PayPal (NASDAQ:PYPL) Issues Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Posted by Francis Steltz on Jul 28th, 2026

PayPal (NASDAQ:PYPL – Get Free Report) announced its quarterly earnings data on Tuesday. The credit services provider reported $1.38 EPS for the quarter, topping analysts’ consensus estimates of $1.28 by $0.10, FiscalAI reports. The firm had revenue of $8.68 billion during the quarter, compared to analyst estimates of $8.47 billion. PayPal had a return on equity of 25.02% and a net margin of 15.00%.The company’s revenue was up 4.8% on a year-over-year basis. During the same period last year, the company earned $1.40 earnings per share.

Here are the key takeaways from PayPal’s conference call:

PayPal raised its 2026 outlook, now expecting approximately $15.6 billion in Transaction Margin Dollars, $5.38 in non-GAAP EPS, low-single-digit online branded checkout TPV growth, at least $6 billion in adjusted free cash flow, and roughly $6 billion in share repurchases.
Second-quarter revenue increased 5% and total payment volume rose 9% on a currency-neutral basis to $486 billion. Venmo and Braintree delivered mid-teens TPV growth, while online branded checkout stabilized at 2% growth for a second consecutive quarter.
Venmo monetization and financial services remain key growth drivers; Venmo TPV grew 14%, debit-card monthly active accounts increased more than 50%, and customers using both Venmo Debit and Pay with Venmo generated more than nine times the average revenue of peer-to-peer-only users.
PayPal is targeting at least $1.5 billion in gross run-rate savings over two to three years through organizational simplification, cloud migration, AI-enabled development, and technology modernization, with approximately $400 million of run-rate savings actions identified for 2026.
Near-term profitability will remain pressured by transformation and growth investments; non-transaction operating expenses are expected to grow 7%-8% for the year, third-quarter non-GAAP EPS is projected to decline by a low-double-digit percentage, and PayPal expects a $120 million-$140 million transformation-related charge in the second half of 2026.

PayPal Stock Performance

Shares of PayPal stock opened at $56.07 on Tuesday. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.26 and a quick ratio of 1.26. The firm has a market cap of $49.46 billion, a price-to-earnings ratio of 10.52, a price-to-earnings-growth ratio of 1.40 and a beta of 1.33. The stock’s 50-day moving average is $45.94 and its 200-day moving average is $47.02. PayPal has a one year low of $38.46 and a one year high of $79.50.

PayPal Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th were issued a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date was Thursday, June 4th. PayPal’s payout ratio is 10.51%.

Key PayPal News

Here are the key news stories impacting PayPal this week:

Positive Sentiment: PayPal reported second-quarter non-GAAP earnings of $1.38 per share, exceeding the $1.28 analyst consensus, while revenue rose 4.8% year over year to $8.68 billion, above expectations of $8.47 billion. PayPal Reports Second Quarter 2026 Results
Positive Sentiment: Management raised its 2026 non-GAAP profit outlook, with full-year earnings guidance reported at approximately $5.38 per share, and increased its transaction-margin-dollar forecast. This provides evidence that the turnaround is improving profitability. PayPal Raises Outlook After Strong Quarter
Positive Sentiment: Operating metrics were constructive: total payment volume increased 10% to $486.4 billion, transactions rose 8% to 6.8 billion, and operating cash flow reached $2.0 billion. PayPal also repurchased about 33 million shares for $1.5 billion and declared a quarterly dividend of $0.14 per share.
Positive Sentiment: The company highlighted expanding stablecoin activity and artificial-intelligence-powered payment tools, suggesting potential longer-term growth opportunities in digital payments and commerce. PayPal Expands Stablecoin Push
Neutral Sentiment: GAAP net income declined 12% to roughly $1.1 billion, and GAAP diluted EPS fell to $1.25 from $1.29 a year earlier. An $81 million non-GAAP adjustment related to strategic investments and crypto assets also adds complexity to interpreting underlying results.
Negative Sentiment: Investors continue to focus on the reported approximately $53 billion takeover proposal from Stripe and Advent International. The offer has been described as low by analysts, and uncertainty over a possible transaction could limit enthusiasm for PayPal’s standalone turnaround. PayPal Turnaround and Sale Questions

Insider Activity at PayPal

In related news, CAO Chris Natali sold 1,337 shares of PayPal stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $49.46, for a total value of $66,128.02. Following the sale, the chief accounting officer owned 1,586 shares of the company’s stock, valued at approximately $78,443.56. This trade represents a 45.74% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 4,612 shares of the company’s stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $42.54, for a total value of $196,194.48. Following the transaction, the insider directly owned 41,567 shares of the company’s stock, valued at approximately $1,768,260.18. This trade represents a 9.99% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 20,612 shares of company stock valued at $966,623. 0.63% of the stock is owned by insiders.

Institutional Trading of PayPal

A number of institutional investors have recently made changes to their positions in PYPL. Brighton Jones LLC grew its position in PayPal by 15.2% in the fourth quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider’s stock valued at $596,000 after purchasing an additional 924 shares in the last quarter. Revolve Wealth Partners LLC bought a new stake in PayPal during the 4th quarter worth about $248,000. Sivia Capital Partners LLC lifted its position in PayPal by 41.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider’s stock worth $332,000 after buying an additional 1,310 shares in the last quarter. United Bank boosted its stake in shares of PayPal by 40.1% during the 2nd quarter. United Bank now owns 17,388 shares of the credit services provider’s stock worth $1,292,000 after buying an additional 4,974 shares during the last quarter. Finally, Federated Hermes Inc. boosted its stake in shares of PayPal by 17.9% during the 2nd quarter. Federated Hermes Inc. now owns 18,909 shares of the credit services provider’s stock worth $1,405,000 after buying an additional 2,865 shares during the last quarter. Institutional investors own 68.32% of the company’s stock.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Needham & Company LLC reaffirmed a “hold” rating on shares of PayPal in a research note on Tuesday, May 5th. Cantor Fitzgerald reissued a “neutral” rating on shares of PayPal in a research note on Thursday, July 16th. BTIG Research restated a “neutral” rating on shares of PayPal in a report on Wednesday, July 15th. Deutsche Bank Aktiengesellschaft cut their price objective on shares of PayPal from $50.00 to $45.00 in a report on Monday, May 11th. Finally, TD Cowen raised shares of PayPal from a “hold” rating to a “buy” rating in a research note on Friday. Nine investment analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, PayPal has an average rating of “Hold” and a consensus price target of $54.96.

View Our Latest Research Report on PYPL

PayPal Company Profile

(Get Free Report)

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and merchants to send and receive payments online, on mobile devices and at the point of sale. The company provides a broad set of payment solutions, including a digital wallet, merchant payment processing, checkout services, invoicing and fraud-management tools. PayPal’s platform is designed to support e-commerce, in-person retail and person-to-person transfers, targeting both individual consumers and businesses of varying sizes.

Key products and services in PayPal’s portfolio include the PayPal wallet and checkout ecosystem, the Venmo peer-to-peer mobile app, Braintree’s developer-focused payment gateway, Xoom for international money transfers, and PayPal Credit and buy-now-pay-later options.