# 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.

Source page: https://stoqly.net/news/paypal-q3-2026-eps-guidance-cash-flow

- **Published:** 2026-10-31T18:00:00+00:00
- **Section:** Quarterly results
- **Company:** PayPal (PYPL), https://stoqly.net/companies/pypl.md

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.

**The trade-off** The quarter combined stronger transaction economics with weaker GAAP profitability: GAAP operating income fell **8%** to $1.402 billion, GAAP EPS fell **4%** to $1.25, and operating cash flow fell **19%** to $1.592 billion.

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

- [PayPal Q3 2026 earnings release, SEC Exhibit 99.1, filed 2026-10-27](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000086/pypl3q-26earningsrelease.htm)
- [PayPal investor relations, Q3 2026 results](https://investor.pypl.com/financials/quarterly-results/default.aspx)
- [Zacks, PayPal Q3 2026 earnings estimate comparison](https://www.zacks.com/stock/news/3015584/paypal-pypl-q3-earnings-top-estimates)

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Written by Stoqly from SEC filings and market data. For information only — not investment advice or a recommendation to buy, sell or hold any security.