PayPal Holdings 8-K

EarningsGuidance raised

Branded checkout stabilizes as Venmo and Braintree gain momentum; management raises FY2026 non-GAAP EPS and transaction margin dollars guidance.

Filed 2026-07-28 07:02 ET

Summary

Q2 2026 results with FY2026 guidance changes. PayPal reported 5% revenue growth, while GAAP and non-GAAP operating income declined. Management cited progress in its transformation, stabilizing branded checkout and momentum in Venmo and Braintree, and raised full-year non-GAAP transaction margin dollars and EPS guidance while reaffirming GAAP EPS guidance.

Key Figures

Metric Q2 2026 Q2 2025 Y/Y
Net revenues $8.68B $8.29B 5%
GAAP operating income $1.43B $1.50B (5%)
Non-GAAP operating income $1.51B $1.64B (8%)
GAAP net income $1.10B $1.26B (12%)
Non-GAAP net income $1.22B $1.37B (11%)
GAAP diluted EPS $1.25 $1.29 (3%)
Non-GAAP diluted EPS $1.38 $1.40 (1%)
Net cash provided by operating activities $1.98B $898M 121%
Free cash flow $1.78B $692M 157%
Adjusted free cash flow $1.83B $656M 179%
  • Total payment volume was $486.4B, up 10% (9% FX-neutral); payment transactions rose 8% to 6.75B, while active accounts grew 0.3% to 439M. Transaction margin dollars increased 1% to $3.90B, or 3% to $3.62B excluding interest on customer balances.
  • GAAP operating margin contracted 171 bp to 16.4%; non-GAAP operating margin contracted 248 bp to 17.4%.
  • Cash, cash equivalents and investments totaled $15.3B; debt was $13.4B. PayPal repurchased about 33M shares for $1.5B; shares outstanding were 862M at quarter-end vs 920M at 12/31/2025. The board declared a $0.14-per-share dividend, payable 9/25/2026 to holders of record 9/4/2026.

Guidance

Metric Period Guidance Prior Direction
GAAP diluted EPS Q3 2026 Low-single-digit decline Y/Y vs $1.30 in Q3 2025 — —
Non-GAAP diluted EPS Q3 2026 Low-single-digit decline Y/Y vs $1.34 in Q3 2025 — —
GAAP diluted EPS FY2026 Mid-single-digit decline Y/Y Mid-single-digit decline Y/Y Reaffirmed
Non-GAAP diluted EPS FY2026 ≈$5.38 Low-single-digit decline to slightly positive Raised
Non-GAAP transaction margin dollars FY2026 Figures not restated — Raised

Investor Takeaways

  • Q3 EPS results will show whether performance tracks the stated low-single-digit-decline outlook.
  • FY2026 results will test the raised non-GAAP EPS and transaction margin dollars outlook, alongside reaffirmed GAAP EPS guidance.

The summary is written by an AI model reading the filing.

Model 005 · prompt 01d34d48e3

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