MA · Q2 FY2026
Mastercard Inc Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $9.28B | $8.13B (yr ago) | Beat |
| EPS | $4.97 | $4.07 (yr ago) | Beat |
| Free Cash Flow | $3.48B (N/M for a financial company) | $4.56B (yr ago; N/M) | Miss |
| Gross Margin | N/M for a financial company | N/M (yr ago) | Miss |
| Operating Margin | 60.2% pre-tax margin | 58.7% pre-tax margin (yr ago) | Beat |
What changed
Revenue increased 14.1% year over year to $9.28 billion, while EPS rose 22.1% to $4.97. Pre-tax margin expanded 150 basis points to 60.2%, indicating that earnings grew faster than revenue. The reported free-cash-flow figure declined, but that measure is not analytically meaningful for this financial company.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise; we initiate fair value at $564 per share. The quarter supports the operating thesis, but Mastercard’s 31.1x trailing earnings multiple already reflects much of that strength.