Q4 2025 Mastercard Inc Earnings Call

January 29, 2026

Operator: Good morning. My name is Julie Ann, and I will be your conference operator today. At this time, I would like to welcome everyone to the Mastercard Incorporated Q4 and Full Year 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. Please only press star one once to queue up for a question, as pressing star one multiple times may affect your position in the queue. If you would like to withdraw your question, press star one again. Mr. Devin Corr, Head of Investor Relations, you may begin your conference.

Speaker #1: All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad.

Speaker #1: Please only press star one once to queue up for a question, as pressing star one multiple times may affect your position in the queue.

Speaker #1: If you would like to withdraw your question, press star one again. Mr. Devin Corr, Head of Investor Relations, you may begin your

Speaker #1: conference. Thank you,

Devin Corr: Thank you, Julie Ann. Good morning, everyone, and thank you for joining us for our Q4 2025 earnings call. With me today are Michael Miebach, our Chief Executive Officer, and Sachin Mehra, our Chief Financial Officer. Following comments from Michael and Sachin, the operator will announce your opportunity to get into the queue for the Q&A session. It is only then that the queue will open for questions. You can access our earnings release, supplemental performance data, and the slide deck that accompanied this call in the Investor Relations section of our website, mastercard.com. Additionally, the release was furnished with the SEC earlier this morning. Our comments today regarding our financial results will be on a non-GAAP currency-neutral basis unless otherwise noted. Both the release and the slide deck include reconciliations of non-GAAP measures to GAAP reported amounts.

Q4 2025 Mastercard Inc Earnings Call

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Q4 2025 Mastercard Inc Earnings Call

Thursday, January 29th, 2026 at 2:00 PM

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Michael Miebach: Thank you, Devin. Good morning, everyone. There was a lot of activity to close out 2025, and it's been a fast-paced start to the new year. In that spirit, let's jump right in. My headline for you today: We continue to deliver, and 2025 was another very strong year. For Q4, net revenues were up 15% overall, with value-added services and solutions net revenue up 22% versus a year ago on a non-GAAP currency-neutral basis. Our consistently solid performance is driven by several factors. First, we are focused. Our strategy is clear, and we're executing against it. We're making strong progress against each of our strategic pillars and benefiting from the virtuous cycle across our payment network and services offerings. Second, we're innovative and agile. We spearhead the payments evolution. At the same time, environments shift: customer needs, technology, regulation.

Michael Miebach: So we adapt, and we prioritize, ensuring we have the right capabilities and skill sets. Recently, we completed a strategic review of our business. This will result in reductions in some areas and roles, but lead to further investment and increased focus in others. And finally, we're diversified and differentiated. Our business extends across geographies, spend categories, and payment adjacencies. The diversification of our business means we benefit from a wide range of growth drivers, which make us more resilient. As we enter 2026, geopolitical and macroeconomic uncertainty persists. We will continue to monitor and work to navigate, just as we have successfully done in the past. But for now, we remain optimistic and confident in our execution and the fundamentals of our business. Looking back at 2025, we won hundreds of new issuing deals and expansions globally. This doesn't just happen.

So we adapt, and we prioritize, ensuring we have the right capabilities and skill sets. Recently, we completed a strategic review of our business. This will result in reductions in some areas and roles, but lead to further investment and increased focus in others. And finally, we're diversified and differentiated. Our business extends across geographies, spend categories, and payment adjacencies. The diversification of our business means we benefit from a wide range of growth drivers, which make us more resilient. As we enter 2026, geopolitical and macroeconomic uncertainty persists. We will continue to monitor and work to navigate, just as we have successfully done in the past. But for now, we remain optimistic and confident in our execution and the fundamentals of our business. Looking back at 2025, we won hundreds of new issuing deals and expansions globally. This doesn't just happen.

Michael Miebach: It is the result of our dedicated salesforce, technology, and differentiated value we deliver to our customers. I will share a few highlights from this past quarter. In the US and Canada, we extended our longstanding partnership with Capital One, where we renewed our partnership in credit, and we will be the network for a large portion of newly acquired credit accounts. And across their business, Capital One will continue to use several of Mastercard's services. In Turkey, Yapı Kredi will migrate nearly 10 million cards across their consumer credit, debit, and affluent portfolios to Mastercard. Our consulting and marketing services will be used to support the end-to-end portfolio conversion. In Latin America, Scotiabank chose Mastercard as their network partner in Mexico, Chile, and Uruguay. Why? They see Mastercard's security, loyalty, and analytics offerings as key to fueling their growth.

It is the result of our dedicated salesforce, technology, and differentiated value we deliver to our customers. I will share a few highlights from this past quarter. In the US and Canada, we extended our longstanding partnership with Capital One, where we renewed our partnership in credit, and we will be the network for a large portion of newly acquired credit accounts. And across their business, Capital One will continue to use several of Mastercard's services. In Turkey, Yapı Kredi will migrate nearly 10 million cards across their consumer credit, debit, and affluent portfolios to Mastercard. Our consulting and marketing services will be used to support the end-to-end portfolio conversion. In Latin America, Scotiabank chose Mastercard as their network partner in Mexico, Chile, and Uruguay. Why? They see Mastercard's security, loyalty, and analytics offerings as key to fueling their growth.

Michael Miebach: Earlier this month, it was announced that Mastercard will continue to be the exclusive network for the Apple Card, which will transition to JPMorgan Chase as the issuer in approximately 24 months. We supported the launch of this industry-leading co-brand nearly seven years ago, and we are excited to support its continued success. We won the Walmart and Sam's Club co-brands in Mexico in partnership with Invex Banco, where we renewed our partnership with Barclays, supporting its US co-branded card programs and its Tesco Bank card programs in the UK. We partnered with Amazon and Emirates Islamic to launch the Amazon Credit Card in the UAE. As I've said, we remain focused on driving long-term growth across each of our strategic pillars. In consumer payments, this quarter was about continued innovation and focus on driving incremental growth.

Earlier this month, it was announced that Mastercard will continue to be the exclusive network for the Apple Card, which will transition to JPMorgan Chase as the issuer in approximately 24 months. We supported the launch of this industry-leading co-brand nearly seven years ago, and we are excited to support its continued success. We won the Walmart and Sam's Club co-brands in Mexico in partnership with Invex Banco, where we renewed our partnership with Barclays, supporting its US co-branded card programs and its Tesco Bank card programs in the UK. We partnered with Amazon and Emirates Islamic to launch the Amazon Credit Card in the UAE. As I've said, we remain focused on driving long-term growth across each of our strategic pillars. In consumer payments, this quarter was about continued innovation and focus on driving incremental growth.

Michael Miebach: Our drumbeat of wins I just mentioned shows that Mastercard is preferred over alternative networks. Banks chose Mastercard because of our global acceptance, our consumer protections, strong security, and digital capabilities. It's also about our dedicated teams and our commitment to driving mutual growth. We work with our existing customers to optimize their portfolios by using our advanced analytics and AI capabilities. We help clients activate their cardholders, drive top-of-wallet behavior, and increase approval rates. It works. We're driving more transactions of our network and in key categories like digital or cross-border. In looking at digital commerce alone, we've seen approval rates increase by 270 basis points in the last five years. Now, think about what that means when applied to Mastercard's global payment network. Last year alone, we switched more than 175 billion transactions. That's a lot of potential to further optimize.

Our drumbeat of wins I just mentioned shows that Mastercard is preferred over alternative networks. Banks chose Mastercard because of our global acceptance, our consumer protections, strong security, and digital capabilities. It's also about our dedicated teams and our commitment to driving mutual growth. We work with our existing customers to optimize their portfolios by using our advanced analytics and AI capabilities. We help clients activate their cardholders, drive top-of-wallet behavior, and increase approval rates. It works. We're driving more transactions of our network and in key categories like digital or cross-border. In looking at digital commerce alone, we've seen approval rates increase by 270 basis points in the last five years. Now, think about what that means when applied to Mastercard's global payment network. Last year alone, we switched more than 175 billion transactions. That's a lot of potential to further optimize.

Michael Miebach: We now switch more than 70% of all Mastercard transactions globally, an increase of 10% since 2020. More switched transactions result in more data, in more opportunity to sell services, and so on, all of which allows us to help our partners drive top and bottom-line growth, enable seamless and secure experiences for our cardholders. This is the virtuous cycle in motion. The payments industry continues to evolve. Stablecoins and agentic commerce bring new choices to pay and get paid. We are leaning in, just as we have with neobanks, digital wallets, and installments, and so on. For us, stablecoins and agentic commerce are emerging opportunities, ones where Mastercard has a natural role to play. We have been active in the digital asset space for over a decade. Most use cases for crypto and stablecoin today offer trading and the like.

We now switch more than 70% of all Mastercard transactions globally, an increase of 10% since 2020. More switched transactions result in more data, in more opportunity to sell services, and so on, all of which allows us to help our partners drive top and bottom-line growth, enable seamless and secure experiences for our cardholders. This is the virtuous cycle in motion. The payments industry continues to evolve. Stablecoins and agentic commerce bring new choices to pay and get paid. We are leaning in, just as we have with neobanks, digital wallets, and installments, and so on. For us, stablecoins and agentic commerce are emerging opportunities, ones where Mastercard has a natural role to play. We have been active in the digital asset space for over a decade. Most use cases for crypto and stablecoin today offer trading and the like.

Michael Miebach: For us, it is another currency we can support within our network. We've made good traction, enabling the purchase of these assets, facilitating transactions, and supporting stablecoin for settlement over our network. Trust, interoperability, and global acceptance are key in all payments. That's where we come in. This quarter, we have supported co-brand partners such as MetaMask as they scale across geographies. We partner with co-brand partners to extend their offerings to new customer types. Gemini brings their success in the digital asset space to launch the first business-focused stablecoin co-brand. We continue to expand our settlement capabilities, now working with Ripple. Moving on to agentic commerce, where AI-powered agents assist or act on behalf of consumers throughout their commerce journeys. For us, agentic commerce represents another avenue to enable payment choice with the same trust that we always deliver. It's early days, but we are ready.

For us, it is another currency we can support within our network. We've made good traction, enabling the purchase of these assets, facilitating transactions, and supporting stablecoin for settlement over our network. Trust, interoperability, and global acceptance are key in all payments. That's where we come in. This quarter, we have supported co-brand partners such as MetaMask as they scale across geographies. We partner with co-brand partners to extend their offerings to new customer types. Gemini brings their success in the digital asset space to launch the first business-focused stablecoin co-brand. We continue to expand our settlement capabilities, now working with Ripple. Moving on to agentic commerce, where AI-powered agents assist or act on behalf of consumers throughout their commerce journeys. For us, agentic commerce represents another avenue to enable payment choice with the same trust that we always deliver. It's early days, but we are ready.

Michael Miebach: You remember, last year, we launched Mastercard Agent Pay, a framework designed to foster trust in agentic transactions. We have now enabled our US issuers to participate in Agent Pay, and we are working to enable our global issuer base by the end of Q1. As more agents come on board, there will be more opportunities for consumers to experience a truly seamless commerce experience. We're actively working with ecosystem participants to adopt agentic commerce across all regions. I'll share a few highlights from this quarter. In Asia, we're partnering with Anthem on card-based tokenized payment solutions for agentic payments. In the UK, we're consulting clients such as Lloyds Banking Group, Elavon, and Santander on agentic commerce innovations. In the UAE, we're piloting agentic payments with the leading retail and entertainment group, Majid Al Futtaim.

You remember, last year, we launched Mastercard Agent Pay, a framework designed to foster trust in agentic transactions. We have now enabled our US issuers to participate in Agent Pay, and we are working to enable our global issuer base by the end of Q1. As more agents come on board, there will be more opportunities for consumers to experience a truly seamless commerce experience. We're actively working with ecosystem participants to adopt agentic commerce across all regions. I'll share a few highlights from this quarter. In Asia, we're partnering with Anthem on card-based tokenized payment solutions for agentic payments. In the UK, we're consulting clients such as Lloyds Banking Group, Elavon, and Santander on agentic commerce innovations. In the UAE, we're piloting agentic payments with the leading retail and entertainment group, Majid Al Futtaim.

Michael Miebach: With banks, merchants, and digital players, we continue to position them for success in this new era of commerce, whether it be through consulting, security, data-driven insights, or new loyalty programs. We are there. Moving to commercial and new payment flows, one of our three strategic priorities. In 2025, our commercial credit and debit volumes represented 13% of our total GDV and grew at 11% year-over-year on a local currency basis. That's a clear reinforcement that our differentiated value propositions and broad-based partnerships are driving meaningful results. In commercial point-of-sale and invoice-based payment flows, our offerings are designed to meet corporate demands for more efficient, data-rich, and secure transactions. We continue to expand usage of our virtual cards by enabling transactions to be initiated within B2B and T&E platforms. Mastercard's commercial express program simplifies the integration and onboarding.

With banks, merchants, and digital players, we continue to position them for success in this new era of commerce, whether it be through consulting, security, data-driven insights, or new loyalty programs. We are there. Moving to commercial and new payment flows, one of our three strategic priorities. In 2025, our commercial credit and debit volumes represented 13% of our total GDV and grew at 11% year-over-year on a local currency basis. That's a clear reinforcement that our differentiated value propositions and broad-based partnerships are driving meaningful results. In commercial point-of-sale and invoice-based payment flows, our offerings are designed to meet corporate demands for more efficient, data-rich, and secure transactions. We continue to expand usage of our virtual cards by enabling transactions to be initiated within B2B and T&E platforms. Mastercard's commercial express program simplifies the integration and onboarding.

Michael Miebach: This quarter, Emburse, a leading T&E platform, and BMO and Huntington Bank were the latest issuers to participate. Differentiated solutions benefit our customers, and that has translated into significant wins. This quarter, we renewed our global partnership with WEX and extended our partnership with Barclays, the UK, and across Europe. Also, we partner with Coupa, a leading business spend management platform, to launch the Coupa Mastercard. Together, we are enabling virtual card payments across the entire customer base, which spans millions of buyers and suppliers globally. There's much more than winning share. We're actively working to capture the sizable secular opportunity. Small businesses represent more than half of the cash and check opportunity in commercial point-of-sale that we outlined at our investor day. Given the broad-based diversity of the small business segment, we are working across banks and non-bank partners to serve this segment.

This quarter, Emburse, a leading T&E platform, and BMO and Huntington Bank were the latest issuers to participate. Differentiated solutions benefit our customers, and that has translated into significant wins. This quarter, we renewed our global partnership with WEX and extended our partnership with Barclays, the UK, and across Europe. Also, we partner with Coupa, a leading business spend management platform, to launch the Coupa Mastercard. Together, we are enabling virtual card payments across the entire customer base, which spans millions of buyers and suppliers globally. There's much more than winning share. We're actively working to capture the sizable secular opportunity. Small businesses represent more than half of the cash and check opportunity in commercial point-of-sale that we outlined at our investor day. Given the broad-based diversity of the small business segment, we are working across banks and non-bank partners to serve this segment.

Michael Miebach: It benefits our partners, Mastercard, in the overall economy. This quarter, we extended our partnerships with Intesa San Paolo to drive greater small business issuance in Italy. We're partnering with L'Oréal to issue small business cards across Latin America. Our first market launch is a co-brand card with Clara for salon owners in Mexico. This is a prime example of how we are using a vertical approach to partner with large-scale players to capture untapped payment flows. Growth through differentiated value and broad-based partnership continues for Mastercard Move, our disbursements and remittances capability. Now, with more than 17 billion endpoints available, Mastercard Move is positioned to be the money movement platform with the greatest reach in the industry. Mastercard Move recipients have the option to receive funds across a variety of endpoints, including but not limited to bank accounts, debit cards, and digital wallets, and cash if you want to.

It benefits our partners, Mastercard, in the overall economy. This quarter, we extended our partnerships with Intesa San Paolo to drive greater small business issuance in Italy. We're partnering with L'Oréal to issue small business cards across Latin America. Our first market launch is a co-brand card with Clara for salon owners in Mexico. This is a prime example of how we are using a vertical approach to partner with large-scale players to capture untapped payment flows. Growth through differentiated value and broad-based partnership continues for Mastercard Move, our disbursements and remittances capability. Now, with more than 17 billion endpoints available, Mastercard Move is positioned to be the money movement platform with the greatest reach in the industry. Mastercard Move recipients have the option to receive funds across a variety of endpoints, including but not limited to bank accounts, debit cards, and digital wallets, and cash if you want to.

Michael Miebach: We continue to expand our network reach just recently by enabling bank account deposits in Bangladesh, by expanding digital wallets and endpoints in the Philippines through our partnership with GCash, and in China through our partnership with Tenpay Global for WeChat Pay, and with stablecoin wallets through our partnership with Soons. Our expanded reach and endpoint options are resonating with customers. This quarter, we partner with Banco Ripley, a subsidiary of the Ripley Corporation, one of the largest retail companies in South America, to offer Mastercard cross-border services to their customers in Chile and Peru. We also partner with Capital Bank, a leading neobank in Mexico, which is leveraging Mastercard and Corpay's cross-border payment solutions. Our Mastercard Move capability has demonstrated consistently strong transaction growth. In Q4 2025 and full year 2025, we saw transaction growth exceeding 35% versus a year ago.

We continue to expand our network reach just recently by enabling bank account deposits in Bangladesh, by expanding digital wallets and endpoints in the Philippines through our partnership with GCash, and in China through our partnership with Tenpay Global for WeChat Pay, and with stablecoin wallets through our partnership with Soons. Our expanded reach and endpoint options are resonating with customers. This quarter, we partner with Banco Ripley, a subsidiary of the Ripley Corporation, one of the largest retail companies in South America, to offer Mastercard cross-border services to their customers in Chile and Peru. We also partner with Capital Bank, a leading neobank in Mexico, which is leveraging Mastercard and Corpay's cross-border payment solutions. Our Mastercard Move capability has demonstrated consistently strong transaction growth. In Q4 2025 and full year 2025, we saw transaction growth exceeding 35% versus a year ago.

Michael Miebach: Our extensive reach and market adoption position us well going forward. Turning to value-add services and solutions, we delivered strong performance in 2025 with full-year net revenue growth of 21% or 18%, excluding acquisitions year-over-year on a currency-neutral basis. This growth was broad-based with consistently strong growth across regions and product groups. Our performance is a clear demonstration of our growth algorithm in action that steps through that. We have curated a suite of value-add services and capabilities in large and fast-growing addressable markets such as digital, security, and data-driven insights. Mastercard's proprietary data and AI capabilities, combined with our payment network reach, provide us a real competitive advantage. Simply put, we provide unique intelligence at scale. There's a natural tailwind to services from payments. In our investor day at the end of 2024, we noted that 60% of our value-added services and solutions net revenues were network-linked.

Our extensive reach and market adoption position us well going forward. Turning to value-add services and solutions, we delivered strong performance in 2025 with full-year net revenue growth of 21% or 18%, excluding acquisitions year-over-year on a currency-neutral basis. This growth was broad-based with consistently strong growth across regions and product groups. Our performance is a clear demonstration of our growth algorithm in action that steps through that. We have curated a suite of value-add services and capabilities in large and fast-growing addressable markets such as digital, security, and data-driven insights. Mastercard's proprietary data and AI capabilities, combined with our payment network reach, provide us a real competitive advantage. Simply put, we provide unique intelligence at scale. There's a natural tailwind to services from payments. In our investor day at the end of 2024, we noted that 60% of our value-added services and solutions net revenues were network-linked.

Michael Miebach: This simply means value-added services and solutions revenues benefit from transaction growth and also higher growth drivers such as tokenization. For example, fraud scores and token authentication fall into this category. We are actively working to further penetrate our customers and markets, just like the Mastercard Threat Intelligence offering we launched last quarter, which has already started scaling across our payment network. In addition to network-linked offerings, we also provide our customers with consulting, marketing, and platform-based offerings. These non-network services enable us to sell to new buying centers at retail banks. They also extend our reach across a more diversified customer base, including governments, merchants, digital players, and more. This quarter, we supported Costco in Canada and their omnichannel growth strategy using Mastercard's marketing and consulting services. That's meaningful strategic value. Innovation remains core to our long-term growth.

This simply means value-added services and solutions revenues benefit from transaction growth and also higher growth drivers such as tokenization. For example, fraud scores and token authentication fall into this category. We are actively working to further penetrate our customers and markets, just like the Mastercard Threat Intelligence offering we launched last quarter, which has already started scaling across our payment network. In addition to network-linked offerings, we also provide our customers with consulting, marketing, and platform-based offerings. These non-network services enable us to sell to new buying centers at retail banks. They also extend our reach across a more diversified customer base, including governments, merchants, digital players, and more. This quarter, we supported Costco in Canada and their omnichannel growth strategy using Mastercard's marketing and consulting services. That's meaningful strategic value. Innovation remains core to our long-term growth.

Michael Miebach: We have a long-standing history of success in launching and scaling innovations. Way back in 2013, we architected the industry standard for tokenization to enable trusted digital transactions, a critical need of customers and partners at that time and still true today. In fact, as of Q4, we have tokenized nearly 40% of all transactions. And we continue to see adoption in both card-present and card-not-present use cases. And with this growth, we're seeing higher transactional approval rates, enabling further services growth. Our innovations continue to deliver real value to our customers and continue to drive financial benefit today. We're adding to that innovation. Now, with the launch of Mastercard Credit Intelligence, by using Mastercard's proprietary network data, identity, and open finance capabilities, we can deliver faster credit assessments. For individuals and entrepreneurs, this could mean greater access to credit.

We have a long-standing history of success in launching and scaling innovations. Way back in 2013, we architected the industry standard for tokenization to enable trusted digital transactions, a critical need of customers and partners at that time and still true today. In fact, as of Q4, we have tokenized nearly 40% of all transactions. And we continue to see adoption in both card-present and card-not-present use cases. And with this growth, we're seeing higher transactional approval rates, enabling further services growth. Our innovations continue to deliver real value to our customers and continue to drive financial benefit today. We're adding to that innovation. Now, with the launch of Mastercard Credit Intelligence, by using Mastercard's proprietary network data, identity, and open finance capabilities, we can deliver faster credit assessments. For individuals and entrepreneurs, this could mean greater access to credit.

Michael Miebach: For banks, it's greater insights to inform their lending strategies. That fuels a healthy, inclusive digital economy. It is live in market and seeing adoption across a variety of customer types. In addition, we've launched Mastercard Agent Suite, evolving our consulting practice from AI strategy to now include asset-led engagements. We will design and deploy AI agents within customer environments to drive operational excellence, enhance end customer experience. In addition to directly engaging with customers, we're scaling our services through distribution partners, one to many, including FIS, WPP, and Comcast Advertising, who we added this quarter. With that, I will wrap it up. In summary, we delivered a very strong fourth quarter and a full year 2025. Our performance is a direct reflection of our growth strategy, deliberate diversification, and focused execution. We're at the forefront of innovation, and we're remaining differentiated versus the competition.

For banks, it's greater insights to inform their lending strategies. That fuels a healthy, inclusive digital economy. It is live in market and seeing adoption across a variety of customer types. In addition, we've launched Mastercard Agent Suite, evolving our consulting practice from AI strategy to now include asset-led engagements. We will design and deploy AI agents within customer environments to drive operational excellence, enhance end customer experience. In addition to directly engaging with customers, we're scaling our services through distribution partners, one to many, including FIS, WPP, and Comcast Advertising, who we added this quarter. With that, I will wrap it up. In summary, we delivered a very strong fourth quarter and a full year 2025. Our performance is a direct reflection of our growth strategy, deliberate diversification, and focused execution. We're at the forefront of innovation, and we're remaining differentiated versus the competition.

Michael Miebach: This helps us be an agile, trusted, valued partner, especially as markets evolve. With strong momentum moving into 2026 and remain confident in our continued growth. Sachin, over to you. Thanks, Michael. So turning to page 3, which shows our financial performance for Q4 on a currency-neutral basis, excluding, where applicable, special items and the impact of gains and losses on our equity investments. Net revenue was up 15%, reflecting continued growth in our payment network and our value-added services and solutions. Acquisitions contributed one PPT to this growth. Before discussing expenses, I am pleased to share that in late December, the company secured various new multi-year government grants related to investments in select geographies. These grants benefit both operating expenses and other income and expense.

Michael Miebach: We expect to realize the operating expense benefit primarily in 2025 and 2026, while the other income and expense benefit will extend multiple years beyond 2026. The Q4 2025 impact reflects the full-year value of the 2025 grants, with operating expenses growth improving by around 5.5 PPT and other income and expense benefiting by approximately $135 million in the quarter. These positively impacted each of the following metrics that I will discuss on this page. Operating expenses increased 12%, including a 5 PPT increase from acquisitions. Operating income was up 17%, which includes a 1 PPT headwind from acquisitions. Net income and EPS increased 17% and 20% respectively, driven primarily by the strong operating income growth and a positive discrete tax item, which primarily benefited the effective tax rate. EPS was $4.76, which includes a $0.10 contribution from share repurchases.

We expect to realize the operating expense benefit primarily in 2025 and 2026, while the other income and expense benefit will extend multiple years beyond 2026. The Q4 2025 impact reflects the full-year value of the 2025 grants, with operating expenses growth improving by around 5.5 PPT and other income and expense benefiting by approximately $135 million in the quarter. These positively impacted each of the following metrics that I will discuss on this page. Operating expenses increased 12%, including a 5 PPT increase from acquisitions. Operating income was up 17%, which includes a 1 PPT headwind from acquisitions. Net income and EPS increased 17% and 20% respectively, driven primarily by the strong operating income growth and a positive discrete tax item, which primarily benefited the effective tax rate. EPS was $4.76, which includes a $0.10 contribution from share repurchases.

Michael Miebach: During the quarter, we repurchased $3.6 billion worth of stock and an additional $715 million through 26 January 2026. Now, turning to page 4, let's first look at some of our key volume drivers for the fourth quarter on a local currency basis. Worldwide gross dollar volume, or GDV, increased by 7% year-over-year. In the US, GDV increased by 4%, with credit growth of 6% and debit growth of 2%. The growth of our debit portfolio was impacted by the Capital One debit migration, which continued through Q4. Outside of the US, volume increased 9%, with credit growth of 9% and debit growth of 9%. Overall, cross-border volume increased 14% globally for the quarter, reflecting continued growth in both travel and non-travel related cross-border spending. Turning to page 5, switch transactions grew 10% year-over-year in Q4.

During the quarter, we repurchased $3.6 billion worth of stock and an additional $715 million through 26 January 2026. Now, turning to page 4, let's first look at some of our key volume drivers for the fourth quarter on a local currency basis. Worldwide gross dollar volume, or GDV, increased by 7% year-over-year. In the US, GDV increased by 4%, with credit growth of 6% and debit growth of 2%. The growth of our debit portfolio was impacted by the Capital One debit migration, which continued through Q4. Outside of the US, volume increased 9%, with credit growth of 9% and debit growth of 9%. Overall, cross-border volume increased 14% globally for the quarter, reflecting continued growth in both travel and non-travel related cross-border spending. Turning to page 5, switch transactions grew 10% year-over-year in Q4.

Michael Miebach: We continue to drive contactless penetration, which in Q4 stood at 77% of all in-person switched purchase transactions. This is up 5 PPT since the same period last year. In addition, card growth was 6%. Globally, there are 3.7 billion Mastercard and Maestro branded cards issued. Turning now to slide 6 for a look into our net revenue growth rates for the fourth quarter discussed on a currency-neutral basis. Payment network net revenue increased 9%, primarily driven by domestic and cross-border transaction and volume growth. It also includes growth in rebates and incentives. Value-added services and solutions net revenue increased 22%. Acquisitions contributed approximately 3 PPT to this growth. The remaining 19% increase was primarily driven by growth in our underlying drivers, strong demand across digital and authentication, security solutions, consumer acquisition and engagement, and business and market insights, as well as pricing.

We continue to drive contactless penetration, which in Q4 stood at 77% of all in-person switched purchase transactions. This is up 5 PPT since the same period last year. In addition, card growth was 6%. Globally, there are 3.7 billion Mastercard and Maestro branded cards issued. Turning now to slide 6 for a look into our net revenue growth rates for the fourth quarter discussed on a currency-neutral basis. Payment network net revenue increased 9%, primarily driven by domestic and cross-border transaction and volume growth. It also includes growth in rebates and incentives. Value-added services and solutions net revenue increased 22%. Acquisitions contributed approximately 3 PPT to this growth. The remaining 19% increase was primarily driven by growth in our underlying drivers, strong demand across digital and authentication, security solutions, consumer acquisition and engagement, and business and market insights, as well as pricing.

Michael Miebach: As we reflect on value-added services and solutions growth for the full year 2025, we continue to see strong broad-based growth, as Michael mentioned earlier. Looking at our organic growth rates, both APEMIA and the Americas delivered high teens growth. We also saw at least high teens growth across all the services product areas apart from other solutions. Now, let's turn to page 7 to discuss key metrics related to the payment network. Again, all growth rates are described on a currency-neutral basis unless otherwise noted. Looking quickly at each key metric, domestic assessments were up 8%, while worldwide GDV grew 7%. The difference is primarily driven by pricing, offset by mix. Cross-border assessments increased 17%, while cross-border volumes increased 14%. The 3 PPT difference is driven primarily by pricing in international markets, partially offset by mix. Transaction processing assessments were up 14%, while switch transactions grew 10%.

As we reflect on value-added services and solutions growth for the full year 2025, we continue to see strong broad-based growth, as Michael mentioned earlier. Looking at our organic growth rates, both APEMIA and the Americas delivered high teens growth. We also saw at least high teens growth across all the services product areas apart from other solutions. Now, let's turn to page 7 to discuss key metrics related to the payment network. Again, all growth rates are described on a currency-neutral basis unless otherwise noted. Looking quickly at each key metric, domestic assessments were up 8%, while worldwide GDV grew 7%. The difference is primarily driven by pricing, offset by mix. Cross-border assessments increased 17%, while cross-border volumes increased 14%. The 3 PPT difference is driven primarily by pricing in international markets, partially offset by mix. Transaction processing assessments were up 14%, while switch transactions grew 10%.

Michael Miebach: The 4 PPT difference is primarily due to favorable mix and pricing, partially offset by a decline in revenue from FX volatility. Towards the end of Q4 and month-to-date January, we saw FX volatility well below historical norms. Other network assessments were $272 million this quarter. Moving on to page 8, you can see that on a non-GAAP currency-neutral basis, excluding special items, total adjusted operating expenses increased 12%, which includes a 5 PPT impact from acquisitions. Excluding acquisitions, the growth of total adjusted operating expenses was primarily driven by increased spending to support various strategic initiatives, including investing in our infrastructure, geographic expansion, and enhancing and delivering our products and services. This was partially offset by the benefit of the government grants I described earlier. Turning to page 9, let me comment on the operating metric trends.

The 4 PPT difference is primarily due to favorable mix and pricing, partially offset by a decline in revenue from FX volatility. Towards the end of Q4 and month-to-date January, we saw FX volatility well below historical norms. Other network assessments were $272 million this quarter. Moving on to page 8, you can see that on a non-GAAP currency-neutral basis, excluding special items, total adjusted operating expenses increased 12%, which includes a 5 PPT impact from acquisitions. Excluding acquisitions, the growth of total adjusted operating expenses was primarily driven by increased spending to support various strategic initiatives, including investing in our infrastructure, geographic expansion, and enhancing and delivering our products and services. This was partially offset by the benefit of the government grants I described earlier. Turning to page 9, let me comment on the operating metric trends.

Michael Miebach: Starting with Q4 and looking at the metrics on a sequential basis, US switched volume growth declined primarily due to the migration of the Capital One debit portfolio. Worldwide less US switched volume saw a slight deceleration driven primarily by tougher comps, including the lapping of portfolio wins in Europe. Switch transactions were in line with Q3. Cross-border volume remained strong. Of note, we saw a sequential decline in cross-border card-not-present ex-travel, primarily driven by tougher comps from the lapping of share wins in Europe and higher growth from crypto purchases a year ago. As we look to the first three weeks of January, our metrics continue to remain strong, generally in line with the fourth quarter. Of note, US switched volume was flat sequentially as the Capital One debit rolloff was mostly offset by easier comps due to weather impacts in the prior year.

Starting with Q4 and looking at the metrics on a sequential basis, US switched volume growth declined primarily due to the migration of the Capital One debit portfolio. Worldwide less US switched volume saw a slight deceleration driven primarily by tougher comps, including the lapping of portfolio wins in Europe. Switch transactions were in line with Q3. Cross-border volume remained strong. Of note, we saw a sequential decline in cross-border card-not-present ex-travel, primarily driven by tougher comps from the lapping of share wins in Europe and higher growth from crypto purchases a year ago. As we look to the first three weeks of January, our metrics continue to remain strong, generally in line with the fourth quarter. Of note, US switched volume was flat sequentially as the Capital One debit rolloff was mostly offset by easier comps due to weather impacts in the prior year.

Michael Miebach: We saw a decline in cross-border travel volumes, primarily due to weather-related impacts in Europe this year. Cross-border card-not-present X travel continued to be impacted by higher growth from crypto purchases a year ago. Overall, we continue to see healthy consumer and business spending. Turning to page 10, I wanted to share our thoughts on fiscal year 2026. As Michael said, we delivered very strong results in 2025 across all facets of our business despite an uncertain backdrop. The fundamentals of our business remain strong. The macroeconomic environment remains supportive with balanced job markets across the globe underpinning healthy consumer and business spending. That said, there continues to be ongoing geopolitical and economic uncertainty. We maintain a disciplined capital planning approach and have levers to pull if needed. But most importantly, we're focused on the execution of our strategy, positioning ourselves for long-term growth and remaining innovative and differentiated.

We saw a decline in cross-border travel volumes, primarily due to weather-related impacts in Europe this year. Cross-border card-not-present X travel continued to be impacted by higher growth from crypto purchases a year ago. Overall, we continue to see healthy consumer and business spending. Turning to page 10, I wanted to share our thoughts on fiscal year 2026. As Michael said, we delivered very strong results in 2025 across all facets of our business despite an uncertain backdrop. The fundamentals of our business remain strong. The macroeconomic environment remains supportive with balanced job markets across the globe underpinning healthy consumer and business spending. That said, there continues to be ongoing geopolitical and economic uncertainty. We maintain a disciplined capital planning approach and have levers to pull if needed. But most importantly, we're focused on the execution of our strategy, positioning ourselves for long-term growth and remaining innovative and differentiated.

Michael Miebach: Coupled with our diversified business model, this creates resiliency, helps us navigate diverse environments just as we have done in the past. We remain positive about the growth outlook, and our base case for 2026 continues to reflect healthy consumer spending. As it relates to our expectations for the full year 2026, we expect net revenues to grow at the high end of a low double-digits range on a currency-neutral basis, excluding inorganic activity. We estimate a tailwind of approximately 1 to 1.5 PPT from foreign exchange. From a net revenue perspective, we expect currency-neutral growth in the first half of the year to be lower than in the second half. This is driven by tougher comps in the first half, primarily due to elevated revenue growth from FX volatility in 2025.

Michael Miebach: From an operating expense standpoint, we expect growth to be at the low end of a low double-digits range versus a year ago on a currency-neutral basis, excluding inorganic activity and special items. We expect a headwind of 0.5 to 1 PPT from foreign exchange on a full year basis. Now, turning to the first quarter of 2026, year-over-year net revenue growth is expected to be at the low end of a low double-digits range on a currency-neutral basis, excluding inorganic activity. We estimate a tailwind of approximately 3.5 to 4 PPT from foreign exchange for the quarter. From an operating expense standpoint, we expect Q1 growth to be in the high end of high single-digit range versus a year ago, again on a currency-neutral basis, excluding inorganic activity and special items. Foreign exchange is forecasted to be a headwind of approximately 2.5 PPT for the quarter.

From an operating expense standpoint, we expect growth to be at the low end of a low double-digits range versus a year ago on a currency-neutral basis, excluding inorganic activity and special items. We expect a headwind of 0.5 to 1 PPT from foreign exchange on a full year basis. Now, turning to the first quarter of 2026, year-over-year net revenue growth is expected to be at the low end of a low double-digits range on a currency-neutral basis, excluding inorganic activity. We estimate a tailwind of approximately 3.5 to 4 PPT from foreign exchange for the quarter. From an operating expense standpoint, we expect Q1 growth to be in the high end of high single-digit range versus a year ago, again on a currency-neutral basis, excluding inorganic activity and special items. Foreign exchange is forecasted to be a headwind of approximately 2.5 PPT for the quarter.

Michael Miebach: Separately, as Michael mentioned, based on the recent strategic review of our business, we expect to record a one-time restructuring charge in Q1 of approximately $200 million. This will be recorded as a special item and is excluded from our non-GAAP metrics. These actions will impact approximately 4% of our full-time employees globally. We expect these actions will free up capacity to further invest in our strategic priorities and best position us to continue to execute on our growth algorithm. Other items to keep in mind. On other income and expenses, in Q1, we expect an expense of approximately $50 million, including the benefit from the government grants previously discussed. This excludes gains and losses on our equity investments, which are excluded from our non-GAAP metrics.

Michael Miebach: Finally, we expect a non-GAAP tax rate in the range of 20% to 21% for the full year and approximately 19% to 20% for Q1. A lower forecasted tax rate for Q1 as compared to the balance of the year is consistent with prior years due to expected discrete tax benefits related to share-based payments in the first quarter. And with that, I will turn the call back over to Devin. Thank you, Sachin. Thank you, Michael. Julianne, you may now open the line for questions. Thank you. At this time, I would like to remind everyone in order to ask a question, press Star, then the number one on your telephone keypad. Please only press Star one once to queue up for a question, as pressing Star one multiple times may affect your position in the queue. We'll pause for just a moment to compile the Q&A roster.

Michael Miebach: Our first question comes from Will Nance from Goldman Sachs. Please go ahead. Your line is open. Hi. Thank you for taking the question. I wanted to start on the Capital One renegotiation. Congratulations on announcing that. Maybe if you could just provide a little bit more details. I think Cap One has talked about wanting to move volumes over to the Discover network over time, but at the same time, it's talked about a lot of investments on the acceptance side. So can you talk about just the renegotiation as it relates to your existing Capital One cards outstanding? Are you expecting your share of Capital One credit volumes to remain stable as a function of the renegotiation? And if you could just maybe talk about how long the extension was for. I appreciate any details you can share. Thank you. Yeah. Thanks for the question. So no surprise.

Michael Miebach: We're excited about these recent news that we announced earlier. So extending our credit portfolio agreement with them is important, but also we should not overlook the aspect of Capital One as the great partner that they are to use more of our services across their whole business. It's a strong signal, in my view at least, that the Mastercard network is valued. This is important to consider. We continue to invest in this network. We continue to invest in our acceptance. We know this is hard to build, and that is really what matters when it comes to affluent portfolios, when it comes to business portfolios, and so forth. So the partnership will continue, but we will continue to invest to ensure that we have a truly differentiated proposition as a partner for Capital One. Appreciate you taking the question. Our next question comes from Sanjay Sakhrani from KBW.

Michael Miebach: If you take it down to the facts, little progress has been made. A lot of discussions there around that. Also what clearly has emerged is it is a very united opposition to this proposed bill as the benefits of the bill are yet to be proven while the risks are pretty clear. That aspect is about taking consumer choice away from consumers. They can't really take paid away. They want to pay. That choice moves to merchants. This has been discussed in the context of affordability, but there is no particular consideration in this bill to actually pass on any savings. There's a big topic that is often overlooked, and that is the potential risk to cybersecurity. This is a race to the bottom for the cheapest network option, but not the safest. Those are all things that haven't really changed since 2023.

If you take it down to the facts, little progress has been made. A lot of discussions there around that. Also what clearly has emerged is it is a very united opposition to this proposed bill as the benefits of the bill are yet to be proven while the risks are pretty clear. That aspect is about taking consumer choice away from consumers. They can't really take paid away. They want to pay. That choice moves to merchants. This has been discussed in the context of affordability, but there is no particular consideration in this bill to actually pass on any savings. There's a big topic that is often overlooked, and that is the potential risk to cybersecurity. This is a race to the bottom for the cheapest network option, but not the safest. Those are all things that haven't really changed since 2023.

Michael Miebach: But the opposition, based on focused on these points, has intensified. The industry is very aligned. We're engaging with regulators at every point to educate and ensure that this is fully understood. It's also important to understand that the payments ecosystem is highly competitive. Now, the Credit Card Competition Act isn't really about competition. It's about lowering costs without considering all the points I just said. There is competition. It's working. It's a highly effective ecosystem. That is our perspective on it. That hasn't changed. On the probability of this going through, I mean, we shouldn't be speculating here. A few moves were made over the last couple of weeks, which haven't succeeded. I think we attribute that to a continued discussion on the risk associated with this particular regulation.

But the opposition, based on focused on these points, has intensified. The industry is very aligned. We're engaging with regulators at every point to educate and ensure that this is fully understood. It's also important to understand that the payments ecosystem is highly competitive. Now, the Credit Card Competition Act isn't really about competition. It's about lowering costs without considering all the points I just said. There is competition. It's working. It's a highly effective ecosystem. That is our perspective on it. That hasn't changed. On the probability of this going through, I mean, we shouldn't be speculating here. A few moves were made over the last couple of weeks, which haven't succeeded. I think we attribute that to a continued discussion on the risk associated with this particular regulation.

Michael Miebach: And then, Sanjay, on your question around Capital One, it's like Michael said in his prepared remarks, right? We're really excited about the new agreement, which we struck with them as it relates to new credit issuance. And that's the extent of what we'll share with you publicly as it relates to the interactions. But suffice it to say, the reality is the customer sees real value with what Mastercard brings. That's the reason we are actually doing what we are doing in the nature of the credit agreement. And they're seeing that across the payment network as well as value-added services and solutions. Thank you. Our next question comes from Adam Frisch from Evercore ISI. Please go ahead. Your line is open. Thanks, guys. And thanks for restoring some order in the marketplace as it relates to your stock this morning.

Adam Frisch: Thanks, guys. And thanks for restoring some order in the marketplace as it relates to your stock this morning. I want to address, go back to DC for a second. We wrote earlier this week that CCCA is all but dead for now, at least, but would love your views on the topic around a 10% rate cap on credit, which seems like it's a back burner for now, but it's only a tweet away from being reignited. So would love your perspective on how you describe the conversations going on between the industry and the administration to address the affordability issue as it relates to our space. And then if you could also provide some insight around your conversations with issuers and other relevant players in the ecosystem about ways to address the president's concerns without creating a broader crisis in the industry. Thanks.

Michael Miebach: I want to address, go back to DC for a second. We wrote earlier this week that CCCA is all but dead for now, at least, but would love your views on the topic around a 10% rate cap on credit, which seems like it's a back burner for now, but it's only a tweet away from being reignited. So would love your perspective on how you describe the conversations going on between the industry and the administration to address the affordability issue as it relates to our space. And then if you could also provide some insight around your conversations with issuers and other relevant players in the ecosystem about ways to address the president's concerns without creating a broader crisis in the industry. Thanks. Good. Yes. Appreciate your first comment, actually, on the order. So the rate cap, it's a really important conversation around affordability.

Michael Miebach: And we shared that that should be addressed. But when you think about the rate cap in particular, here is a proposal that comes with a whole range of consequences if you think through how something like this would be impacted. And the consequence that comes to mind first is, what does this mean to credit access for a lot of the most vulnerable people that may not have access to credit any longer should a rate cap like this be passed? So this is an important topic to be understood. To your question about our conversations with the banks, with the issuers, the card issuers, we don't set rates, but obviously, we have a shared interest in making sure that the overall credit ecosystem does work and provides credit access. So we're sharing data. We're helping to compute what the impact might be.

And we shared that that should be addressed. But when you think about the rate cap in particular, here is a proposal that comes with a whole range of consequences if you think through how something like this would be impacted. And the consequence that comes to mind first is, what does this mean to credit access for a lot of the most vulnerable people that may not have access to credit any longer should a rate cap like this be passed? So this is an important topic to be understood. To your question about our conversations with the banks, with the issuers, the card issuers, we don't set rates, but obviously, we have a shared interest in making sure that the overall credit ecosystem does work and provides credit access. So we're sharing data. We're helping to compute what the impact might be.

Michael Miebach: And then it is really understanding from our bank partners where they're going to go. Is it going to be different products? What is there today? Part of this is education. What kind of 0% introductory rates are out there today? Low interest rate products and so forth. So it's a broad conversation that's going on across the industry, leaning in on the topic of affordability and options around that. So I think overall, a constructive dialogue that was sparked. We have yet to see. As I said, it doesn't affect us directly as we don't set rates, but we're actively engaged as an industry custodian. Do you see the administration and the industry having more constructive talks about feasible alternatives here as opposed to a blanket? There's a live dialogue. Yeah. There's a live dialogue here. I think everybody realizes this is an important topic.

Michael Miebach: I think we need to move to the next question. Okay. Great. Thanks, guys. Our next question comes from Ramsay Ellis from Cantor Fitzgerald. Please go ahead. Your line is open. Hi. Thank you so much for taking my question. Michael, could you give us a view on the health of the consumer? It's a very noisy kind of media political environment with a lot of mixed signals. On the other hand, it seems like the underlying spend volumes are really hanging in quite solidly across the board. What are you guys seeing out there? Any changing patterns? Anything interesting to call out? Thanks. Right. It's a great question. When you look back over 2025, over the whole year, and we just take soft data like headlines or consumer confidence data that comes out, on one hand, consumers fill in surveys.

Michael Miebach: At the same time, their spend behavior hasn't actually changed. So that's a pattern that just continues. We see, just taking 2025, it hasn't changed quarter-over-quarter. We see a truly savvy and intentional consumer. So what the digital economy brings to consumers comes almost back to the affordability topic is an ability to figure out what's the best deal. What do you want to spend on? Where can you use your rewards to avail something that otherwise you might not do at this time? So is it a savvy and intentional consumer? They're using their loyalty programs, their data to kind of spend on what they want to spend on anyway. So that has been a continuous trend. There is a question on how the consumer was affected or not by some of the tariff changes that we've seen last year.

Michael Miebach: That doesn't show up in our data either. It's not coming through. Somewhere across the ecosystem between importers and big brands, it's all been adjusted in a way that it hasn't really affected consumer spending. At least we cannot tell that. There's conversation on how does the whole spend pattern change when you look across higher income bands and lower income bands, and what we see across the board in the light of a job market that is supporting paychecks and people are spending those paychecks and the wealth effect on the other hand. There are different types of supporting kind of factors around that support overall affluence spend as well as lower income spend. That hasn't really changed. Sanjay talked about it earlier. The first three weeks into January, we see this continue.

Michael Miebach: The more important thing here, though, is Mastercard is actually delivering some incremental value to our customers, which is why we actually generate the revenue associated with whether it's good volatility or bad volatility. The reality is we're delivering currency conversion services, which means that our customers are seeing value in terms of what we're doing. And it allows us to actually participate in that volatility to the extent it's high or then the detrimental impact of that volatility to the extent it's low. So that's kind of point number one. On VAS growth, super pleased with the results. The company continues to be very focused. It's an important part of our various strategic pillars. You can see that the growth rates are healthy. I'll go back to what Michael said in his prepared remarks, right?

The more important thing here, though, is Mastercard is actually delivering some incremental value to our customers, which is why we actually generate the revenue associated with whether it's good volatility or bad volatility. The reality is we're delivering currency conversion services, which means that our customers are seeing value in terms of what we're doing. And it allows us to actually participate in that volatility to the extent it's high or then the detrimental impact of that volatility to the extent it's low. So that's kind of point number one. On VAS growth, super pleased with the results. The company continues to be very focused. It's an important part of our various strategic pillars. You can see that the growth rates are healthy. I'll go back to what Michael said in his prepared remarks, right?

Michael Miebach: Our business in terms of how we actually operate our VAS portfolio is very tightly intertwined with what's going on in the payment network. Let's stop there, right? The payment network brings volume onto the system. It brings data. Data enables the creation of VAS solutions, and that allows this virtual cycle to keep going. As it relates to the growth, we continue to remain very encouraged about the growth prospects from a VAS standpoint. We shared with you previously what the building blocks of that growth are. Let's start with the fact that if there's underlying growth in drivers driven by what we're doing in the payment network, there's an attached rate which is related to that, which actually helps growth take place. In our investor day, we talked about how approximately 60% of our VAS revenues are network linked.

Our business in terms of how we actually operate our VAS portfolio is very tightly intertwined with what's going on in the payment network. Let's stop there, right? The payment network brings volume onto the system. It brings data. Data enables the creation of VAS solutions, and that allows this virtual cycle to keep going. As it relates to the growth, we continue to remain very encouraged about the growth prospects from a VAS standpoint. We shared with you previously what the building blocks of that growth are. Let's start with the fact that if there's underlying growth in drivers driven by what we're doing in the payment network, there's an attached rate which is related to that, which actually helps growth take place. In our investor day, we talked about how approximately 60% of our VAS revenues are network linked.

Michael Miebach: We kind of talked about how across APEMIA and Americas, we're seeing good growth from a VAS standpoint, and also across the various elements of our services portfolio, we're seeing good growth. So that's kind of pretty comforting to me to see that we are actually executing across that VAS growth algorithm in a meaningful manner. The last point I'll make is enabling this growth has been the constant look we do from an innovation standpoint organically. We've done a bunch of new innovation, which we've announced, but also what we're doing to expand our addressable market. Examples of that would be things like Recorded Future, which takes us into new and different and fast-growing spaces like threat intelligence. So if I had to bring all of this together for you, I'd say good solid growth in VAS in 2025.

We kind of talked about how across APEMIA and Americas, we're seeing good growth from a VAS standpoint, and also across the various elements of our services portfolio, we're seeing good growth. So that's kind of pretty comforting to me to see that we are actually executing across that VAS growth algorithm in a meaningful manner. The last point I'll make is enabling this growth has been the constant look we do from an innovation standpoint organically. We've done a bunch of new innovation, which we've announced, but also what we're doing to expand our addressable market. Examples of that would be things like Recorded Future, which takes us into new and different and fast-growing spaces like threat intelligence. So if I had to bring all of this together for you, I'd say good solid growth in VAS in 2025.

Michael Miebach: But if you think about it from the perspective of cybersecurity solutions, data insight solutions, those are all the types of services that ground it in fundamental growth drivers and needs of the growing digital economy. So differentiated underlying growth drivers, everything that Sanjay just said. And all of this is powered by a significantly changing distribution network that we're using by selling these services through many others other than our payment partners. Thank you. Our next question comes from Tien-Tsin Huang from JPMorgan. Please go ahead. Your line is open. Hey, appreciate it. Great growth here. I wanted to ask about Capital One a little differently. I think it's Michael, you mentioned hundreds of issuing wins in 2025. I'm curious for this year in 2026, any updated callouts on timing and impact on, let's say, the KPIs from all these conversions and renewals in 2026?

Michael Miebach: How does the renewal pipeline in general look, and any callouts on pricing or competitive intensity, that kind of thing? Thanks. Hey, Tien-Tsin Huang, Sanjay. Why don't I take the question? Look, I mean, again, from an overall customer engagement standpoint and a deal pipeline standpoint, I'd say coming into 2026 is. I'd put it in the realm of pretty normal for what we see at this time of the year compared to prior. So active pipeline, lots of great engagement taking place with numerous customers. Nothing unusual to call out there in terms of the pipeline of deals. As it relates to the competitive environment, we're in a competitive space. There's no question about it. And what we're also very clear about is that in a competitive space, you've got to differentiate.

Michael Miebach: So we really got to push on that, which is the way we kind of go about doing what we do. That's a good thing to say. Yeah. I think it's a really important question, Tien-Tsin. So when you look across, I'm just looking back at my prepared remarks, 16 minutes, and you see all the wins in there. So the pipeline is healthy. But it sounds like maybe it's broad stroke. We are very focused. Based on what Sanjay just said, the focus on affluent, for example, on cross-border, on really high-octane kind of partnerships that help our customers, but also us, really important. And then, as I called it out, it's not just about share. It's about secular opportunity. So wins in the secular opportunity context are just as important when I think about small business, when I think about B2B, and so forth. So full on, really full on.

Michael Miebach: That's the plan for 2026, but not for everything, as Sanjay just said. Yep. No, that's very good detail there. Just forgive me for asking one other clarification question. Just if it looks similar to 2025, can we infer that the rebate incentive outlook is also similar? Yeah. Here's what I'd share with you. I am not going to give you a full year rebate guidance. But what I will share with you is that in Q1, we expect our contrast, a percentage of payment network assessments to be flat to slightly down sequentially compared to Q4, very much in line with what you've seen in the past. Terrific. Thank you both. That's what he really wanted to know. Our next question comes from Darrin Peller from Wolf Research. Please go ahead. Your line is open. Hey, thanks, guys. Nice job. Just following up on guidance for a minute.

Michael Miebach: When you look at the trajectory of it, obviously starting off and then calling for maybe a slight acceleration as the year progresses to the high end of low double digits from the low end of low double digits, maybe just remind us the puts and takes as the year progresses. And then, more importantly, just the inputs. What are you assuming the consumer does and spend volumes do both cross-border, domestically? What are your thoughts on the potential for more stimulus? Is that embedded in your guide? So any more color on that would be great. Thanks, guys. Sure, Darrin. So our base case, which is the basis of the guidance that we shared with you, is that consumer and business spending remains healthy. That's kind of our going-in position because that's what we've seen, right?

Michael Miebach: And like Michael said earlier, there are different numbers as it relates to the soft data from a sentiment standpoint, and then there's the hot data. And that's what we kind of see. We've kind of triangulated around the best we can. And our base case assumes a strong consumer. So that's kind of the starting point of where we are from a driver standpoint. That contemplates the dialogue around a fairly healthy tax refund season, etc., etc. All of that's taken into consideration. Again, recognize there's the US, and then we're a global business as well. We've got 70% of our business roughly coming from overseas markets. So I think it's important to kind of think about it in that whole context. Now, I think you're asking the question as it relates to the cadence between the first half and the second half, which is something I shared.

And like Michael said earlier, there are different numbers as it relates to the soft data from a sentiment standpoint, and then there's the hot data. And that's what we kind of see. We've kind of triangulated around the best we can. And our base case assumes a strong consumer. So that's kind of the starting point of where we are from a driver standpoint. That contemplates the dialogue around a fairly healthy tax refund season, etc., etc. All of that's taken into consideration. Again, recognize there's the US, and then we're a global business as well. We've got 70% of our business roughly coming from overseas markets. So I think it's important to kind of think about it in that whole context. Now, I think you're asking the question as it relates to the cadence between the first half and the second half, which is something I shared.

Michael Miebach: Sanjay, I think you called out pricing as a driver across every revenue line this quarter. So just how should we think about the durability of what we're seeing come through across each of the line items, especially on cross-border, which has seen a nice pricing tailwind over the course of the year? And then in terms of magnitude, what you're building into the guide for 2026 for pricing relative to 2025? Thanks. Yeah. I think it's important to actually understand how we go about thinking about what we do and what we call pricing as well, right? It's kind of very much a function of what is the nature of products and solutions and services that we have delivered, whether they're brand new in nature and/or they are modifications or improvements in terms of delivering incremental value to our customers, which comes into play.

Michael Miebach: Our next question comes from Harshita Rawat from Bernstein. Please go ahead. Your line is open. Hi. Good morning. I want to follow up on your recent announcements on Agentic, including the suite you just announced. It's early in this era, lots of experimentation happening. But maybe help us frame the different pieces of the capabilities here. You have the identity trust layer, now the platform for custom AI agents. But there's so much fragmentation, competing protocols. I know you're partnering with Google and OpenAI, among others. So help us frame this and talk about why you believe you'll see Mastercard not only growing in Agentic era, but also thriving with respect to the trust, governance, personalization, and other services you can provide. Thank you. Thank you, Harshita. This is a great question. What an exciting space.

Michael Miebach: And it might be one of those use cases, AI-driven use cases that meet our reality much faster than other AI use cases out there. So I think Agentic Commerce is going to come fast. So this whole idea of a consumer using an agent to drive have a better commerce journey, I think it just resonates with people. You get better quality insights. You get better recommendations. So from that perspective, that's just kind of the starting headline. And hence, when you then build out from that, we've been at this for over eight months now with Agent Pay launching that as our framework around recognizing agents, ensuring identity, and then bringing all the protections of payments into the world of Agentic Commerce. So those are all consumer protections and user experience journeys that are understood by consumers, also by our partners. Take Google, for example.

And it might be one of those use cases, AI-driven use cases that meet our reality much faster than other AI use cases out there. So I think Agentic Commerce is going to come fast. So this whole idea of a consumer using an agent to drive have a better commerce journey, I think it just resonates with people. You get better quality insights. You get better recommendations. So from that perspective, that's just kind of the starting headline. And hence, when you then build out from that, we've been at this for over eight months now with Agent Pay launching that as our framework around recognizing agents, ensuring identity, and then bringing all the protections of payments into the world of Agentic Commerce. So those are all consumer protections and user experience journeys that are understood by consumers, also by our partners. Take Google, for example.

Michael Miebach: So this isn't new, which gives me great confidence because it's understood and it can be delivered at scale. We're a really important partner in this whole journey. So there's new entrants, LLM companies that haven't been really in the commerce space, contrary to somebody like Google, maybe. So yet again, that puts it on us to engage with these partners. From the outset, we ensured, as we do in other emerging payment spaces, that the standards are set. We put out protocols. Others put out protocols. There's a question on how do these protocols all interact with each other. Well, it's the focus on consumer protection, safety, security, and cyber, and registering agents and making sure they're real and all of that. That is really driving this. And these protocols generally reinforce each other. So from that perspective, we feel we're very centered here.

So this isn't new, which gives me great confidence because it's understood and it can be delivered at scale. We're a really important partner in this whole journey. So there's new entrants, LLM companies that haven't been really in the commerce space, contrary to somebody like Google, maybe. So yet again, that puts it on us to engage with these partners. From the outset, we ensured, as we do in other emerging payment spaces, that the standards are set. We put out protocols. Others put out protocols. There's a question on how do these protocols all interact with each other. Well, it's the focus on consumer protection, safety, security, and cyber, and registering agents and making sure they're real and all of that. That is really driving this. And these protocols generally reinforce each other. So from that perspective, we feel we're very centered here.

Michael Miebach: The cards ecosystem brings a lot of value, and that is understood, and it will bring it into this space. So then you kind of ask yourself and say, "Well, from here on, what's different then?" Well, new relationships are being built. Of course, we're stepping forward with a differentiated set of solutions that we can offer. We just talked about services earlier. That's an opportunity. You can start to see that there's a transaction opportunity in all of this because a basket might be spread over many merchants. So that's another opportunity. You could also see that the application of services, for example, tokenization, gets to see a very different path than it might see without Agentic Commerce. So these are all aspects that make me very excited about this. We're leaning across the ecosystem. Everybody wants to talk about this.

The cards ecosystem brings a lot of value, and that is understood, and it will bring it into this space. So then you kind of ask yourself and say, "Well, from here on, what's different then?" Well, new relationships are being built. Of course, we're stepping forward with a differentiated set of solutions that we can offer. We just talked about services earlier. That's an opportunity. You can start to see that there's a transaction opportunity in all of this because a basket might be spread over many merchants. So that's another opportunity. You could also see that the application of services, for example, tokenization, gets to see a very different path than it might see without Agentic Commerce. So these are all aspects that make me very excited about this. We're leaning across the ecosystem. Everybody wants to talk about this.

Michael Miebach: Could you just talk a little bit about some of the things that you could do or pull or things you've done in the past when political things have popped up to kind of mitigate downside to top line and bottom line? Thanks. Yeah. So it's a very important topic. We are probably one of the most global businesses in 20 countries and territories. So as I said in my prepared remarks, we're monitoring geopolitics all the time. We have through the past years, and we're doing so today. It's really important for us to understand that this is not just about geopolitics. If you look at our business model, we're aligned in terms of our interest with banks around the world. We're aligned with merchants and companies around the world. Our focus on driving an inclusive digital economy aligns us with broader populations, NGOs, and so forth.

Michael Miebach: So it's not just about the politics when you look at the geopolitical landscape, and we're engaging with all partners. An important aspect of this is we don't do the same thing everywhere. This is not an off-the-shelf kind of solution that Mastercard brings. We always strive to understand the local needs, the local considerations. Of course, it's very different in Africa, which is why we partnered with MTN. It's very different in the UAE versus Europe. We just announced in October last year that we're bringing three additional data centers into Europe, $250 million of investments on the ground to drive better resilience and competitiveness for Europe. So these are all aspects that we can do today because we've invested in our technology. We continue to invest in our technology.

Michael Miebach: So some of the comments that Sanjay earlier made about reprioritization and where we take charges is because that is what we need to fuel, that we have that flexibility to engage with a country on their path and be a true partner for that. At the same time, we bring global best practice and global cybersecurity solutions, and that sets us apart to navigate that world very actively. This will only work with a strong public policy, engagement process, and spending time with governments and understand where they want to go. That is what we do because we're in offices with 125 offices around the world to really stay very close to the local needs. Yeah. And I guess, Bryan, you asked what kind of levers do we have in uncertain environments to the extent we need to pull levers.

Michael Miebach: And so if to the extent you're asking what kind of levers are there because revenues start to actually decline, revenues coming down has a natural effect of bringing cost of goods sold down as well. So sufficient levers. We'll never be complacent around this. But I do want to leave you with one thought, which is we do care about investing for the long term, and that's something we will continue to do throughout up and down cycles because the set of opportunities in front of us is so big that we shouldn't lose sight of that. Thank you very much. Michael, any closing comments? Yes. Yes. So we just spent the past hour talking about our diversified global business and how we're winning in the market. None of this is possible, of course, without our colleagues around the world, the dedicated teams.

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