Credit Card Earnings This Week from Visa (V) and MasterCard (MA): Dare to Bet Against the U.S. Consumer?!

Correction to the July 25, 2026 Market Minute Week in Review article. For the week ended July 24, the Dow Jones Industrial Average -0.4%, the S&P 500 Index -0.6%, the Russell 2000 Index -1.1%, and the Nasdaq 100 Index -1.6%. The Philadelphia Semiconductor Index +1.2%.

Investors get an important read on the health of the global consumer when payment giants Visa (V) and Mastercard (MA) report earnings this week.

Visa is scheduled to report after the close on Tuesday, July 28, while Mastercard reports before the open on July 30. The companies provide a real-time look at the health of the consumer and spending trends. The reports will provide some clarity on a few key narratives: Are consumers still spending despite elevated interest rates, inflation pressures, and moderating economic growth?

Unlike retailers that sell products, restaurant spending, travel, and other habits that expose investors, Visa and Mastercard provide a broad-based view of overall economic activity. Payment volumes, cross-border transactions, and purchase activity can reveal consumer trends before they show up in government reports.

Visa is set to report its third-quarter fiscal 2026 results on July 28, after the market close. The Zacks consensus estimate for the soon-to-be-reported quarter’s earnings is pegged at $3.23 per share on revenues of $11.35 billion. The biggest driver remains cross-border volume. International travel has been one of Visa's strongest growth engines over the last several years. Investors will also focus on commercial and business payments and early adoption of digital wallets, real-time payments, and stablecoin initiatives.

Visa's gross profit margin is approximately 97%, reflecting its asset-light model and highly scalable digital payments network. Last quarter, Visa reported Q2 Payments volume up 9% and reported that its Q2 cross-border volume total rose 12%. The company also authorized a new $20 billion, multi-year share repurchase program. Despite all the positive results, the stock is only up 1.4% this year as of Friday’s closing price, although it is up 50% over the last three years.

MasterCard (MA) has mirrored Visa's strength while often delivering faster growth in cross-border activity recently. MasterCard has begun to differentiate itself through value-added services, including fraud prevention, cybersecurity, data analytics, and consulting. These businesses generate high-margin recurring revenue and help reduce dependence on pure transaction growth. The Zacks Consensus Estimate for revenue is projects quarterly net sales of $9.06 billion, up 11.37% from the year-ago period when they report on Thursday. Last quarter, MasterCard said they see Q2 net revenue growth at the “low end of low double digits” with the Q2 consensus near $9.12 billion. They also stated they see Q2 operating expenses at the "low end of low double digits." MasterCard shares have lagged and are down 5.5% this year but are up over 23% over the last three years.

For investors, these reports are about much more than Visa and Mastercard. They represent clarity into the health of consumers and global commerce. Geopolitical risks, inflationary pressures, and low consumer sentiment have created headwinds for the consumer. If payment volumes, transaction counts, and cross-border spending remain robust, it would reinforce the view that economic activity is holding up despite macro uncertainty.

The headline numbers the credit card companies report will matter, but clarity on consumer spending trends, travel demand, and the future of digital payments will likely determine whether Visa and Mastercard can reignite a run through the second half of 2026.

Warren Buffett famously said, "Never bet against America," emphasizing that despite severe interruptions and challenges, the country's economic progress and potential remain breathtaking. This week we will get some clarity from the front lines with the reports from Visa and Mastercard.

The main question investors should focus on is consumer spending. The consumer has remained resilient in the current K-Shaped economy but can it last?!

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, futures commission merchant or forex dealer member.

Charles Schwab Media Productions Company and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions.

Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.