PayPal raises EPS outlook as volume grows faster than revenue
PayPal grew payment volume 6% and raised 2026 non-GAAP EPS guidance, but lower GAAP profit and operating cash flow show the cost of the transformation.
PayPal reported third-quarter 2026 revenue of $8.584 billion, up 2% year over year, while total payment volume rose 6% to $487.1 billion. Non-GAAP EPS increased 8% to $1.45, about $0.14 above the approximately $1.31 analyst consensus; revenue was about $130 million below the roughly $8.71 billion consensus, according to published estimates.
Management raised full-year 2026 non-GAAP EPS guidance to approximately $5.60, from about $5.38 previously, and raised full-year transaction-margin-dollar guidance. PayPal ended September with $15.1 billion in cash, cash equivalents and investments against $13.5 billion of debt, repurchased about 28 million shares for $1.5 billion during the quarter, and declared a $0.14 dividend. Adjusted free cash flow was $2.047 billion, down 10% year over year, partly reflecting the company’s treatment of BNPL receivables.
TPV
$487.1B
↑ +6% year over year
Non-GAAP EPS
$1.45
↑ +8% year over year
Operating cash flow
$1.6B
↓ -19% year over year
FY26 non-GAAP EPS guide
~$5.60
↑ +$0.22 vs July guide
Sources
Quarterly revenue, PayPal
Margins by quarter
Twelve quarters of figures
| Quarter | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $7.3B | $7.4B | $8.0B | $7.7B | $7.9B | $7.8B | $8.4B | $7.8B | $8.3B | $8.4B | $8.7B | $8.4B |
| Revenue growth | 7.1% | 8.4% | 8.7% | 9.4% | 8.2% | 5.8% | 4.2% | 1.2% | 5.1% | 7.3% | 3.7% | 7.2% |
| Operating margin | 15.6% | 15.8% | 21.5% | 15.2% | 16.8% | 17.7% | 17.2% | 19.6% | 18.2% | 18.1% | 17.4% | 17.8% |
| Net income | $1.0B | $1.0B | $1.4B | $888M | $1.1B | $1.0B | $1.1B | $1.3B | $1.3B | $1.2B | $1.4B | $1.1B |
| Diluted EPS | $0.92 | $0.93 | $1.29 | $0.83 | $1.08 | $0.99 | $1.10 | $1.29 | $1.29 | $1.30 | $1.53 | $1.21 |
| Cash from operations | −$200M | $1.3B | $2.6B | $1.9B | $1.5B | $1.6B | $2.4B | $1.2B | $898M | $2.0B | $2.4B | $1.1B |
| Capital expenditure | $150M | $158M | $145M | $154M | $157M | $169M | $203M | $196M | $206M | $256M | $194M | $231M |
| Free cash flow | −$350M | $1.1B | $2.5B | $1.8B | $1.4B | $1.4B | $2.2B | $964M | $692M | $1.7B | $2.2B | $903M |
| Dividends and buybacks | $1.5B | $1.4B | $607M | $1.5B | $1.5B | $1.8B | $1.3B | $1.5B | $1.6B | $1.5B | $1.5B | $1.6B |
This story describes figures the company has published. It is for information only and is not investment advice or a recommendation to buy, sell or hold any security. Check the original filings before relying on any figure. Stoqly is not affiliated with the SEC or PayPal.
