Mastercard Q4 EPS Up 25% with Forward P/E of 26.75
Mastercard reported Q4 2025 adjusted EPS of $4.76, up 25% YoY and beating estimates by 13.3%, driven by cross-border volume growth, switched transactions and value-added services. Valuation stands at a forward P/E of 26.75, PEG of 1.67 and P/B of 60.09, earning the stock a D value grade.
1. Q4 2025 Earnings Performance
Mastercard delivered adjusted EPS of $4.76 in Q4 2025, marking a 25% year-over-year increase and surpassing consensus estimates by 13.3%.
2. Revenue and Transaction Drivers
Growth was fueled by rising cross-border volumes, an uptick in switched transactions and expanded value-added services revenues across core markets.
3. Elevated Operating Expenses
Operating costs rose due to acquisitions and higher administrative expenses, partially offsetting profit gains and pressuring operating margins.
4. Valuation Metrics and Rating
Shares trade at a forward P/E of 26.75, a PEG of 1.67 and a P/B of 60.09, leading to a D grade in the value category and a #3 rank.