visa Inc (NYSE:V). and American Express Co (NYSE:AXP). also reported upbeat earnings, Worldline SA warned of deteriorating conditions in Germany, triggering a sell-off in smaller fintech stocks.
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