Mastercard Outperforms Visa in Quarterly Earnings, But Which is Better Buy?

Visa and Mastercard recently reported their quarterly earnings, with both companies posting a 14% year-over-year revenue gain. The two giants in global commerce processed trillions of dollars in volume each quarter and have nearly ubiquitous acceptance. Visa's net revenue reached $11.6 billion during its third quarter of fiscal 2026, driven by a 10% jump in total payments volume (TPV) and a 13% increase in cross-border volume.

Mastercard's net revenue rose to $9.3 billion during its second quarter, boosted by an 8% growth in TPV and a 12% increase in cross-border volume. The company also generated significant revenue from value-added services such as advisory services, security solutions, and market insights, with a 20% surge.

Mastercard's operating income has risen at a faster clip than Visa's over the past five years, climbing by 19.5% compared to Visa's 11.1%. With its stronger position outside the U.S., Mastercard has greater international exposure and more growth potential. This disparity in volume mix supports the view that Mastercard is the better investment opportunity.

Neil Patel, an analyst, believes that Mastercard will generate a higher return compared to Visa over the next five years due to its robust expansion story and lower valuation. The market appreciates companies with strong growth prospects, and Mastercard's price-to-earnings ratio of 31.1 is slightly cheaper than Visa's.