Mastercard (MA) Stock Falls Despite Strong Q2 Results and Price Target Hikes

by MarketNewsData

Mastercard delivered strong second-quarter results, beating Wall Street estimates on both revenue and earnings. The company reported solid growth in cross-border volumes and value-added services, prompting analysts to raise their price targets. Despite the upbeat results and guidance, shares closed lower on the day.

Financial Highlights (Q2 2025)

  • Adjusted Revenue: $8.13 billion
  • Adjusted EPS: $4.15
  • Value-Added Services Revenue: +23% YoY (reported basis)
  • Transaction Processing Volume: +19% YoY
  • Cross-Border Volume: +18% YoY

Stock Performance

  • August 1, 2025 Close: $559.89 (−1.16%)

Analyst Reactions and Price Target Updates

RBC Capital Markets

  • Rating: Outperform
  • New Price Target: $656
  • Notes: Raised FY25 and FY26 revenue and EPS estimates, citing strong cross-border and switched transaction volumes.

JPMorgan

  • Rating: Overweight
  • New Price Target: $685
  • Notes: Highlighted ~15% organic revenue growth and outperformance versus Visa. Cited stable cross-border activity and international strength.

Goldman Sachs

  • Rating: Buy
  • New Price Target: $688
  • Notes: Cited stronger-than-expected cross-border e-commerce trends and growth in value-added services.

Forward Guidance

  • Mastercard issued positive Q3 2025 guidance.
  • Analysts revised EPS estimates through 2027, expecting strong operating leverage.
  • Despite a slight slowdown in U.S. debit volume, international activity remains robust.

More Live News