Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following tables provide a summary of the growth trends in our key drivers:

						Three Months Ended June 30,																								Six Months Ended June 30,
						2026												2025												2026												2025
						Increase/(Decrease)																								Increase/(Decrease)
						USD						Local						USD						Local						USD						Local						USD						Local
Mastercard-branded GDV growth 1						9%						8%						9%						9%						10%						8%						8%						9%
United States						6%						6%						6%						6%						5%						5%						7%						7%
Worldwide less United States						11%						9%						11%						10%						13%						9%						8%						10%
Cross-border volume growth 1						14%						12%						19%						15%						17%						12%						15%						15%

						Three Months Ended June 30,												Six Months Ended June 30,
						2026						2025						2026						2025
						Increase/(Decrease)												Increase/(Decrease)
Switched transactions growth						9%						10%						9%						10%

Note: Effective 2026, our key drivers above include Venezuela cross-border activity, as applicable.

1 Excludes volume generated by Maestro and Cirrus cards.

Key Metrics related to the Payment Network

Assessments represent agreed-upon standard pricing provided to our customers based on various forms of payment-related activity. Assessments are used internally by management to monitor operating performance as it allows for comparability and provides visibility into cardholder trends. Assessments do not represent our net revenue.

The following provides additional information on our key metrics related to the payment network:

• Domestic assessments** are charges based on activity related to cards that carry the Company’s brands where the merchant country and the country of issuance are the same. These assessments are primarily driven by the domestic dollar volume of activity (e.g., domestic purchase volume, domestic cash volume) or the number of cards issued.

• Cross-border assessments** are charges based on activity related to cards that carry the Company’s brands where the merchant country and the country of issuance are different. These assessments are primarily driven by the cross-border dollar volume of activity (e.g., cross-border purchase volume, cross-border cash volume).

• Transaction processing assessments** are charges primarily driven by the number of switched transactions on our payment network. Switching activities include:

◦Authorization, the process by which a transaction is routed to the issuer for approval

◦Clearing, the determination and exchange of financial transaction information between issuers and acquirers after a transaction has been successfully conducted at the point of interaction

◦Settlement, which facilitates the determination and exchange of funds between parties

These assessments can also include connectivity services and network access, which are based on the volume of data transmitted and the number of authorization and settlement messages.

• Other network assessments** are charges for licensing, implementation and other franchise fees.

The following table provides a summary of our key metrics related to the payment network:

						Three Months Ended June 30,												Increase/(Decrease)												Six Months Ended June 30,												Increase/(Decrease)
						2026						2025						As reported						Currency-neutral						2026						2025						As reported						Currency-neutral
						($ in millions)
Domestic assessments						$	3,154					$	2,789					13%						10%						$	6,050					$	5,447					11%						8%
Cross-border assessments						3,460						2,848						21%						20%						6,650						5,443						22%						19%
Transaction processing assessments						4,508						3,971						14%						12%						8,732						7,498						16%						13%
Other network assessments						326						260						25%						23%						603						491						23%						20%

MASTERCARD JUNE 30, 2026 FORM 10-Q 35

PART I

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Foreign Currency

Currency Impact

Our primary functional currencies are the U.S. dollar, euro, British pound and the Brazilian real. Our overall operating results are impacted by currency translation, which represents the effect of translating operating results where the functional currency is different than our U.S. dollar reporting currency.

Our operating results are also impacted by transactional currency. The impact of the transactional currency represents the effect of converting revenue and expense transactions occurring in a currency other than the functional currency. Changes in currency exchange rates directly impact the calculation of GDV, which is used in the calculation of our key metrics related to domestic assessments and cross-border assessments as well as certain volume-related rebates and incentives. GDV is calculated based on local currency spending volume converted to U.S. dollars and euros using average exchange rates for the period. As a result, our key metrics related to domestic assessments and cross-border assessments as well as certain volume-related rebates and incentives are impacted by the strengthening or weakening of the U.S. dollar and euro versus local currencies. For example, our billing in Australia is in the U.S. dollar, however, consumer spend in Australia is in the Australian dollar. The transactional currency impact of converting Australian dollars to our U.S. dollar billing currency will have an impact on the revenue generated. The strengthening or weakening of the U.S. dollar is evident when GDV growth on a U.S. dollar-converted basis is compared to GDV growth on a local currency basis. For the three and six months ended June 30, 2026, GDV on a U.S. dollar-converted basis increased 9% and 10%, respectively, while GDV on a local currency basis increased 8% for each of the periods, versus the comparable periods in 2025. Further, the impact from transactional currency occurs in our key metrics related to transaction processing assessments and other network assessments as well as value-added services and solutions revenue and operating expenses when the transacting currency of these items is different than the functional currency of the entity.

To manage the impact of foreign currency variability on anticipated revenues and expenses, we may enter into foreign exchange derivative contracts and designate such derivatives as hedging instruments in a cash flow hedging relationship as discussed further in Note 16 (Derivative and Hedging Instruments) to the consolidated financial statements included in Part I, Item 1.

Foreign Exchange Activity

We incur foreign currency gains and losses from remeasuring monetary assets and liabilities that are denominated in a currency other than the functional currency of the entity. To manage this foreign exchange risk, we may enter into foreign exchange derivative contracts to economically hedge the foreign currency exposure of our nonfunctional currency monetary assets and liabilities. The gains or losses resulting from the changes in fair value of these contracts are intended to reduce the potential effect of the underlying hedged exposure and are recorded net within general and administrative expenses on the consolidated statements of operations. The impact of this foreign exchange activity, including the related hedging activities, has not been eliminated in our currency-neutral results.

Our foreign exchange risk management activities are discussed further in Note 16 (Derivative and Hedging Instruments) to the consolidated financial statements included in Part I, Item 1.

Financial Results

Net Revenue

The components of net revenue were as follows:

						Three Months Ended June 30,												Increase/(Decrease)						Six Months Ended June 30,												Increase/(Decrease)
						2026						2025									2026						2025
						($ in millions)
Payment network						$	5,451					$	4,945					10%						$	10,399					$	9,377					11%
Value-added services and solutions						3,826						3,188						20%						7,276						6,006						21%
Total net revenue						$	9,277					$	8,133					14%						$	17,675					$	15,383					15%

For the three months ended June 30, 2026:

Net revenue increased 14%, or 12% on a currency-neutral basis, versus the comparable period in 2025. The increase in net revenue was attributable to growth in both our payment network and value-added services and solutions.

36 MASTERCARD JUNE 30, 2026 FORM 10-Q

PART I

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Net revenue from our payment network increased 10%, or 8% on a currency-neutral basis, versus the comparable period in 2025. The increase was primarily driven by growth in domestic and cross-border dollar volumes and an increase in the number of switched transactions, reflecting growth trends across all of our key drivers. Net revenue from our payment network included $5,997 million of rebates and incentives provided to customers, which increased 22%, or 20% on a currency-neutral basis, versus the comparable period in 2025, primarily due to an increase in our key drivers as well as new and renewed deals.

Net revenue from our value-added services and solutions increased 20%, or 18% on a currency-neutral basis, versus the comparable period in 2025. The increase was driven primarily by (1) growth in our underlying key drivers, (2) our security solutions, consumer acquisition and engagement services, digital and authentication solutions and business and market insights and (3) pricing.

For the six months ended June 30, 2026:

Net revenue increased 15%, or 12% on a currency-neutral basis, versus the comparable period in 2025. The increase in net revenue was attributable to growth in both our payment network and value-added services and solutions.

Net revenue from our payment network increased 11%, or 8% on a currency-neutral basis, versus the comparable period in 2025. The increase was primarily driven by growth in domestic and cross-border dollar volumes and an increase in the number of switched transactions, reflecting growth trends across all of our key drivers. Net revenue from our payment network included $11,636 million of rebates and incentives provided to customers, which increased 22%, or 19% on a currency-neutral basis, versus the comparable period in 2025, primarily due to an increase in our key drivers as well as new and renewed deals.

Net revenue from our value-added services and solutions increased 21%, or 18% on a currency-neutral basis, versus the comparable period in 2025. The increase was driven primarily by (1) growth in our underlying key drivers, (2) our security solutions, digital and authentication solutions, consumer acquisition and engagement services and business and market insights and (3) pricing.

See Note 3 (Revenue) to the consolidated financial statements included in Part II, Item 8 of our 2025 Form 10-K for further discussion of our revenue recognition policies.

Drivers of Change

The following tables summarize the drivers of change in net revenue:

						Three Months Ended June 30, 2026
						Increase/(Decrease)
						Operational																		Acquisitions and Dispositions 1						Currency Impact 2												Total
Payment network						8		%																			**						2		%													10		%
Value-added services and solutions						19		%																			—		%				2		%													20		%
Net revenue						12		%																			—		%				2		%													14		%

						Six Months Ended June 30, 2026
						Increase/(Decrease)
						Operational																		Acquisitions and Dispositions 1						Currency Impact 2												Total
Payment network						8		%																			**						3		%										11		%
Value-added services and solutions						18		%																			—		%				3		%										21		%
Net revenue						12		%																			—		%				3		%										15		%

Note: Tables may not sum due to rounding.

** Not applicable.

1Represents the impact of acquisitions and dispositions completed during 2026 and 2025.

2Includes the translational and transactional impact of currency and the related impact of our foreign exchange derivative contracts designated as cash flow hedging instruments. See “Non-GAAP Financial Information - Currency-neutral Growth Rates” for further information on our currency impact non-GAAP adjustment.

MASTERCARD JUNE 30, 2026 FORM 10-Q 37

PART I

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Operating Expenses

For the three months ended June 30, 2026, operating expenses increased 10% versus the comparable period in 2025. Adjusted operating expenses increased 11%, or 10% on a currency-neutral basis, versus the comparable period in 2025.

For the six months ended June 30, 2026, operating expenses increased 11% versus the comparable period in 2025. Adjusted operating expenses increased 11%, or 9% on a currency-neutral basis, versus the comparable period in 2025.

The components of operating expenses were as follows:

						Three Months Ended June 30,												Increase/ (Decrease)						Six Months Ended June 30,												Increase/ (Decrease)
						2026						2025									2026						2025
						($ in millions)
General and administrative						$	3,082					$	2,766					11%						$	6,121					$	5,289					16%
Advertising and marketing						217						213						2%						370						365						1%
Depreciation and amortization						309						281						10%						608						556						9%
Provision for litigation						82						96						(15)%						82						247						(67)%
Total operating expenses						3,690						3,356						10%						7,181						6,457						11%
Special Items 1						(82)						(96)						(15)%						(284)						(247)						15%
Adjusted total operating expenses 1						$	3,608					$	3,260					11%						$	6,897					$	6,210					11%

Note: Table may not sum due to rounding.

1 See “Non-GAAP Financial Information” for further information on our non-GAAP adjustments and the reconciliation to GAAP reported amounts.

Drivers of Change

The following tables summarize the drivers of change in operating expenses:

						Three Months Ended June 30, 2026
						Increase/(Decrease)
						Operational						Acquisitions and Dispositions 1						Currency Impact 2, 3						Special Items 3						Total
General and administrative						12%						(1)%						1%						**						11%
Advertising and marketing						1%						—%						1%						**						2%
Depreciation and amortization						10%						—%						—%						**						10%
Provision for litigation						**						**						**						(15)%						(15)%
Total operating expenses						11%						(1)%						1%						(1)%						10%

						Six Months Ended June 30, 2026
						Increase/(Decrease)
						Operational						Acquisitions and Dispositions 1						Currency Impact 2, 3						Special Items 3						Total
General and administrative						11%						(1)%						2%						4%						16%
Advertising and marketing						(1)%						—%						2%						**						1%
Depreciation and amortization						8%						—%						1%						**						9%
Provision for litigation						**						**						**						(67)%						(67)%
Total operating expenses						10%						—%						2%						—%						11%

Note: Tables may not sum due to rounding.

** Not applicable.

1Represents the impact of acquisitions and dispositions completed during 2026 and 2025.

2Represents the translational and transactional impact of currency.

3See “Non-GAAP Financial Information” for further information on our non-GAAP adjustments and the reconciliation to GAAP reported amounts.

38 MASTERCARD JUNE 30, 2026 FORM 10-Q

PART I

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General and Administrative

For the three months ended June 30, 2026, general and administrative expenses increased 11%, on both an as-reported and currency-neutral basis, versus the comparable period in 2025, primarily due to higher personnel and data processing costs to support the continued investment in our strategic initiatives across payment network and value-added services and solutions, as well as fulfillment costs to deliver marketing services to our customers.

For the six months ended June 30, 2026, general and administrative expenses increased 16%, or 14% on a currency-neutral basis, versus the comparable period in 2025, which included a 4 percentage point increase from a restructuring charge of $202 million. The remaining increase was primarily due to higher personnel and data processing costs to support the continued investment in our strategic initiatives across payment network and value-added services and solutions, fulfillment costs to deliver marketing services to our customers, as well as balance sheet remeasurement losses primarily due to unfavorable foreign exchange activity.

The components of general and administrative expenses were as follows:

						Three Months Ended June 30,												Increase/ (Decrease)						Six Months Ended June 30,												Increase/(Decrease)
						2026						2025									2026						2025
						($ in millions)
Personnel 1						$	1,947					$	1,852					5%						$	3,984					$	3,540					13%
Professional fees						128						107						19%						252						220						14%
Data processing and telecommunications						369						314						18%						718						606						19%
Foreign exchange activity 2						59						41						43%						117						42						**
Other						579						452						28%						1,050						881						19%
Total general and administrative expenses						$	3,082					$	2,766					11%						$	6,121					$	5,289					16%

** Not meaningful.

1For the six months ended June 30, 2026, total general and administrative expenses includes a restructuring charge of $202 million. See “Non-GAAP Financial Information” for further information.

2Foreign exchange activity includes the impact of remeasurement of assets and liabilities denominated in foreign currencies net of the impact of gains and losses on foreign exchange derivative contracts. See Note 16 (Derivative and Hedging Instruments) to the consolidated financial statements included in Part I, Item 1 for further discussion.

Advertising and Marketing

For the three months ended June 30, 2026, advertising and marketing expenses increased 2%, or 1% on a currency-neutral basis, versus the comparable period in 2025.

For the six months ended June 30, 2026, advertising and marketing expenses increased 1%, versus the comparable period in 2025. On a currency-neutral basis, advertising and marketing expenses decreased 1%, versus the comparable period in 2025.

Depreciation and Amortization

For the three months ended June 30, 2026, depreciation and amortization expenses increased 10%, on both an as-reported and currency-neutral basis, versus the comparable period in 2025. The increase was primarily due to higher capitalized software amortization, which is in line with the increase in capitalized software driven by the continued growth of our business.

For the six months ended June 30, 2026, depreciation and amortization expenses increased 9%, or 8% on a currency-neutral basis, versus the comparable period in 2025. The increase was primarily due to higher capitalized software amortization, which is in line with the increase in capitalized software driven by the continued growth of our business.

Provision for Litigation

For the three and six months ended June 30, 2026, we recorded charges of $82 million, which includes a legal provision associated with the ATM non-discrimination rule surcharge complaints, a change in estimate related to the claims of merchants who opted out of the U.S. merchant class litigation and provisions associated with various other legal matters. See “Non-GAAP Financial Information” in this section and Note 14 (Legal and Regulatory Proceedings) to the consolidated financial statements included in Part I, Item 1 of this Report for further discussion.

MASTERCARD JUNE 30, 2026 FORM 10-Q 39

PART I

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Other Income (Expense)

The components of total other income (expense) were as follows:

						Three Months Ended June 30,												Favorable/ (Unfavorable)						Six Months Ended June 30,												Favorable/(Unfavorable)
						2026						2025									2026						2025
						(in millions)
Investment income						$	88					$	70					$	18					$	169					$	158					$	11
Gains (losses) on equity investments, net						(2)						4						(6)						(68)						(25)						(43)
Interest expense						(218)						(195)						(23)						(403)						(377)						(26)
Other income (expense), net 1						31						16						15						106						21						85
Total other income (expense)						(101)						(105)						4						(196)						(223)						27
(Gains) losses on equity investments, net 2						2						(4)						6						68						25						43
Adjusted total other income (expense) 2						$	(100)					$	(109)					$	9					$	(128)					$	(198)					$	70

Note: Table may not sum due to rounding.

1Other income (expense), net increased in the three and six months ended June 30, 2026, versus the comparable period in 2025, primarily driven by government grants.

2See “Non-GAAP Financial Information” for further information on our non-GAAP adjustments and the reconciliation to GAAP reported amounts.

Income Taxes

The effective income tax rates for the three months ended June 30, 2026 and 2025 were 20.0% and 20.8%, respectively. The adjusted effective income tax rates for the three months ended June 30, 2026 and 2025 were 20.0% and 20.9%, respectively. The effective income tax rates for the six months ended June 30, 2026 and 2025 were 19.7% and 19.8%, respectively. The adjusted effective income tax rates for the six months ended June 30, 2026 and 2025 were 19.7% and 20.1%, respectively. Both the as-reported and as-adjusted effective income tax rates for the three and six months ended June 30, 2026 were lower versus the comparable periods in 2025 due to partially offsetting tax impacts in 2026, including discrete tax benefits in the periods.

Liquidity and Capital Resources

We rely on existing liquidity (our cash, cash equivalents and investments), cash generated from operations and access to capital to fund our global operations, credit and settlement exposure, capital expenditures, investments in our business and current and potential obligations. The following table summarizes the cash, cash equivalents, investments and credit available to us:

			June 30, 2026						December 31, 2025
			(in billions)
Cash, cash equivalents and investments 1			$	11.6					$	10.9
Available under the revolving credit facility 2			7.3						8.0

1 Investments include available-for-sale securities and held-to-maturity securities. This amount excludes restricted cash and restricted cash equivalents and restricted security deposits held for customers at June 30, 2026 and December 31, 2025 of $2.7 billion.

2 Represents amounts remaining available under our committed unsecured $8 billion revolving credit facility (the “Credit Facility”), which has been reduced by commercial paper outstanding at June 30, 2026. The Credit Facility supports our commercial paper program and borrowings under our commercial paper program and the Credit Facility can total up to $8 billion. At June 30, 2026 and December 31, 2025, we had no borrowings under the Credit Facility.

We believe that our existing liquidity, our cash flow generating capabilities and our access to capital resources are sufficient to satisfy our future operating cash needs, capital asset purchases, outstanding commitments and other liquidity requirements associated with our existing operations and potential obligations, which include litigation provisions and credit and settlement exposure.

Our liquidity and access to capital could be negatively impacted by global credit market conditions. We guarantee the settlement of many of the transactions between our customers. Historically, payments under these guarantees have not been significant; however, historical trends may not be indicative of potential future losses. The risk of loss on these guarantees is specific to individual customers, but may also be driven by regional or global economic and market conditions, including, but not limited to the health of the financial institutions in a country or region. See Note 15 (Settlement and Other Risk Management) to the consolidated financial statements in Part I, Item 1 for a description of these guarantees.

40 MASTERCARD JUNE 30, 2026 FORM 10-Q

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our liquidity and access to capital could also be negatively impacted by the outcome of any of the legal or regulatory proceedings to which we are a party. For additional discussion of these and other risks facing our business, see Part I, Item 1A - Risk Factors of our 2025 Form 10-K and Note 14 (Legal and Regulatory Proceedings) to the consolidated financial statements in Part I, Item 1 of this Report.

Cash Flows

The table below shows a summary of the cash flows from operating, investing and financing activities:

			Six Months Ended June 30,
			2026						2025
			(in millions)
Net cash provided by operating activities			$	6,772					$	6,983
Net cash used in investing activities			(879)						(567)
Net cash used in financing activities			(5,040)						(5,993)

Net cash provided by operating activities decreased $211 million for the six months ended June 30, 2026, versus the comparable period in 2025, primarily due to higher net income after adjusting for non-cash items, more than offset by higher customer incentive payments and cash paid for litigation settlements.

Net cash used in investing activities increased $312 million for the six months ended June 30, 2026, versus the comparable period in 2025, primarily due to higher purchases of property and equipment.

Net cash used in financing activities decreased $953 million for the six months ended June 30, 2026, versus the comparable period in 2025, primarily due to higher cash proceeds received from debt issuances and lower repayments of debt in the current year, partially offset by higher cash paid for repurchases of our Class A common stock and dividends.

Debt and Credit Availability

In June 2026, we issued $5.000 billion principal amount of notes (the “2026 USD Notes”). The net proceeds from the issuance of the 2026 USD Notes, after deducting the original issue discount, underwriting discount and offering expenses, were $4.978 billion.

Our total debt outstanding at June 30, 2026 and December 31, 2025 was $24.6 billion and $19.0 billion, respectively. At June 30, 2026, $2.5 billion of our total debt outstanding is payable within 12 months.

We have a commercial paper program (the “Commercial Paper Program”), under which we are authorized to issue up to $8 billion in outstanding notes, with maturities up to 397 days from the date of issuance. In conjunction with the Commercial Paper Program, we have a committed unsecured $8 billion revolving credit facility (the “Credit Facility”) that was amended and extended in 2025 and now expires in November 2030.

Borrowings under the Commercial Paper Program and the Credit Facility, which may total up to $8 billion, are to be used to provide liquidity for general corporate purposes, including providing liquidity in the event of one or more settlement failures by our customers. In addition, we may borrow and repay amounts under these facilities for business continuity purposes. At June 30, 2026, we had $710 million of commercial paper outstanding, with a weighted-average interest rate of 3.84%. At June 30, 2026, we had no borrowings under the Credit Facility. At December 31, 2025, we had no borrowings under the Commercial Paper Program or Credit Facility. The Commercial Paper Program is supported by the Credit Facility.

See Note 9 (Debt) to the consolidated financial statements included in Part I, Item 1 and Note 13 (Debt) to the consolidated financial statements included in Part II, Item 8 of our 2025 Form 10-K for further discussion on our debt, the Commercial Paper Program and the Credit Facility.

MASTERCARD JUNE 30, 2026 FORM 10-Q 41

PART I

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Dividends and Share Repurchases

We have historically paid quarterly dividends on our outstanding Class A common stock and Class B common stock. Subject to legally available funds, we intend to continue to pay a quarterly cash dividend. The declaration and payment of future dividends is at the sole discretion of our Board of Directors after taking into account various factors, including our financial condition, operating results, available cash and current and anticipated cash needs.

The following table summarizes the dividends declared by our Board of Directors on our outstanding Class A common stock and Class B common stock, payable in 2026:

Date of Declaration						Amount Payable per Share						Record Date						Date Payable						Aggregate Amount (in millions)
December 9, 2025						$	0.87					January 9, 2026						February 9, 2026						$	777
February 10, 2026						$	0.87					April 9, 2026						May 8, 2026						$	771
June 16, 2026						$	0.87					July 9, 2026						August 7, 2026						$	763

Repurchased shares of our common stock are considered treasury stock. In December 2025 and 2024, our Board of Directors approved programs authorizing us to repurchase shares of our Class A common stock up to $14.0 billion and $12.0 billion, respectively. The program approved in 2025 became effective in March 2026, after the completion of the program approved in 2024. The timing and actual number of additional shares repurchased will depend on a variety of factors, including cash requirements to meet the operating needs of the business, legal requirements, as well as the share price and economic and market conditions. The following table summarizes our share repurchase authorizations and repurchase activity of our Class A common stock:

						(in millions, except per share data)
Remaining authorization at December 31, 2025						$	17,461
Dollar-value of shares repurchased for the six months ended June 30, 2026						$	8,933
Remaining authorization at June 30, 2026						$	8,528
Shares repurchased for the six months ended June 30, 2026						17.6
Average price paid per share for the six months ended June 30, 2026						$	508.11
Dollar-value of shares repurchased July 1, 2026 through July 27, 2026						$	697

Note: Table may not sum due to rounding.

Recent Accounting Pronouncements

For a description of recent accounting pronouncements, if any, and the potential impact of these pronouncements refer to Note 1 (Summary of Significant Accounting Policies) to the consolidated financial statements in Part I, Item 1.

Item 3. Quantitative and qualitative disclosures about market risk

Market risk is the potential for economic losses to be incurred on market risk sensitive instruments arising from adverse changes in factors such as foreign currency exchange rates and interest rates. Our exposure to market risk from changes in foreign currency exchange rates and interest rates is limited. Management monitors risk exposures on an ongoing basis and establishes and oversees the implementation of policies governing our funding, investments and use of derivative financial instruments to manage these risks.

Foreign currency and interest rate exposures are managed through our risk management activities, which are discussed further in Note 16 (Derivative and Hedging Instruments) to the consolidated financial statements included in Part I, Item 1.

Foreign Exchange Risk

We enter into foreign exchange derivative contracts to manage currency exposure associated with anticipated receipts and disbursements occurring in a currency other than the functional currency of the entity. We may also enter into foreign exchange derivative contracts to offset possible changes in value of assets and liabilities due to foreign exchange fluctuations. The objective of these activities is to reduce our exposure to gains and losses resulting from fluctuations of foreign currencies against our functional currencies, principally the U.S. dollar and euro. A hypothetical 10% adverse change in the value of the functional currencies could result in a fair value net loss of approximately $319 million and $405 million on our foreign exchange derivative contracts outstanding at June 30, 2026 and December 31, 2025, respectively, before considering the offsetting effect of the underlying hedged activity.

42 MASTERCARD JUNE 30, 2026 FORM 10-Q

PART I