PayPal Reports Q3 2026 Results and Raises Full-Year Non-GAAP Guidance

Overview of Filing

On October 27, 2026, PayPal Holdings, Inc. (NASDAQ: PYPL) filed Form 8-K under Item 2.02 (Results of Operations and Financial Condition), announcing financial results for its third quarter ended September 30, 2026, and furnishing Exhibit 99.1 (Press Release).

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Third Quarter 2026 Operational & Financial Performance

• Net Revenues: Totaled $8.584 billion, up 2% year-over-year (1% FX-neutral) compared to $8.417 billion in Q3 2025.
• Total Payment Volume (TPV): Increased 6% year-over-year (7% FX-neutral) to $487.138 billion compared to $458.088 billion in the prior year period.
• Transaction Margin Dollars (TM$): Increased 2% to $3.950 billion; TM$ excluding interest on customer balances rose 3% to $3.661 billion.
• Operating Income & Margins:
  • GAAP Operating Income: $1.402 billion (operating margin of 16.3%, down 173 bps YoY).
  • Non-GAAP Operating Income: $1.613 billion (operating margin of 18.8%, up 16 bps YoY).
• Diluted EPS:
  • GAAP Diluted EPS: $1.25, a 4% decrease YoY compared to $1.30 in Q3 2025.
  • Non-GAAP Diluted EPS: $1.45, an 8% increase YoY compared to $1.34 in Q3 2025.
• Account & Activity Metrics:
  • Total active accounts reached 440 million, up 0.6% YoY and up 1.6 million sequentially.
  • Payment transactions reached 6.8 billion, up 7% YoY.
  • Transactions per active account (TPA) on a trailing 12-month basis reached 60.8 (+6% YoY).

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Cash Flow & Capital Allocation

• Cash Flow from Operations: $1.592 billion; Free Cash Flow: $1.431 billion; Adjusted Free Cash Flow: $2.047 billion.
• Liquidity & Balance Sheet: Cash, cash equivalents, and investments totaled $15.1 billion, against $13.5 billion in total debt as of September 30, 2026.
• Share Repurchases: Repurchased approximately 28 million common shares for $1.5 billion during Q3 2026 ($6.0 billion across 117 million shares over the trailing 12 months).
• Cash Dividend: The Board declared a quarterly cash dividend of $0.14 per share, payable on December 24, 2026, to stockholders of record as of December 4, 2026.

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Updated Financial Guidance

• Full-Year 2026 Non-GAAP EPS: Raised to approximately $5.60 (versus ~$5.38 guided in July 2026 and $5.31 in FY 2025).
• Full-Year 2026 GAAP EPS: Expected to be approximately $5.07 (reaffirmed mid-single digit decline YoY relative to $5.41 in FY 2025, which included ~$0.14 from investment gains).
• Fourth Quarter 2026 Outlook: GAAP EPS estimated at ~$1.37; Non-GAAP EPS estimated at ~$1.43.