MA · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

Mastercard Inc · 2026-07-30 · Importance 54 · Surprise 40 · No source text

Six-month operating income increased 18% to $10.494 billion, while operating margin expanded 1.3 percentage points to 59.4%. Adjusted operating margin also increased 1.3 percentage points to 61.0%, or 0.9 percentage points currency-neutral, despite adjusted operating expenses rising 11%. Revenue growth outpaced reported expense growth because net revenue increased 15% while operating expenses increased 11%. The margin benefit included a 2026 restructuring charge of $202 million and lower litigation provisions compared with 2025, partly offset by higher general and administrative spending.

Key facts

• Three months ended June 30, 2026 operating income: $5,587 million, up 17% versus comparable period in 2025; operating margin 60.2% (up 1.5 ppt) source
• Six months ended June 30, 2026 operating income: $10,494 million, up 18% versus comparable period in 2025; operating margin 59.4% (up 1.3 ppt) source
• Other income (expense), net increased in the three and six months ended June 30, 2026 versus comparable period in 2025 primarily driven by government grants source
• Company reports other income (expense), net increase primarily driven by government grants in 2026 source
• Three months ended June 30, 2026 gains (losses) on equity investments: net losses of $2 million (three months) and $68 million for six months ended June 30, 2026 source
• Other income (expense) total for three months ended June 30, 2026: $(101) million versus $(105) million for the three months ended June 30, 2025 source
• Other income (expense) adjusted - non-GAAP for three months ended June 30, 2026: $(100) million (adjusted total other income (expense)) source
• As-reported operating margin for three months ended June 30, 2026: 60.2%; adjusted operating margin: 61.1% source

Impact estimates