FY2026 EPS Estimates for Mastercard Cut by Erste Group Bank

Key Points

• Erste Group Bank modestly reduced Mastercard’s FY2026 EPS estimate to $19.66 from $19.68, slightly above the broader consensus estimate of $19.61.
• Mastercard’s latest quarterly results exceeded expectations, with EPS of $5.04 versus the $4.77 consensus and revenue of $9.28 billion compared with estimates of $9.08 billion.
• Despite some analysts lowering price targets, Mastercard maintains a consensus “Buy” rating with an average price target of $653.65; institutional investors own 97.28% of the stock, and the company declared a quarterly dividend of $0.87 per share.

Mastercard Incorporated (NYSE:MA - Free Report) - Stock analysts at Erste Group Bank decreased their FY2026 earnings estimates for shares of Mastercard in a research report issued to clients and investors on Monday, July 27th. Erste Group Bank analyst H. Engel now forecasts that the credit services provider will earn $19.66 per share for the year, down from their previous estimate of $19.68. The consensus estimate for Mastercard's current full-year earnings is $19.61 per share.

Mastercard (NYSE:MA - Get Free Report) last released its earnings results on Thursday, July 30th. The credit services provider reported $5.04 earnings per share for the quarter, topping analysts' consensus estimates of $4.77 by $0.27. The business had revenue of $9.28 billion for the quarter, compared to analyst estimates of $9.08 billion. Mastercard had a net margin of 45.88% and a return on equity of 212.96%.

Other equities analysts have also issued research reports about the company. TD Cowen lowered their price objective on Mastercard from $671.00 to $664.00 and set a "buy" rating on the stock in a research note on Tuesday, July 7th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Mastercard in a report on Tuesday, July 21st. Royal Bank Of Canada lowered their price target on shares of Mastercard from $656.00 to $629.00 and set an "outperform" rating on the stock in a research report on Friday, May 1st. Wall Street Zen cut shares of Mastercard from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Finally, Citigroup decreased their target price on shares of Mastercard from $735.00 to $675.00 and set a "buy" rating on the stock in a report on Tuesday, April 14th. Eight analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Buy" and an average price target of $653.65.

Mastercard Price Performance

NYSE:MA opened at $563.65 on Thursday. Mastercard has a one year low of $464.52 and a one year high of $601.77. The stock has a market cap of $498.03 billion, a PE ratio of 32.62, a P/E/G ratio of 1.76 and a beta of 0.73. The company has a debt-to-equity ratio of 2.56, a quick ratio of 0.98 and a current ratio of 0.98. The stock has a 50 day moving average price of $511.79 and a 200 day moving average price of $514.20.

Institutional Investors Weigh In On Mastercard

A number of hedge funds and other institutional investors have recently modified their holdings of MA. Border to Coast Pensions Partnership Ltd increased its position in Mastercard by 7.3% in the 1st quarter. Border to Coast Pensions Partnership Ltd now owns 139,844 shares of the credit services provider's stock valued at $70,089,000 after acquiring an additional 9,504 shares during the period. Assetmark Inc. grew its holdings in Mastercard by 4.5% during the fourth quarter. Assetmark Inc. now owns 229,299 shares of the credit services provider's stock worth $130,902,000 after acquiring an additional 9,795 shares during the period. Marble Wealth LLC purchased a new position in shares of Mastercard in the 4th quarter valued at about $1,328,000. Canada Post Corp Registered Pension Plan boosted its stake in shares of Mastercard by 6.1% during the 4th quarter. Canada Post Corp Registered Pension Plan now owns 65,414 shares of the credit services provider's stock worth $37,344,000 after acquiring an additional 3,768 shares in the last quarter. Finally, Charles Lim Capital Ltd acquired a new stake in Mastercard in the fourth quarter valued at $15,699,000. 97.28% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, insider Raj Seshadri sold 4,828 shares of Mastercard stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $525.00, for a total value of $2,534,700.00. Following the completion of the transaction, the insider owned 16,429 shares in the company, valued at approximately $8,625,225. The trade was a 22.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Sandra A. Arkell sold 200 shares of the stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $540.00, for a total transaction of $108,000.00. Following the sale, the insider owned 3,322 shares in the company, valued at approximately $1,793,880. This trade represents a 5.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 7,005 shares of company stock valued at $3,689,976. 0.09% of the stock is currently owned by corporate insiders.

Mastercard Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 7th. Investors of record on Thursday, July 9th will be issued a dividend of $0.87 per share. This represents a $3.48 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date is Thursday, July 9th. Mastercard's dividend payout ratio (DPR) is 20.14%.

Mastercard News Summary

Here are the key news stories impacting Mastercard this week:

• Positive Sentiment: Analysts modestly raised longer-term earnings forecasts. Zacks Research increased its estimates for Q1 2027 EPS to $4.89 from $4.86, FY2027 EPS to $22.27 from $22.24, and Q1 2028 EPS to $6.02 from $5.99. The revisions suggest continued confidence in Mastercard’s earnings growth. Zacks Research Mastercard earnings estimates
• Positive Sentiment: Visa’s earnings provide a favorable industry read-through. Visa reported better-than-expected quarterly earnings and revenue, supported by strong cross-border volumes, consumer spending and network activity. The results may reinforce expectations for healthy payment volumes at Mastercard ahead of its own report. Visa Q3 Earnings Beat Estimates on Cross-Border Volume Strength
• Positive Sentiment: Mastercard is expanding fraud protection and digital-payment infrastructure. Its Scam Merchant Monitoring Program requires acquiring banks to investigate suspected fraud within defined timelines. The company is also expanding stablecoin settlement capabilities, including through BVNK, potentially creating new payment and banking-service opportunities. Mastercard Launches Scam Program and Expands Stablecoin Payment Infrastructure
• Positive Sentiment: Mastercard and Egypt’s NBE launched a U.S.-dollar corporate debit card. The product will support cross-border payments for Egyptian businesses, including small and midsize companies, expanding Mastercard’s commercial-payment footprint. Mastercard and NBE Introduce USD Corporate Debit Card in Egypt
• Neutral Sentiment: Mastercard’s upcoming earnings remain the key near-term catalyst. The company is expected to report before the market opens, with analysts looking for another earnings beat. However, the shares trade at approximately 32.6 times earnings, leaving less room for disappointment. What to Expect From Mastercard’s Q2 Earnings
• Negative Sentiment: Some estimates were trimmed. Zacks reduced its Q2 2028 EPS forecast to $6.10 from $6.11, while Erste Group lowered its FY2026 estimate to $19.66 from $19.68. The changes are minor, but they indicate limited near-term earnings revisions from some analysts. Regulatory risks also remain a concern. Mastercard Nears Q2 Earnings With Beat Potential

About Mastercard

Mastercard Incorporated is a global payments technology company that operates a network connecting consumers, financial institutions, merchants, governments and businesses in more than 200 countries and territories. The company facilitates electronic payments and transaction processing for credit, debit and prepaid card products carrying the Mastercard brand, while also providing a range of payment-related services to issuers, acquirers and merchants. Its technology and network enable authorization, clearing and settlement of payments and support a broad set of use cases including point-of-sale, e-commerce and mobile payments.

Beyond core transaction processing, Mastercard offers a suite of value-added services such as fraud and risk management, identity and authentication tools, tokenization and digital wallet support, cross-border and commercial payment solutions, and data analytics and consulting services for merchants and financial partners.

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