Mastercard Inc. shares experienced their largest intraday decline since February after the payments network warned that overseas spending growth on its cards had weakened in recent weeks. The company reported US$8.4 billion in net revenue for the first quarter of 2026, surpassing analyst expectations of US$8.25 billion.
Cross-Border Spending Slowdown
Cross-border travel spending growth slowed significantly in the month through April 28, climbing just two percent from a year earlier, compared with an eight percent gain in the first quarter, according to a presentation on Thursday. This data points to a more pronounced slowdown than what was observed at Visa Inc., according to Truist Financial Corp. analysts including Matthew Coad.
Mastercard Chief Financial Officer Sachin Mehra attributed the slowdown to geopolitical tensions and timing effects. “We are seeing cross-border travel get negatively impacted by virtue of the conflict,” Mehra said in an interview. He noted that holiday timing—specifically the shifting of Ramadan and Easter—created week-over-week impacts, but emphasized that none of these factors are structural in nature.
Financial Performance
Despite the slowdown, Mastercard’s adjusted net income of US$4.1 billion topped the average analyst estimate of US$3.92 billion. Payment-network net revenue rose 12 percent year-over-year. Operating expenses in the first quarter totaled US$3.49 billion, slightly higher than the US$3.46 billion average estimate from analysts.
Mastercard maintained its guidance for non-GAAP net revenue growth on a currency-neutral basis and slightly raised its outlook for GAAP net revenue growth. The firm now expects GAAP net revenue to rise by a percentage in the high end of low double digits to low teens.
Consumer Spending Trends
So far this year, Mastercard and its rivals have benefited from strong consumer spending. American Express Co. saw billed business climb 10 percent in the first quarter, while Visa shares jumped after posting what analysts called “one of the cleanest” quarters in years. However, rising geopolitical tensions and price pressures on items such as gas have spurred concerns about consumer resilience. American Express noted that airline growth softened in late March and April due to disruptions from the Middle East conflict.
“The essence of what we’re seeing is the underlying strength of the consumer remains solid,” Mehra said. “And this is true in the United States and it’s true globally.”
Strategic Developments
Mastercard has been seeking to expand its capabilities, particularly in stablecoins and cryptocurrencies. In March, the company struck a deal to acquire stablecoin firm BVNK for up to US$1.8 billion. It has also expanded partnerships with digital-asset firms including Circle Internet Group Inc. and Binance.
Mastercard shares were down 4.2 percent to US$503.17 at 12:50 p.m. in New York, and have slipped nearly 12 percent since the start of the year.
