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PayPal

PayPal (PYPL) Q2 2026 Earnings

Reported Jul 28, 2026 at 7:02 AM ET · SEC Source

Q2 26 EPS

$1.38

BEAT +8.02%

Est. $1.28

Q2 26 Revenue

$8.68B

BEAT +2.48%

Est. $8.47B

vs S&P Since Q2 26

+1.0%

BEATING MARKET

PYPL +5.1% vs S&P +4.1%

Market Reaction

Did PYPL Beat Earnings? Q2 2026 Results

PayPal Holdings delivered a solid second-quarter beat on both the top and bottom lines, posting non-GAAP EPS of $1.38 against a consensus estimate of $1.28, an 8.02% positive surprise, while revenue of $8.68 billion came in 2.48% ahead of expectation… Read more PayPal Holdings delivered a solid second-quarter beat on both the top and bottom lines, posting non-GAAP EPS of $1.38 against a consensus estimate of $1.28, an 8.02% positive surprise, while revenue of $8.68 billion came in 2.48% ahead of expectations and grew 4.8% year-over-year. The headline numbers, however, masked a meaningful divergence between volume growth and profitability, as non-GAAP operating margin contracted 248 basis points to 17.4%, with elevated investment in technology and development, up to $849 million from $767 million a year ago, reflecting the company's ongoing transformation initiatives across branded checkout, Venmo, and Braintree. Total payment volume climbed 10% to $486.45 billion and transactions rose 8% to 6.8 billion, while active accounts remained essentially flat at 439 million, though engagement improved with transactions per active account rising 3% to 60.0. Free cash flow surged to $1.77 billion, supporting $1.50 billion in share buybacks during the quarter. Looking ahead, PayPal raised its full-year non-GAAP EPS guidance to approximately $5.38, though it cautioned that Q3 non-GAAP EPS is expected to decline in the low-single digit range versus the prior-year period.

Key Takeaways

  • • Total payment volume increased 10% to $486.4 billion (9% FXN)
  • • Payment transactions increased 8% to 6.8 billion
  • • Transactions per active account increased 3% to 60.0 on trailing 12-month basis
  • • Branded checkout further stabilized
  • • Strong momentum in Venmo and Braintree
  • • U.S. net revenues grew 7% year-over-year
  • • Transaction margin dollars excluding interest on customer balances increased 3%

PYPL Forward Guidance & Outlook

PayPal raised its full-year 2026 non-GAAP EPS guidance to approximately $5.38 (previously low-single digit decline to slightly positive versus FY2025 $5.31) and reaffirmed GAAP EPS guidance of mid-single digit decline versus FY2025 $5.41. For Q3 2026, the company expects low-single digit declines in both GAAP EPS (vs. $1.30 prior year) and non-GAAP EPS (vs. $1.34 prior year). The company also raised full-year non-GAAP transaction margin dollar guidance. Estimated non-GAAP adjustments are approximately $35 million for Q3 2026 and approximately $350 million for full-year 2026, excluding potential second-half transformation-related charges.

24/7 Wall St

PYPL YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

PYPL Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26
24/7 Wall St

PYPL Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26

“I'm encouraged by the progress we made this quarter. 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. Based on the strength of our execution and confidence in the trajectory of the business, we're raising our full-year non-GAAP guidance. Our transformation is well underway, and we're executing with discipline on our priorities to deliver durable, profitable growth over the long term.”

— Enrique Lores, Q2 2026 Earnings Press Release

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