PayPal Q2 2026: revenue up 5%, non-GAAP EPS beats, margins shrink
PayPal's second quarter of 2026 is a growth story with a profit problem: revenue rose 5% to $8.68 billion and payment volume rose 10%, but earnings fell and margins contracted again. The read-through is simple — the platform is pushing more money through at a lower return, with non-GAAP framing and buybacks holding the earnings line. The honest read is balanced rather than decisive.
1 · Expected vs. Actual
Free preview belowNon-GAAP EPS of $1.38 beat the $1.3029 consensus estimate, but was still down 1% from $1.40 a year earlier. GAAP EPS fell 3% to $1.25, and the press release attributes about a $0.07 negative swing to the strategic investment portfolio and crypto assets, versus a $0.01 benefit a year ago. Non-GAAP operating income fell 8% to $1.51 billion while revenue rose 5%, so the beat sits on a shrinking profit base.
Net revenues rose 5% to $8.68 billion from $8.29 billion, but only 3% once currency moves are stripped out. Transaction revenues of $7.83 billion were 90.2% of the total, with other value-added services at $850 million. Volume grew twice as fast as revenue — total payment volume rose 10% to $486.4 billion — which means PayPal is collecting less per dollar processed.
Log in to read 35 analyses a week for free
Create a free account to read 35 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.