PayPal reported second-quarter 2026 adjusted earnings per share of $1.38, surpassing the analyst consensus of $1.28, as the payments company presses on with a turnaround amid lingering questions about a potential sale. Revenue came in at $8.68 billion, above expectations of $8.47 billion.
Stripe and private equity firm Advent International made a takeover bid for PayPal at $60.50 per share, valuing the company at approximately $53.4 billion, according to reports. PayPal’s board is said to consider the offer inadequate. Analysts have described the bid as "low-ball." Cantor Fitzgerald valued PayPal at approximately $70 per share.
PayPal raised its full-year 2026 adjusted profit forecast to approximately $5.38 per share, above Wall Street expectations of $5.31. The company also expects to achieve $400 million in run-rate cost savings by the end of 2026 and at least $1.5 billion in gross run-rate cost savings over the next two to three years. PayPal plans to remove three organizational layers across the company.
Total payment volume in Q2 2026 reached $486.4 billion, up 9% on a currency-neutral basis, although some analysts reported a 10% increase. Venmo’s total payment volume grew 14%, marking its seventh consecutive quarter of double-digit growth. Buy now, pay later volume rose 26%, and Pay with Venmo volume increased 44%. PayPal World, a platform connecting Venmo and PayPal, facilitated approximately $200 million in total payment volume during the quarter.
Adjusted operating margin in Q2 2026 was 17.4%, down from 19.8% a year earlier. Non-GAAP operating income fell 8% to $1.5 billion. Adjusted free cash flow was $1.8 billion. GAAP earnings per share came in at $1.26, compared to $1.30 a year ago, below analysts’ estimate of $1.28. PayPal recorded an $81 million non-GAAP adjustment related to gains and losses from strategic investments and crypto assets.
Looking ahead, PayPal expects a low single-digit decline in third-quarter 2026 adjusted profit. The company’s Q3 2026 guidance includes low-double-digit currency-neutral revenue growth, slightly positive transaction margin dollar growth, high-single-digit growth in non-transaction operating expenses, and a low-double-digit decline in non-GAAP EPS. PayPal repurchased $1.5 billion of its stock in Q2 2026 and ended the quarter with $15.3 billion in cash equivalents and investments and $13.4 billion in debt.
PayPal’s stock rose more than 4% on the day of the earnings release, though some reports noted volatile premarket trading, and other market observers recorded a decline in share price on the same day. The stock was down 4% for the year as of the earnings day and 80% below its all-time high in 2021. The company reorganized into three units: checkout solutions and PayPal; consumer financial services and Venmo; and payment services and crypto. CEO Alex Chriss was replaced by Enrique Lores earlier in 2026, with reports differing on whether the change occurred in February or March.