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FinancePayPal beats Q2 estimates, raises FY2026 EPS guidance; shares rise nearly 4%
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PayPal Holdings Inc reported Q2 2026 earnings that exceeded Wall Street expectations, with adjusted EPS of $1.38 on revenue of $8.68 billion, beating estimates of $1.28 and $8.47 billion respectively. Revenue grew 5% year-over-year, while total payment volume reached $486.4 billion, up 10% and ahead of consensus. The company raised its full-year 2026 non-GAAP EPS guidance to approximately $5.38, up from prior expectations. However, profitability pressures persisted, with GAAP operating income falling 5% and non-GAAP operating income declining 8%. CEO Enrique Lores cited stabilization in branded checkout and momentum in Venmo and Braintree as key drivers. Shares rose nearly 4% following the announcement.
Source report
Proactive Tue, July 28, 2026 at 7:50 AM PDT 2 min read
PYPL +0.05%
PayPal Holdings Inc (NASDAQ: PYPL, XETRA: 2PP) shares rose nearly 4% after the company reported second-quarter 2026 results that exceeded Wall Street expectations and raised its full-year non-GAAP guidance.
Key Financial Results
The payments company reported adjusted earnings of $1.38 per share on revenue of $8.68 billion for the quarter ended June 30, compared with analyst estimates of $1.28 per share and $8.47 billion in revenue.
- Revenue increased 5% year over year (or 3% on a currency-neutral basis)
- Total payment volume (TPV) reached $486.4 billion, up 10% year over year and ahead of consensus expectations of $473.93 billion
- Payment transactions increased 8% to 6.8 billion
- Payment transactions per active account rose 3% to 60 on a trailing 12-month basis
- Transaction margin dollars increased 1% to $3.9 billion
- Transaction margin dollars excluding interest on customer balances rose 3% to $3.6 billion
Profitability Metrics
Profitability remained under pressure:
- GAAP operating income fell 5% to $1.4 billion
- Non-GAAP operating income declined 8% to $1.5 billion
- GAAP operating margin contracted 171 basis points to 16.4%
- Non-GAAP operating margin declined 248 basis points to 17.4%
- GAAP earnings per share fell 3% to $1.25
- Non-GAAP EPS declined 1% to $1.38
CEO Commentary
PayPal CEO Enrique Lores highlighted progress on the company's transformation strategy, pointing to stabilization in branded checkout and continued momentum in Venmo and Braintree.
"We moved with urgency to sharpen our transformation plan and advance our growth strategies across our three businesses. Branded checkout has further stabilized and we're building on the strong momentum in Venmo and Braintree as well as diversifying our business model through financial services."
Guidance
The company raised its full-year 2026 non-GAAP transaction margin dollars and earnings guidance, while reaffirming its GAAP EPS outlook.
- Full-year non-GAAP EPS: Approximately $5.38 (compared with prior guidance for a low-single-digit decline to slightly positive growth and prior-year EPS of $5.31)
- Third quarter: GAAP and non-GAAP EPS expected to decline by a low-single-digit percentage compared with the prior-year period
Source
Yahoo FinanceWestern
Part of this Story
PayPal shares rise as earnings beat estimates and company lifts 2026 outlook