PayPal Q2 Earnings Beat Estimates, Raises 2026 Forecast

PayPal Holdings Inc. reported stronger-than-expected second-quarter financial results on Tuesday, July 28, 2026, beating analyst estimates on both revenue and profit while raising its full-year forecast. The earnings report arrives as the digital payments giant evaluates a takeover proposal from rival Stripe and private equity firm Advent International valued at approximately $53 billion.

The company posted adjusted earnings per share of $1.38 for the quarter, surpassing the $1.28 consensus estimate. Revenue reached $8.68 billion, a 5% year-over-year increase that exceeded the $8.47 billion analysts had projected. Total payment volume surged 10% to $486.4 billion, and the active account base grew 0.3% to 439 million.

Despite the top-line strength, net income declined to $1.1 billion, or $1.25 per diluted share, from $1.26 billion, or $1.29 per share, in the same period last year. Adjusted operating income fell 8% to $1.5 billion, with the adjusted operating margin contracting by 248 basis points to 17.4%. Transaction margin dollars, a key profitability metric, edged up 1% to $3.9 billion.

In a significant update, PayPal raised its full-year 2026 adjusted earnings per share...