PYPLEarnings

PYPL Q2 2026 Transaction Margin Dollars Growth +1% Y/Y ($3,900M), Miss Guidance by -2.0 pts

PYPL miss prior Q2 2026 Transaction Margin Dollars Growth guidance by -2.0 pts. FY 2026 Transaction Margin Dollars was raised by Approximately +$100M-$300M raise vs prior implicit midpoint to ~$15.6B (approximately +1% Y/Y). Management also issued Q3 2026 guidance of slightly positive Transaction Margin Dollars growth and a low-single-digit decline in Non-GAAP EPS.

Published July 28, 2026 at 7:07 AM EDTPayPal Holdings, Inc.Investor relations

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Guidance comparison

Q2 2026 Transaction Margin Dollars GrowthQ2 2026

+1% Y/Y ($3,900M)Guide Low-single digit decline, approximately -3% | miss | -2.0 pts

Q2 2026 TM$ ex. Interest on Customer Balances GrowthQ2 2026

+3% Y/Y ($3,619M)Guide Low-single digit decline | beat | Approximately +4 to +6 percentage points vs guided midpoint

Q2 2026 Non-GAAP EPS GrowthQ2 2026

-1% Y/Y ($1.38)Guide High-single digit decline or approximately -9% | miss | -8.0 pts

Q2 2026 GAAP EPS GrowthQ2 2026

-3.1% Y/Y ($1.25 vs $1.29)Guide Mid-single digit decline (~-4% to -6%) | miss | -0.9 pts

Q2 2026 Non-GAAP Effective Tax RateQ2 2026

17%Guide 20% | miss | -3.0 pts | -15%

Guidance updates

FY 2026 Transaction Margin DollarsFY 2026

~$15.6B (approximately +1% Y/Y)Prior Slight decline (implied ~$15.3B based on FY 2025 TM$ of $15,465M) | raised | Approximately +$100M-$300M raise vs prior implicit midpoint

FY 2026 TM$ ex. Interest on Customer BalancesFY 2026

~$14.5BPrior Roughly flat (vs FY 2025 of $14,235M, implied ~$14.2B) | raised | +$12.47B

FY 2026 Non-GAAP Non-Transaction Operating Expenses GrowthFY 2026

7%-8% growthPrior ~3% growth | raised | +4.0 pts

FY 2026 Non-GAAP Effective Tax RateFY 2026

18%-20%Prior 19%-21% | cut | -1.0 pts

FY 2026 Non-GAAP EPSFY 2026

~$5.38 (approximately +1.3% Y/Y)Prior Low-single digit decline to slightly positive from FY 2025 EPS of $5.31 (implied ~$5.14-$5.31) | cut | -2023.7 pts

FY 2026 GAAP EPS GrowthFY 2026

Mid-single digit declinePrior Mid-single digit decline from FY 2025 GAAP EPS of $5.41 | maintained

Forward guidance

FY 2026 Transaction Margin DollarsFY 2026

~$15.6BApproximately +1% vs FY 2025 TM$ of $15,465M

FY 2026 TM$ ex. Interest on Customer BalancesFY 2026

~$14.5BApproximately +2% vs FY 2025 of $14,235M

FY 2026 Non-GAAP Non-Transaction Operating Expenses GrowthFY 2026

7% - 8%7.5% growth Y/Y

FY 2026 Non-GAAP Effective Tax RateFY 2026

18% - 20%

FY 2026 Non-GAAP EPSFY 2026

~$5.38Approximately +1.3% vs FY 2025 Non-GAAP EPS of $5.31

FY 2026 GAAP EPS GrowthFY 2026

Mid-single digit declineDown from FY 2025 GAAP EPS of $5.41

FY 2026 Adjusted Free Cash FlowFY 2026

$6B+

Key takeaways

Q2 2026 Revenue $8,682M, +5% Y/Y (+3% FXN); TPV $486,448M, +10% Y/Y (+9% FXN)
Q2 2026 Non-GAAP EPS $1.38 vs Q2 2025 $1.40, -1% Y/Y; GAAP EPS $1.25 vs Q2 2025 $1.29
Q2 2026 Transaction Margin Dollars $3,900M, +1% Y/Y; ex. interest on customer balances +3% Y/Y
Q2 2026 Non-GAAP Operating Income $1,507M, -8% Y/Y; Non-GAAP Operating Margin 17.4%, -248 bps
Q2 2026 Adjusted Free Cash Flow $1,832M, +179% Y/Y; returned $1.5B via buybacks and ~$125M in dividends
Raised FY2026 Transaction Margin Dollars guidance to ~$15.6B (prior implied slight decline) and TM$ ex-interest to ~$14.5B (prior 'roughly flat')
Raised FY2026 Non-GAAP Non-Transaction Opex Growth outlook to 7%-8% (from ~3%) reflecting deliberate growth investments

Key metrics

Total Payment Volume (TPV)Q2 2026

$486,448M+10% (+9% FXN)

Total RevenueQ2 2026

$8,682M+5% (+3% FXN)

Transaction RevenueQ2 2026

$7,832M+5%

OVAS RevenueQ2 2026

$850M0%

Transaction Margin Dollars (TM$)Q2 2026

$3,900M+1%

TM$ ex. Interest on Customer BalancesQ2 2026

$3,619M+3%

Transaction Margin %Q2 2026

44.9%-146 bps

Non-GAAP Operating IncomeQ2 2026

$1,507M-8%

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.

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