PYPL stock: PayPal beats Q3 earnings and raises its 2026 profit outlook

What happened. On 27 October 2026 PayPal Holdings reported results for the third quarter, which ended on 30 September. Barron's writes that the company beat profit estimates and that the CEO says it is making progress with its turnaround. The company's own headline is "Strategy beginning to translate into results".

Sales and volume. Net revenue rose 2% to $8.6 billion, or 1% in constant currency. AP reports that this missed the $8.7 billion analysts expected. Total payment volume, the value of all payments on the platform, rose 6% to $487.1 billion. Payment transactions rose 7% to 6.8 billion. Active accounts grew 0.6% to 440 million. U.S. revenue rose 5%, while international revenue fell 2%.

Profit. Adjusted EPS rose 8% to $1.45. Adjusted figures leave out items such as restructuring costs. GAAP EPS fell 4% to $1.25, and net income was $1.07 billion. GAAP operating income fell 8% to $1.4 billion, while adjusted operating income rose 3% to $1.6 billion. One detail: adjusted net income fell 3% to $1.245 billion, yet EPS rose, helped by a diluted share count that dropped to 858 million from 960 million.

Outlook. PayPal now expects 2026 adjusted EPS of about $5.60, up from about $5.38 in July. A year earlier it was $5.31. It reaffirmed GAAP EPS guidance, now about $5.07. For the fourth quarter it expects adjusted EPS of about $1.43.

Cash and buybacks. In the quarter PayPal spent $1.5 billion to buy back about 28 million shares. Free cash flow was $1.4 billion, down 17%. The board declared a dividend of $0.14 per share, payable on 24 December 2026.

What is not known. We did not confirm how the stock closed on 27 October, and we did not review the earnings call. Barron's says the shares were down 5.8% this year at the time of writing.

What next. Watch the fourth-quarter results against the new outlook. For the wider US market and the earnings calendar, see our stocks page: https://freekonomist.com/stocks/. This is not advice to buy or sell anything.

Fatos confirmados

• On 27 October 2026 PayPal Holdings reported results for the third quarter ended 30 September 2026.^[1]
• Net revenues rose 2% to $8.6 billion, or 1% in constant currency.^[1]
• Revenue of $8.58 billion did not meet Street forecasts: nine analysts surveyed by Zacks expected $8.7 billion.^[2]
• Non-GAAP EPS rose 8% to $1.45.^[1]
• The average estimate of 11 analysts surveyed by Zacks was $1.31 per share, and the result surpassed it.^[2]
• GAAP EPS fell 4% to $1.25, and GAAP net income was $1.07 billion.^[1][2]
• GAAP operating income fell 8% to $1.4 billion; non-GAAP operating income rose 3% to $1.6 billion.^[1]
• Non-GAAP net income fell 3% to $1,245 million, while diluted shares fell to 858 million from 960 million.^[1]
• Total payment volume rose 6% to $487.1 billion (7% in constant currency); payment transactions rose 7% to 6.8 billion.^[1]
• Active accounts rose 0.6% to 440 million.^[1]
• U.S. net revenues were $5,002 million, up 5%; international net revenues were $3,582 million, down 2%.^[1]
• PayPal raised full-year 2026 non-GAAP EPS guidance to about $5.60 from about $5.38 in July.^[1][2]
• PayPal reaffirmed GAAP EPS guidance for 2026, now about $5.07.^[1]
• Fourth-quarter non-GAAP EPS is expected at about $1.43.^[1][2]
• PayPal bought back about 28 million shares for $1.5 billion in the quarter; free cash flow was $1.4 billion, down 17%.^[1]
• The board declared a dividend of $0.14 per share, payable on 24 December 2026 to holders of record on 4 December 2026.^[1]
• Per Barron's, PayPal beat third-quarter profit estimates and CEO Enrique Lores says the company is making progress with its turnaround.^[3]
• Per Barron's, PayPal stock had fallen 5.8% this year.^[3]

Implicações

• ConfirmadoPayPal raised its 2026 adjusted EPS outlook while keeping its GAAP outlook.
• ConfirmadoThe beat came from profit, not sales: revenue missed the analyst forecast.
• Nossa leituraPart of the EPS growth comes from a smaller share count, not from higher net income.
• Nossa leituraThe fourth quarter will show whether the new outlook holds.

Ainda não se sabe

• How PYPL shares closed on 27 October and how they reacted to the report.
• What management said on the earnings call: we did not review it.
• Whether PayPal delivers the fourth-quarter outlook of about $1.43 adjusted EPS.

Quem é afetado

United States, Worldwide. Anyone following PYPL stock, PayPal and the digital payments sector

Fontes

1. PayPal Holdings, Inc.: PayPal Reports Third Quarter 2026 Results 27 de outubro de 2026 · oficial
2. Associated Press (via 10TV): Paypal: Q3 Earnings Snapshot 27 de outubro de 2026 · mídia
3. Barron's: PayPal Beats Earnings Estimates. Does It Now Have a Shorter Path to Recovery? 27 de outubro de 2026 · mídia