Results
PayPal Reports Second Quarter 2026 Results
Management commentary
Advances transformation with clear strategy and roadmap
"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.
1Based on the strength of our execution and confidence in the trajectory of the business, we're raising our full-year non-GAAP guidance.Guidance raised
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
Results
2Q'26 Financial Results
Net revenues increased 5% to $8.7 billion; 3% currency-neutral (“FXN”).
Transaction margin dollars 1 (“TM$”) increased 1% to $3.9 billion; TM$ excluding interest on customer balances 1,2 increased 3% to $3.6 billion.
7GAAP operating income decreased 5% to $1.4 billion; non-GAAP operating income decreased 8% to $1.5 billion.
8GAAP operating margin contracted 171 basis points to 16.4%; non-GAAP operating margin contracted 248 basis points to 17.4%.
4GAAP EPS decreased 3% to $1.25 3 ; non-GAAP EPS decreased 1% to $1.38.
2Q'26 Operating Results
Total payment volume (“TPV”) increased 10% to $486.4 billion; 9% FXN.
Payment transactions increased 8% to 6.8 billion.
Excluding payment service provider transactions 4 (“PSP”), payment transactions increased 7%.
Payment transactions per active account (“TPA”) on a trailing 12-month basis increased 3% to 60.0.
3TPA ex-PSP 4 increased 7%.
Active accounts increased 0.3% to 439 million.
On a sequential basis, active accounts decreased by 0.04%, or by 0.2 million.
Cash Flow
Cash flow from operations of $2.0 billion and free cash flow of $1.8 billion.
Adjusted free cash flow of $1.8 billion, which excludes the net timing impact between originating buy now, pay later (“BNPL”) receivables as held for sale and the subsequent sale of those receivables.
Balance Sheet and Liquidity
Cash, cash equivalents, and investments totaled $15.3 billion as of June 30, 2026.
Debt totaled $13.4 billion as of June 30, 2026.
Capital return
Returned $1.5 billion to stockholders by repurchasing approximately 33 million shares of common stock in 2Q'26.
On a trailing 12-month basis, returned $6.0 billion to stockholders by repurchasing approximately 111 million shares of common stock.
Dividend Program
PayPal’s Board of Directors declared a cash dividend of $0.14 per share on the Company’s common stock, payable on September 25, 2026, to stockholders of record as of the close of business on September 4, 2026.
2Q'26 Financial Results
Outlook
Financial Guidance
22026 Guidance: Following another strong quarter, PayPal is raising full year non-GAAP TM$ and EPS guidance and reaffirming GAAP EPS guidance.Guidance raised
Please see PayPal’s 2Q'26 earnings presentation for more detail.
July 2026 GuidanceMay 2026 GuidancePrior year period
3Q'26
Results
5GAAP EPSLow-single digit declineN/A$1.30
6Non-GAAP EPS 1Low-single digit declineN/A$1.34
Outlook
GAAP EPS 2Mid-single digit declineMid-single digit decline$5.41
Non-GAAP EPS 3~$5.38Low-single digit decline to slightly positive$5.31
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