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PayPal raised its 2026 profit forecast after third quarter earnings beat expectations, Reuters reported on 27 October. The company now expects full year adjusted earnings of about $5.60 a share, up from about $5.38, as cost cuts lift margins even though revenue grew only 2%.
Reporting by Reuters. Figures from PayPal's earnings release of 27 October 2026.
Key figures
| Measure | Q3 2026 | Note |
|---|---|---|
| Net revenue | $8.6 billion | Up 2%, 1% currency neutral |
| Transaction margin dollars | $4.0 billion | Up 2% |
| Non GAAP earnings per share | $1.45 | Up 8%; analysts expected $1.31 |
| GAAP earnings per share | $1.25 | Down 4% |
| Non GAAP operating margin | 18.8% | Up 16 basis points |
| Total payment volume | $487.1 billion | Up 7% currency neutral |
| 2026 non GAAP EPS guidance | About $5.60 | Previously about $5.38 |
| Q4 2026 adjusted EPS guidance | About $1.43 | Analysts expected $1.35 |
Source: PayPal earnings release, quarter to 30 September 2026; analyst estimates as reported by Reuters (LSEG data).
Cost cuts behind the upgrade
Reuters said PayPal is on track for $700 million of gross run rate savings by the end of 2026, after cutting more than 2,000 jobs and reducing managerial roles by over a quarter. The longer term goal is at least $1.5 billion of savings over two to three years. PayPal also pointed to portfolio changes and more use of AI, including AI agents in customer service.
Enrique Lores, who became chief executive earlier this year, said in the release that the strategy was beginning to show in the results and that there was more work to do.
The Stripe and Advent offer
Earlier this year Reuters reported that Stripe and the private equity firm Advent International had offered $60.50 a share for PayPal, valuing it at about $53 billion. PayPal's board saw the offer as inadequate, according to Reuters, and the talks have since reportedly stalled. PayPal has not commented publicly on the approach.
Why it matters
PayPal still runs one of the most used checkout buttons online, but it competes with Apple Pay, Google Pay and newer fintechs for every transaction. Rising margins on flat revenue show a company focused on profit first. Compare it with Stripe or see PayPal's profile.
Sources
Primary sources we checked for this page. Trademarks belong to their owners. Links open the original.
- Reuters (via Investing.com): PayPal raises 2026 profit forecast as turnaround gains traction (accessed 3 November 2026)
- U.S. Securities and Exchange Commission: PayPal Reports Third Quarter 2026 Results (Form 8-K exhibit) (accessed 3 November 2026)
- PayPal Newsroom: PayPal Reports Third Quarter 2026 Results (accessed 3 November 2026)
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