PayPal (NASDAQ:PYPL) delivered stronger-than-expected second-quarter results, exceeding Wall Street forecasts for both earnings and revenue while increasing its profit outlook for the full year.
Adjusted earnings per share came in at $1.38, comfortably ahead of analysts’ expectations of $1.28. Revenue reached $8.68 billion, representing 3% growth on a currency-neutral basis and surpassing the consensus forecast of $8.47 billion.
Higher Earnings Outlook Reflects Improved Business Momentum
Following its stronger quarterly performance, PayPal raised its full-year 2026 earnings guidance.
The company now expects earnings per share of $5.38 for the year, improving on its previous outlook, which had called for results ranging from a low-single-digit decline to slightly positive growth. The revised forecast also exceeds the analyst consensus estimate of $5.31.
For the third quarter, PayPal expects adjusted earnings per share to decline by a low-single-digit percentage compared with the prior-year figure of $1.34.
“I’m encouraged by the progress we made this quarter. We moved with urgency to sharpen our transformation plan and advance our growth strategies across our three businesses,” said Enrique Lores, CEO of PayPal.
“Based on the strength of our execution and confidence in the trajectory of the business, we’re raising our full-year non-GAAP guidance. Our transformation is well underway, and we’re executing with discipline on our priorities to deliver durable, profitable growth over the long term.”
Payments Activity Continues to Expand
Transaction margin dollars increased 1% year over year to $3.9 billion during the quarter.
Excluding interest earned on customer balances, transaction margin dollars rose 3% to $3.6 billion.
Adjusted operating income declined 8% to $1.5 billion, while the adjusted operating margin narrowed by 248 basis points to 17.4%.
Payment Volumes Reach New Highs
Total payment volume climbed 10% to $486.4 billion, or 9% on a currency-neutral basis.
The number of payment transactions increased 8% to 6.8 billion, or 7% excluding payment service provider (PSP) transactions.
Payment transactions per active account rose to 60.0 over the trailing 12 months, representing a 3% increase, or 7% excluding PSP transactions.
PayPal ended the quarter with 439 million active accounts, up 0.3% from a year earlier. However, the total slipped slightly from the previous quarter, declining by approximately 0.2 million accounts.
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