New York, Jan 29, 2026, 19:06 EST — After-hours
- Mastercard shares jumped roughly 4% in late trading following a profit beat.
- The card network announced plans to slash its workforce by approximately 4% and expects to incur a charge near $200 million
- Investors are now focusing on American Express earnings set for Friday, along with January spending updates
Mastercard shares jumped 4.2% to $543.73 in after-hours trading Thursday, following an earnings beat and the announcement of a 4% cut to its workforce. (MarketScreener)
The update comes at a tricky moment for markets. Investors want clear signs on consumer spending and cross-border travel, and the major card networks usually provide those early clues, ahead of retailers and airlines wrapping up their post-holiday reports.
It also sets the stage for tomorrow’s session. Mastercard led the way with its earnings and a fresh cost outlook. Now, traders will watch closely to see if other companies follow that script on volumes and expenses when they release their numbers.
Mastercard posted adjusted earnings per share of $4.76 on $8.81 billion in revenue for the quarter, surpassing estimates of $4.24 and $8.77 billion. CFO Sachin Mehra noted that spending on the network increased 9% during the quarter and continued at roughly the same rate into January. (MarketWatch)
Mastercard reported a 7% increase in gross dollar volume, measuring the value of purchases and cash withdrawals using its branded cards. Cross-border transaction volume, which typically carries higher fees, jumped 14%. (Reuters)
Mastercard revealed it will take a one-time restructuring charge near $200 million in Q1 2026, tied to plans for cutting about 4% of its global full-time workforce. (Reuters)
On the earnings call, Chief Executive Michael Miebach described the change as a reshuffle, not a retreat. “This will result in reductions in some areas and roles, but lead to further investment and increased focus in others,” he explained, referring to a strategic review. (AOL)
Mastercard projected adjusted net revenue growth for 2026 to land at the upper range of low double digits, with adjusted operating expenses expected to rise in the low double digits as well. The company highlighted “healthy” consumer and business spending during its earnings call, as reported by Barron’s.
By the close of U.S. markets, sector performance was uneven. Visa beat forecasts on Thursday, boosted by higher payment volumes, yet its stock dipped roughly 1% in after-hours trading. (Reuters)
Policy risk remains a looming concern. Barron’s highlighted political pressure stemming from President Donald Trump’s proposal to cap credit-card interest rates at 10%. This debate continues to weigh on card and payments stocks, despite steady spending trends. (Barron’s)
But the upside isn’t guaranteed. If job growth falters or travel demand drops, cross-border volumes—where the higher-margin gains come from—could slow sharply. The restructuring charge will weigh on near-term results before any savings materialize, and investors will be watching closely to see what actually gets funded under the “refocus” plan.
Friday brings another key event: American Express is set to release its quarterly earnings before the opening bell, offering fresh insight on spending habits and credit risk ahead of next week. (Nasdaq)
