PayPal (NASDAQ:PYPL) Issues Earnings Results, Beats Estimates By $0.14 EPS

Posted by Stanley Muller on Oct 27th, 2026

PayPal (NASDAQ:PYPL – Get Free Report) announced its quarterly earnings data on Tuesday. The credit services provider reported $1.45 EPS for the quarter, beating the consensus estimate of $1.31 by $0.14, FiscalAI reports. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The business had revenue of $8.58 billion during the quarter, compared to the consensus estimate of $8.71 billion. During the same period in the previous year, the business earned $1.34 earnings per share. The company’s revenue was up 2.0% on a year-over-year basis.

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

PayPal raised its full-year 2026 guidance, now expecting approximately $15.7 billion in transaction margin dollars, $5.60 in non-GAAP EPS, at least $6.5 billion in adjusted free cash flow, and roughly $6 billion in share repurchases.
Growth is becoming more diversified, with financial services transaction margin dollars exceeding 20% of the total and growing double digits; Venmo TPV grew more than 10% for the eighth consecutive quarter, while Braintree TPV increased 10% and value-added-services attachment rose to 6% from 5%.
Branded checkout remains a constraint, with TPV growth holding around 1%-2% and expected to remain in that range in the fourth quarter. European performance continues to face pressure from the EU de minimis tax-exemption removal, which created an estimated 70-basis-point headwind.
Management reported progress on restructuring and productivity, including more than 2,000 headcount reductions, fewer management layers, and a target of at least $1.5 billion in gross run-rate cost savings over two to three years, with more than $700 million expected by the end of the fourth quarter.
PayPal plans to increase investment in 2027 across consumer experience, merchant checkout, financial services, Venmo, and PSP value-added services. Management expects 2027 EPS growth to be similar to 2026 while positioning the company for stronger transaction-margin growth in 2028 and beyond.

PayPal Trading Down 3.6%

Shares of PYPL stock opened at $54.99 on Tuesday. The firm has a market capitalization of $47.04 billion, a P/E ratio of 10.40, a P/E/G ratio of 1.27 and a beta of 1.27. PayPal has a twelve month low of $38.46 and a twelve month high of $79.21. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.55. The stock’s fifty day simple moving average is $55.85 and its 200 day simple moving average is $50.09.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on PYPL shares. Morgan Stanley set a $45.00 price target on PayPal in a research note on Wednesday, July 29th. TD Cowen raised their price objective on PayPal from $48.00 to $59.00 and gave the company a “hold” rating in a research note on Wednesday, July 29th. The Goldman Sachs Group set a $50.00 target price on PayPal in a research report on Tuesday, July 28th. Jefferies Financial Group raised PayPal from a “hold” rating to a “buy” rating in a research note on Tuesday, July 28th. Finally, Weiss Ratings raised shares of PayPal from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, August 24th. Nine equities research analysts have rated the stock with a Buy rating, thirty-two have given a Hold rating and five have issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $56.42.

Get Our Latest Analysis on PYPL

PayPal News Roundup

Here are the key news stories impacting PayPal this week:

Positive Sentiment: PayPal reported third-quarter non-GAAP EPS of $1.45, beating the $1.31 analyst consensus by $0.14. Adjusted earnings increased despite ongoing competitive and macroeconomic pressures. Earnings Flash
Positive Sentiment: Management raised its 2026 adjusted profit guidance, citing cost reductions, operational efficiencies and progress in its multiyear turnaround. PayPal is targeting approximately $700 million in cost savings by year-end. Reuters report
Positive Sentiment: Fourth-quarter adjusted profit guidance reportedly exceeded Wall Street expectations, offering support ahead of the holiday shopping season and suggesting management expects continued consumer spending strength. Guidance report
Neutral Sentiment: PayPal emphasized that its turnaround is progressing under new leadership, while reports noted that a potential takeover remains a possibility. However, no transaction was announced, so this provides limited immediate valuation support. Wall Street Journal report
Negative Sentiment: Third-quarter revenue rose only 2% year over year to $8.58 billion, below the $8.71 billion consensus estimate. Reports also indicated that merchant volume missed expectations, highlighting continued pressure on transaction growth and market share. Earnings report
Negative Sentiment: Investors remain concerned about checkout competition, pricing pressure and PayPal’s slower growth profile. Recent bearish analyst commentary and a $45 sell-rating target may limit enthusiasm even after the earnings beat. Analyst ratings report

Insider Buying and Selling at PayPal

In other news, insider Frank Keller sold 4,612 shares of the company’s stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $55.43, for a total value of $255,643.16. Following the completion of the transaction, the insider owned 41,567 shares of the company’s stock, valued at $2,304,058.81. This represents a 9.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 4,162 shares of PayPal stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $60.96, for a total transaction of $253,715.52. Following the sale, the insider owned 30,983 shares in the company, valued at approximately $1,888,723.68. This represents a 11.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 14,774 shares of company stock worth $848,095. 0.63% of the stock is currently owned by insiders.

About PayPal

(Get Free Report)

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and businesses to send, receive, and manage money online and through mobile devices. Its services support online checkout, peer-to-peer payments, money transfers, payment processing, invoicing, and other commerce-related transactions.

The company’s portfolio includes the PayPal and Venmo brands, Braintree’s payment processing technology, and Xoom’s international money transfer service. PayPal also offers merchant tools, digital wallets, payment solutions, and consumer financing products through its platform and related services.

PayPal traces its origins to 1998 and became an independent publicly traded company after separating from eBay in 2015.