PayPal beats Q2 estimates as revenue, payment volume, Venmo, and Braintree momentum improve.
Stock Earnings Results
July 28, 2026
Table of Contents
July 28, 2026
PayPal Holdings, Inc. (NASDAQ: PYPL) reported second-quarter 2026 results above expectations, supported by higher revenue, stronger payment volume, Venmo and Braintree momentum, strong free cash flow, share repurchases, and raised full-year non-GAAP guidance.
PayPal is a global payments company that helps consumers and businesses move money, shop, sell, and process digital payments across approximately 200 markets.
The company reported non-GAAP EPS of $1.38, above estimates of $1.28, representing a 7.8% earnings surprise. Revenue came in at $8.68 billion, above estimates of $8.51 billion, with revenue growth of 4.8%.
Net revenue increased 5% year-over-year to $8.68 billion.
On a currency-neutral basis, net revenue increased 3%.
GAAP net income was $1.10 billion, down 12% from the prior-year quarter.
GAAP diluted EPS was $1.25, down 3%.
Non-GAAP net income was $1.22 billion, down 11%.
Non-GAAP EPS was $1.38, down 1%.
Total payment volume increased 10% year-over-year to $486.4 billion.
On a currency-neutral basis, total payment volume increased 9%.
Payment transactions increased 8% to 6.8 billion.
Payment transactions per active account increased 3% to 60.0 on a trailing 12-month basis.
Active accounts increased 0.3% year-over-year to 439 million.
Sequentially, active accounts declined by 0.2 million.
GAAP operating income declined 5% to $1.43 billion.
Non-GAAP operating income declined 8% to $1.51 billion.
GAAP operating margin contracted 171 basis points to 16.4%.
Non-GAAP operating margin contracted 248 basis points to 17.4%.
Transaction margin dollars increased 1% to $3.90 billion.
Transaction margin dollars excluding interest on customer balances increased 3% to $3.62 billion.
The results show that PayPal is growing volume and revenue, but operating margins remain pressured by business mix, investment spending, and cost structure changes.
Cash flow from operations was $2.0 billion.
Free cash flow was $1.8 billion.
Adjusted free cash flow was also $1.8 billion.
PayPal ended the quarter with $15.3 billion in cash, cash equivalents, and investments.
Total debt was $13.4 billion.
The company repurchased about 33 million shares for $1.5 billion during the quarter.
Over the last 12 months, PayPal repurchased about 111 million shares for $6.0 billion.
PayPal’s board declared a cash dividend of $0.14 per share.
The dividend is payable September 25, 2026, to stockholders of record as of September 4.
The dividend adds another capital return channel alongside PayPal’s ongoing share repurchase program.
PayPal raised its full-year 2026 non-GAAP transaction margin dollars and non-GAAP EPS guidance.
The company now expects full-year non-GAAP EPS of about $5.38.
PayPal also reaffirmed its full-year GAAP EPS guidance for a mid-single-digit decline.
For the third quarter, PayPal expects both GAAP EPS and non-GAAP EPS to decline by a low-single-digit percentage from the prior-year period.
CEO Enrique Lores said PayPal is advancing its transformation plan across branded checkout, Venmo, Braintree, and financial services.
PayPal delivered a better-than-expected quarter while continuing its transformation.
Revenue beat estimates, non-GAAP EPS topped expectations, total payment volume grew 10%, free cash flow remained strong, and the company returned capital through buybacks while adding a dividend. Venmo and Braintree momentum also helped support the turnaround story.
The key issue is that GAAP and non-GAAP operating income both declined, and margins contracted year-over-year.
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