# PayPal (PYPL) Q2 2026 earnings

Results filed 2026-07-28 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/pypl/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1633917/000163391726000080/0001633917-26-000080-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Net revenues | $8.7 billion | up 5% from a year ago; 3% currency-neutral | GAAP |
| Net income | $1,104 | down 12% from a year ago | GAAP |
| Diluted EPS | $1.25 | down 3% from a year ago | GAAP |
| Diluted EPS | $1.38 | down 1% from a year ago | non-GAAP |
| Operating income | $1.4 billion | down 5% from a year ago | GAAP |
| Operating margin | 16.4% | down 171 basis points from a year ago | GAAP |
| Operating margin | 17.4% | down 248 basis points from a year ago | non-GAAP |
| Cash flow from operations | $2.0 billion | up 121% from a year ago | GAAP |
| Free cash flow | $1.8 billion | up 157% from a year ago | non-GAAP |

## Segments and operating metrics

| Name | 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 | $5,048 | up 7% from a year ago |
| International net revenues | $3,634 | up 2% from a year ago |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Non-GAAP EPS | FY'26 | ~$5.38 |

## Key takeaways

1. **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.
2. **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.
3. **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.
4. **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.
5. **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.

## 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.