PayPal (PYPL) Q3 2026 Earnings
How Did PYPL Stock React to Q3 2026 Earnings?
Did PYPL Beat Earnings? Q3 2026 Results
Yes. PayPal reported Q3 2026 earnings of $1.45 a share on Oct 27, 2026, beating the $1.31 consensus estimate by 10.8%. Revenue was $8.6B against a $8.7B estimate.
PayPal Holdings delivered a mixed but largely encouraging third quarter for fiscal 2026, posting adjusted non-GAAP EPS of $1.45, well ahead of the $1.31 consensus estimate by 10.77%, even as revenue of $8.58 billion came in 1.40% light of the $8.71 billion Wall Street had expected. Net revenues still grew 2% year-over-year, supported by a 6% rise in total payment volume to $487.14 billion and a 7% increase in payment transactions to 6.8 billion, underscoring durable volume momentum beneath the softer top line. The clearest pressure point was on the GAAP side, where $178 million in restructuring charges drove GAAP operating income down 8%, though non-GAAP operating income rose 3% to $1.61 billion with margin expanding 16 basis points to 18.8%. Aggressive share repurchases, with roughly 28 million shares bought back and the diluted count shrinking to 858 million from 960 million a year ago, meaningfully supported per-share results. Encouraged by the trajectory, PayPal raised its full-year non-GAAP EPS guidance to approximately $5.60, up from a prior target of approximately $5.38, while guiding Q4 non-GAAP EPS to approximately $1.43.
- Total payment volume increased 6% to $487.1 billion (7% FXN)
- Payment transactions grew 7% to 6.8 billion
- Transactions per active account rose 6% to 60.8 on trailing 12-month basis
- Transaction margin dollars excluding interest on customer balances grew 3%
- Non-GAAP operating margin expanded 16 basis points to 18.8%
- U.S. net revenues grew 5% YoY, representing 58% of total revenue
- Significant share count reduction from 960M to 858M diluted shares YoY
“I'm pleased with our third-quarter performance and the momentum we are seeing across the business, and we are raising our full-year non-GAAP guidance for transaction margin dollars and EPS. We are beginning to see our strategy translate into our financial results, with strong contributions from our key growth areas and increasing diversification. We are making good progress in our multi-year transformation, and while there is more work to do, we are increasingly confident in our path to durable, profitable growth and remain focused on execution.”
PayPal CEO, on the earnings call
What Is PayPal's Outlook?
PayPal raised its full-year 2026 non-GAAP guidance for transaction margin dollars and EPS following Q3 results. For Q4 2026, the company guides to approximately $1.37 GAAP EPS and approximately $1.43 non-GAAP EPS. For full-year 2026, the company now expects approximately $5.07 GAAP EPS and approximately $5.60 non-GAAP EPS, up from prior guidance of approximately $5.38 non-GAAP EPS. The company reaffirmed GAAP EPS guidance (previously described as mid-single digit decline from FY'25 GAAP EPS of $5.41).
PYPL YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $8.6B | $8.4B | +2.0% |
| Operating Income | $1.4B | $1.5B | −7.8% |
| Net Income | $1.1B | $1.2B | −14.0% |
PYPL Revenue by Segment
PYPL Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.