PYPL 10-Q filed 2026-07-28 | Key takeaways
PYPL filed its 10-Q; the most relevant disclosure change is added Long-term debt and notes: In May 2026, PayPal issued $2.0 billion aggregate principal of senior unsecured fixed-rate notes ($650M 4.550% due 2028, $850M 4.950% due 2031, $500M 5.550% due 2036), bringing total term debt principal to $12,728M at June 30, 2026 versus $10,884M at December.
Key takeaways
Q2 2026 net revenues grew 5% YoY to $8,682M; net income declined 12% to $1,104M and diluted EPS fell 3% to $1.25, with operating margin down 2 percentage points to 16%.
Operating cash flow rose 121% YoY to $1,983M in Q2 2026; H1 2026 operating cash flow was $3,117M, up 51% YoY.
May 2026: $2.0B senior unsecured notes issued across three tranches ($650M 4.550% due 2028, $850M 4.950% due 2031, $500M 5.550% due 2036), with proceeds for general corporate purposes including potential redemption of outstanding debt and share repurchases; total term debt principal rose to $12,728M at 6/30/2026 from $10,884M at 12/31/2025.
April 2026 business simplification program targets at least $1.5B in gross annualized run-rate savings over 2-3 years; first-phase actions expected to generate approximately $400M in run-rate gross savings, with a $120M-$140M transformation charge anticipated in H2 2026.
H1 2026 buybacks: approximately 67 million shares for $3,052M at an average cost of $44.99/share; approximately $10.9B remaining authorization under the February 2025 program.
TPV grew 10% YoY to $486.4B in Q2 2026; payment transactions rose 8% to 6.75B; active accounts were flat at 439M.
May 2026 stockholders approved the 2026 Equity Incentive Award Plan authorizing up to 39.1M new shares plus up to 44.6M shares potentially recycled from the prior 2015 Plan.
Key metrics
Disclosure changes
- Long-term debt and notes
In May 2026, PayPal issued $2.0 billion aggregate principal of senior unsecured fixed-rate notes ($650M 4.550% due 2028, $850M 4.950% due 2031, $500M 5.550% due 2036), bringing total term debt principal to $12,728M at June 30, 2026 versus $10,884M at December 31, 2025.
$2.0 billion incremental fixed-rate debt with proceeds available for general corporate purposes including refinancing of the $1,250M 2.650% notes maturing October 1, 2026 and continued share repurchases under the February 2025 program. - Restructuring and other - Strategic reorganization April 2026
In April 2026, PayPal announced a strategic reorganization and business simplification program expected to deliver at least $1.5 billion in gross annualized run-rate savings over the next two to three years. Q2 2026 restructuring charges of $44 million were recorded, primarily employee severance and benefits including stock-based compensation. A first phase of actions, expected to be completed by year-end 2026, could generate approximately $400 million of run-rate gross savings and result in a $120M-$140M transf...
New multi-year cost program targeting at least $1.5B in annualized run-rate savings; near-term $120-140M charge expected in H2 2026 with $400M of run-rate gross savings identified. - Restructuring and other - 2Q 2025 Plan updates
The 2Q 2025 Plan workforce component was completed in Q2 2026; technology infrastructure component expected to be substantially completed in 2028. Q2 2026 restructuring charges of $2M and YTD charges of $13M were recorded, with reserve activity showing $11M net reversal of severance charges. Total plan costs incurred to date is $115M.
The workforce component has now been completed; the revised expected annualized cost savings are now approximately $260M (down from $280M previously). - Legal proceedings - Branded Checkout Securities Litigation
On May 21, 2026, the Norfolk Securities Action was consolidated with the Darcy Securities Action under the caption In re PayPal Branded Checkout Securities Litigation, with five retirement systems appointed as lead plaintiffs. The litigation remains based on allegations that the Company failed to disclose impediments to its branded checkout growth strategy that impaired its ability to meet its 2027 financial targets.
Consolidation of multiple securities class actions into a single matter focused on branded checkout growth strategy and 2027 financial targets; plaintiffs filed an appeal in the PPH Securities Action on April 30, 2026. - Legal proceedings - Branded Checkout Derivative Actions
Four additional shareholder derivative actions (LR Trust Action, Stan Action, Lovoi Action, Haliburton Action) were filed between May 6, 2026 and June 3, 2026 based on the same allegations as the Branded Checkout Securities Litigation. On July 10, 2026, four of these derivative actions were consolidated as In re PayPal Holdings, Inc. Stockholder Derivative Litigation.
Multiple new derivative actions consolidating around the same branded checkout allegations, alleging breach of fiduciary duty and other claims against current and former officers and directors. - Stockholders' equity - 2026 Equity Incentive Award Plan
In May 2026, stockholders approved the PayPal Holdings, Inc. 2026 Equity Incentive Award Plan, replacing the 2015 Plan as the source of equity awards granted on or after May 19, 2026. The 2026 Plan authorizes up to 39.1 million new shares plus up to 44.6 million shares potentially recycled from the 2015 Plan.
New equity incentive plan increases the pool of shares available for equity compensation; potential dilution from equity awards.
Primary source
TickerStar generated this brief from an official company, investor-relations, earnings-call, or regulatory source. Review the primary material before making an investment decision.
Open SEC filingFollow PYPL in real time
Get material earnings, filing, IR, and earnings-call alerts by email.