PayPal shares rise as earnings beat estimates and company lifts 2026 outlook

PayPal shares rose almost 4% after the company reported second quarter 2026 results that exceeded Wall Street expectations and raised its full-year non-GAAP guidance. The payments company reported adjusted earnings of $1.38 per share on revenue of $8.68 billion for the quarter ended June 30, compared with analyst estimates of $1.28 per share and $8.47 billion in revenue. Revenue increased 5% year over year, or 3% on a currency-neutral basis. Total payment volume (TPV) reached $486.4 billion, up 10% year over year and ahead of consensus expectations of $473.93 billion. Payment transactions increased 8% to 6.8 billion, while payment transactions per active account rose 3% to 60 on a trailing 12-month basis. Transaction margin dollars increased 1% to $3.9 billion, while transaction margin dollars excluding interest on customer balances rose 3% to $3.6 billion. Profitability remained under pressure, with GAAP operating income falling 5% to $1.4 billion and non-GAAP operating income declining 8% to $1.5 billion. GAAP operating margin contracted 171 basis points to 16.4%, while non-GAAP operating margin declined 248 basis points to 17.4%. GAAP earnings per share fell 3% to $1.25, while non-GAAP EPS declined 1% to $1.38.

PayPal CEO Enrique Lores highlighted progress on the company’s transformation strategy, pointing to stabilization in branded checkout and continued momentum in Venmo and Braintree. “We moved with urgency to sharpen our transformation plan and advance our growth strategies across our three businesses,” Lores said “Branded checkout has further stabilized and we’re building on the strong momentum in Venmo and Brai...