PayPal Holdings Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did PYPL Beat Earnings? Q1 2026 Results
PayPal opened its first quarter of 2026 under new leadership with results that cleared Wall Street's bar on both top and bottom lines, even as margin pressure and a cautious forward outlook complicated the picture. Non-GAAP EPS of $1.34 beat the $1.27 consensus by 5.59%, while revenue of $8.35 billion topped estimates by 3.71% and grew 7.2% year over year, driven by total payment volume reaching $463.95 billion, up 11%. The cleaner story, however, came with caveats: GAAP operating margin contracted 182 basis points to 17.8% as transaction expenses, customer support costs, and technology spending all rose faster than revenue. Aggressive share buybacks, with roughly 34 million shares repurchased for $1.50 billion in the quarter alone, provided meaningful lift to per-share figures, helping non-GAAP EPS grow 1% even as operating income declined. Incoming CEO Enrique Lores has flagged plans to simplify the organization and sharpen strategy, though guidance implies near-term turbulence, with Q2 non-GAAP EPS expected to decline approximately 9% versus the prior year period, and full-year non-GAAP EPS seen as flat to slightly lower versus $5.31 in fiscal 2025.
- Total payment volume increased 11% YoY to $464 billion (8% FXN)
- Payment transactions increased 7% YoY to 6.5 billion
- Transaction revenues grew 7% YoY driven by TPV growth
- U.S. net revenues grew 9% YoY, outpacing international growth of 4%
- Share buybacks reduced diluted share count from 999 million to 920 million, supporting non-GAAP EPS growth
“I'm energized by the opportunity to improve execution and accelerate PayPal's growth. The company has valuable assets in our brands, technology, and team – and there is significant potential ahead of us. We are taking deliberate steps to sharpen our strategy, simplify our organization, and improve both our growth trajectory and cost structure by focusing our investments where we believe they will have the greatest impact. I am confident in our ability to put the company on a more durable path to long-term growth and shareholder value creation, and we are executing with urgency.”
PayPal CEO, on the earnings call
Forward Guidance & Outlook
PayPal reiterated its full-year 2026 guidance, citing a solid start to the year while reflecting a complex and dynamic operating environment. For Q2 2026, the company expects GAAP EPS to show a mid-single digit decline versus $1.29 in Q2 2025, and non-GAAP EPS to decline by a high-single digit or approximately -9% versus $1.40 in Q2 2025. For full-year 2026, PayPal expects GAAP EPS to show a mid-single digit decline versus $5.41 in FY 2025, and non-GAAP EPS to show a low-single digit decline to slightly positive versus $5.31 in FY 2025.
PYPL YoY Financials
PYPL Revenue by Segment
PYPL Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.