PayPal lifts full-year EPS guidance as Q3 adjusted EPS rises 8%

PayPal raised its full-year non-GAAP earnings guidance after third-quarter adjusted EPS rose 8%, as CEO Enrique Lores said the company's strategy is "beginning to translate into results."

Net revenue rose 2% to $8.6 billion, or 1% on a currency-neutral basis, according to the earnings release attached to its 8-K on Tuesday. Non-GAAP EPS increased 8% to $1.45, while GAAP EPS fell 4% to $1.25. Transaction margin dollars, a key profit measure, rose 2% to $4.0 billion; excluding interest on customer balances, they rose 3% to $3.7 billion.

"We are making good progress in our multi-year transformation, and while there is more work to do, we are increasingly confident in our path to durable, profitable growth," Lores said.

Volume and accounts

Total payment volume rose 6% to $487.1 billion, and payment transactions increased 7% to 6.8 billion. Active accounts grew 0.6% to 440 million, adding 1.6 million from the prior quarter.

GAAP operating margin contracted to 16.3%, while non-GAAP operating margin expanded slightly to 18.8%.

Cash return

PayPal generated $1.6 billion of operating cash flow and $1.4 billion of free cash flow, and repurchased about 28 million shares for $1.5 billion in the quarter. The board declared a dividend of $0.14 per share, payable Dec. 24 to holders of record on Dec. 4.

Guidance

PayPal now expects 2026 non-GAAP EPS of about $5.60, up from about $5.38 in its July guidance, and GAAP EPS of about $5.07. For the fourth quarter, it projects non-GAAP EPS of about $1.43 and GAAP EPS of about $1.37.

By the numbers

• Q3 net revenue: $8.6 billion, up 2%
• Non-GAAP EPS: $1.45, up 8%
• Total payment volume: $487.1 billion, up 6%
• Q3 buybacks: $1.5 billion
• 2026 non-GAAP EPS guidance: about $5.60

Sources

1. PayPal Holdings, Inc., Form 8-K with third quarter 2026 earnings release, filed Oct. 27, 2026 (accession 0001633917-26-000086)

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