PayPal (PYPL) · Payments
PayPal Q2 2026 earnings: summary, key numbers & outlook
Results filed 28 Jul 2026 · Quarter ended 30 Jun 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
PayPal reported second quarter 2026 net revenues up 5% to $8.7 billion, GAAP EPS down 3% to $1.25 and non-GAAP EPS down 1% to $1.38, and raised its full-year non-GAAP guidance.
PayPal's net revenues rose 5% to $8.7 billion (3% currency-neutral) in the second quarter. Total payment volume grew 10% to $486.4 billion. Profit slipped, though: GAAP operating income fell 5% to $1.4 billion and non-GAAP EPS fell 1% to $1.38. Operating cash flow more than doubled to $2.0 billion, and PayPal returned $1.5 billion to stockholders through share repurchases.
Management raised full-year non-GAAP guidance to about $5.38 per share, from a prior range of a low-single digit decline to slightly positive. For the third quarter it expects both GAAP and non-GAAP EPS to fall by a low-single digit percentage. The main tension is that volume is growing faster than margin dollars. Transaction margin dollars rose just 1% and non-GAAP operating margin fell 248 basis points to 17.4%. Active accounts were nearly flat at 439 million.
Key numbers
- Net revenues · GAAP
- $8.7 billion
- Net income · GAAP
- $1.1B
- Diluted EPS · GAAP
- $1.25
- Diluted EPS · non-GAAP
- $1.38
- Operating income · GAAP
- $1.4 billion
- Operating margin · GAAP
- 16.4%
- Operating margin · non-GAAP
- 17.4%
- Cash flow from operations · GAAP
- $2.0 billion
up 5% from a year ago; 3% currency-neutral
down 12% from a year ago
down 3% from a year ago
down 1% from a year ago
down 5% from a year ago
down 171 basis points from a year ago
down 248 basis points from a year ago
up 121% from a year ago
| Segment or metric | Value | Change |
|---|---|---|
| Total payment volume | $486.4 billion | up 10% from a year ago; 9% FXN |
| Payment transactions | 6.8 billion | up 8% from a year ago |
| Active accounts | 439 million | up 0.3% from a year ago |
| Transaction margin dollars | $3.9 billion | up 1% from a year ago |
| TM$ excluding interest on customer balances | $3.6 billion | up 3% from a year ago |
| Payment transactions per active account (trailing 12 months) | 60.0 | up 3% from a year ago |
| U.S. net revenues | $5.0B | up 7% from a year ago |
| International net revenues | $3.6B | up 2% from a year ago |
Where each number comes from
- Net revenues: “Net revenues increased 5% to $8.7 billion; 3% currency-neutral (“FXN”).”
- Net income: “Net income (loss) | $1,104 | $1,261 | (12%) Earnings per diluted share | $1.25 | $1.29 | (3%)”
- Diluted EPS: “Net income (loss) | $1,104 | $1,261 | (12%) Earnings per diluted share | $1.25 | $1.29 | (3%)”
- Diluted EPS: “GAAP EPS decreased 3% to $1.253; non-GAAP EPS decreased 1% to $1.38.”
- Operating income: “GAAP operating income decreased 5% to $1.4 billion; non-GAAP operating income decreased 8% to $1.5 billion.”
- Operating margin: “GAAP operating margin contracted 171 basis points to 16.4%; non-GAAP operating margin contracted 248 basis points to 17.4%.”
- Operating margin: “GAAP operating margin contracted 171 basis points to 16.4%; non-GAAP operating margin contracted 248 basis points to 17.4%.”
- Cash flow from operations: “Cash flow from operations of $2.0 billion and free cash flow of $1.8 billion.”
- Total payment volume: “Total payment volume (“TPV”) increased 10% to $486.4 billion; 9% FXN.”
- Payment transactions: “Payment transactions increased 8% to 6.8 billion. Excluding payment service provider transactions4 (“PSP”), payment transactions increased 7%.”
- Active accounts: “Active accounts increased 0.3% to 439 million. On a sequential basis, active accounts decreased by 0.04%, or by 0.2 million.”
- Transaction margin dollars: “Transaction margin dollars1 (“TM$”) increased 1% to $3.9 billion; TM$ excluding interest on customer balances1,2 increased 3% to $3.6 billion.”
- TM$ excluding interest on customer balances: “Transaction margin dollars1 (“TM$”) increased 1% to $3.9 billion; TM$ excluding interest on customer balances1,2 increased 3% to $3.6 billion.”
- Payment transactions per active account (trailing 12 months): “Payment transactions per active account (“TPA”) on a trailing 12-month basis increased 3% to 60.0. TPA ex-PSP4 increased 7%.”
- U.S. net revenues: “U.S. net revenues | $5,048 | $4,882 | $4,943 | $4,753 | $4,709 Current quarter vs prior quarter | 3% | (1)% | 4% | 1% | 6%”
- International net revenues: “International net revenues | $3,634 | $3,471 | $3,733 | $3,664 | $3,579 Current quarter vs prior quarter | 5% | (7)% | 2% | 2% | 8%”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $8.7B | +4.8% | +3.9% |
| Operating income | $1.4B | −5.1% | −4.1% |
| Net income | $1.1B | −12.5% | −0.8% |
| Diluted EPS | $1.25 | −3.1% | +3.3% |
| Free cash flow | $1.8B | +156.5% | +96.6% |
| Operating margin | 16.4% | −1.7 pts | −1.4 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Non-GAAP EPS | FY'26 | ~$5.38 |
Key takeaways
Volume growth outpaced revenue and margin dollars
Total payment volume increased 10% to $486.4 billion and net revenues increased 5% to $8.7 billion. Transaction margin dollars increased only 1% to $3.9 billion.
Profitability declined despite higher revenue
Non-GAAP operating income decreased 8% to $1.5 billion and non-GAAP operating margin contracted 248 basis points to 17.4%. GAAP net income fell 12% to $1,104 million.
Cash generation rose sharply
Net cash provided by operating activities was $1,983 million versus $898 million a year ago. Free cash flow was $1,775 million versus $692 million.
Full-year non-GAAP EPS guidance was raised
Non-GAAP EPS guidance is now ~$5.38, versus a May range of low-single digit decline to slightly positive. GAAP EPS guidance of a mid-single digit decline was reaffirmed.
User base is flat while engagement improves
Active accounts increased 0.3% to 439 million, and fell 0.04% sequentially. Payment transactions per active account increased 3% to 60.0.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $8.4B * |
| Q1 2025 | $7.8B |
| Q2 2025 | $8.3B |
| Q3 2025 | $8.4B |
| Q4 2025 | $8.7B * |
| Q1 2026 | $8.4B |
| Q2 2026 | $8.7B |
| Q3 2026 | $8.6B |
Data
| Q1 2025 | $1.29 |
| Q2 2025 | $1.29 |
| Q3 2025 | $1.30 |
| Q1 2026 | $1.21 |
| Q2 2026 | $1.25 |
| Q3 2026 | $1.25 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 17.2% |
| Q1 2025 | 19.6% |
| Q2 2025 | 18.1% |
| Q3 2025 | 18.1% |
| Q4 2025 | 17.4% |
| Q1 2026 | 17.8% |
| Q2 2026 | 16.4% |
| Q3 2026 | 16.3% |
Data
| Q4 2024 | $2.2B |
| Q1 2025 | $964.0M |
| Q2 2025 | $692.0M |
| Q3 2025 | $1.7B |
| Q4 2025 | $2.2B |
| Q1 2026 | $903.0M |
| Q2 2026 | $1.8B |
| Q3 2026 | $1.4B |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were PayPal's headline results for Q2 2026?
Net revenues increased 5% to $8.7 billion and TPV increased 10% to $486.4 billion. GAAP EPS decreased 3% to $1.25 and non-GAAP EPS decreased 1% to $1.38.
Did PayPal change its full-year guidance?
Yes. It raised full-year non-GAAP EPS guidance to about $5.38 from a May range of low-single digit decline to slightly positive, and reaffirmed GAAP EPS guidance of a mid-single digit decline. It also raised non-GAAP TM$ guidance, with detail in its earnings presentation.
What is PayPal's third-quarter outlook?
PayPal expects both GAAP and non-GAAP EPS for the third quarter of 2026 to show a low-single digit decline. The prior-year figures were $1.30 and $1.34.
How did cash flow and capital returns look?
Cash flow from operations was $2.0 billion and free cash flow was $1.8 billion. PayPal repurchased about 33 million shares for $1.5 billion and declared a $0.14 per share dividend.
Why did profit fall while revenue grew?
Transaction margin dollars grew just 1% against 5% revenue growth, and non-GAAP operating margin contracted 248 basis points to 17.4%. GAAP EPS also included a ~$0.07 negative impact from PayPal's strategic investment portfolio and crypto assets.
Documents
SEC filing