Mastercard’s Q1 2026 earnings beat estimates on strong services growth, while PayPal’s net income fell 13% despite topping forecasts.
Mastercard reported Q1 2026 earnings per share of $4.60, surpassing the $4.41 consensus, as revenue rose 15.8% to $8.398 billion. The company’s operating margin expanded to 61%, driven by 22% growth in value-added services, outpacing its payment network line’s 12% increase.
PayPal, meanwhile, posted a 13% decline in net income despite beating estimates, reflecting ongoing pressure from competitors like Apple Pay and Shop Pay. Its forward P/E ratio near 9 and an 84% five-year stock decline highlight challenges in defending its commoditized checkout business.
Mastercard’s $11.7 billion buyback authorization and accelerating services growth contrast with PayPal’s flat-to-down 2026 guidance under new CEO Enrique Lores. Both stocks trade below year-start levels, but Mastercard’s performance offers clearer upside without a turnaround bet.