Mastercard and Visa Remain "Forever Stocks" Despite Sector Struggles

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Despite a weak year for the financials sector, Mastercard and Visa remain "forever stocks" due to their global duopoly, massive profit margins, and forecast industry growth. The payment processing companies have historically enjoyed higher profit margins than other industries due to high-volume demand, automation, and technology-driven business models. The global payment processing solutions market is projected to grow at a 14.5% CAGR to nearly $140 billion by 2030, while the digital payments market is forecast to grow 21.4% to over $361 billion in the same period. Mastercard and Visa control over 90% of credit card and digital payments processed outside of China, allowing them to dictate fees and maintain strong margins.

Why it matters

Mastercard and Visa's dominance in the payment processing industry, coupled with the sector's strong growth projections, make them attractive "forever stocks" for long-term investors seeking high-quality growth. Their ability to maintain high profit margins and consistently beat earnings expectations despite broader financial sector struggles demonstrates the resilience of their business models.

The details

Mastercard achieved record revenue of nearly $33 billion and net income of nearly $15 billion in 2025, driven by a 100% gross margin. The company has reported 21 consecutive quarterly earnings beats. Visa also reported record revenue of $40 billion and net income of nearly $20 billion in 2025, with a gross profit margin of nearly 83%. Visa has not missed on earnings in the past 10 years, meeting expectations twice and beating EPS 38 times.

• Mastercard reported Q4 2025 EPS of $4.76, a nearly 25% year-over-year increase.
• Visa reported 2025 results, with revenue up 11% year-over-year and net income reaching nearly $20 billion.