PayPal Holdings 8-K
PositiveEarningsGuidance raised
Payment activity and transaction margin dollars grow; FY2026 non-GAAP EPS outlook raised to ≈$5.60.
Filed 2026-10-27 07:02 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with updated FY2026 guidance. PayPal reported 2% revenue growth as payment volume and transaction activity increased; transaction margin dollars also grew, while GAAP operating income and EPS declined. The company raised FY2026 non-GAAP transaction margin dollars and EPS guidance and reaffirmed GAAP EPS guidance. PayPal also declared a $0.14-per-share dividend, payable 12/24/2026 to stockholders of record on 12/04/2026.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $8.58B, +2% Y/Y | $25.6B, +5% Y/Y |
| GAAP operating income | $1.40B, -8% Y/Y | $4.32B, -5% Y/Y |
| Non-GAAP operating income | $1.61B, +3% Y/Y | — |
| Net income | $1.07B, -14% Y/Y | $3.29B, -13% Y/Y |
| Non-GAAP net income | $1.25B, -3% Y/Y | — |
| GAAP diluted EPS | $1.25, -4% Y/Y | $3.71, -4% Y/Y |
| Non-GAAP diluted EPS | $1.45, +8% Y/Y | — |
| Operating cash flow | $1.59B, -19% Y/Y | $4.71B, +17% Y/Y |
| Free cash flow | $1.43B, -17% Y/Y | — |
| Total payment volume | $487B, +6% Y/Y | — |
- Total payment volume growth was 7% FX-neutral; payment transactions rose 7% to 6.8B, trailing-12-month payment transactions per active account increased 6% to 60.8, and active accounts grew 0.6% to 440M. Transaction margin dollars increased 2% to $3.95B, or 3% to $3.66B excluding interest on customer balances.
- Transaction revenue rose 3% to $7.71B, while revenue from other value-added services fell 2% to $873M. U.S. revenue grew 5%; international revenue declined 2% (4% FX-neutral). GAAP operating margin contracted 173 bp to 16.3%, while non-GAAP operating margin expanded 16 bp to 18.8%; restructuring and other expense increased to $255M from $69M.
- Cash, cash equivalents and investments totaled $15.1B and debt was $13.5B at quarter-end. PayPal repurchased approximately 28M shares for $1.5B during the quarter; trailing-12-month repurchases were approximately 117M shares for $6.0B. Shares outstanding were 837M at 9/30/2026 vs 920M at 12/31/2025.
Against earlier guidance (derived from earlier filings)
| Metric | Period | Earlier guidance | Actual | Result |
|---|---|---|---|---|
| GAAP EPS | Q3 2026 | Low-single-digit decline Y/Y | $1.25, -4% Y/Y | missed |
| Non-GAAP EPS | Q3 2026 | Low-single-digit decline Y/Y | $1.45, +8% Y/Y | beat |
Growth phrases are read as percent ranges: low single-digit 1–3%.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| GAAP diluted EPS | Q4 2026 | ≈$1.37 | N/A | — |
| Non-GAAP diluted EPS | Q4 2026 | ≈$1.43 | N/A | — |
| GAAP diluted EPS | FY2026 | ≈$5.07 | Mid-single-digit decline, July 2026 | Reaffirmed |
| Non-GAAP diluted EPS | FY2026 | ≈$5.60 | ≈$5.38, July 2026 | Raised |
FY2026 non-GAAP transaction margin dollars guidance was raised; figures were not restated.
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| Non-GAAP diluted EPS | FY2026 | ≈$5.38 | ≈$5.60 | raised |
Investor Takeaways
- Watch Q4 2026 GAAP and non-GAAP EPS against the stated outlook; results within or above the outlook would support the updated full-year expectations.
- Track payment volume, payment transactions and transactions per active account against Q3 growth of 6%, 7% and 6%, respectively, to see whether transaction activity continues to support revenue and transaction margin dollars.
The summary is written by an AI model reading the filing.
Model 005 · prompt v111 · 2026-10-27 14:41:49Z