PayPal earnings exceeded Wall Street expectations in the third quarter, and the payments company raised its full-year adjusted profit forecast to about $5.60 per share from $5.38. Its shares nevertheless fell 1.2% in premarket trading on October 27, 2026, after quarterly revenue missed estimates.

Key Takeaways

  • Third-quarter adjusted profit was $1.45 per share, above the $1.31 analyst estimate.
  • Payment volume rose 7% on a foreign exchange-neutral basis to $487.1 billion.
  • PayPal expects $700 million in gross run-rate cost savings by the end of 2026.

PayPal earnings beat estimates as revenue falls short

For the three months ended September 30, PayPal reported revenue of $8.6 billion, below analysts’ estimate of $8.7 billion. Adjusted operating margin expanded by 16 basis points to 18.8%.

The revised full-year adjusted profit forecast also exceeds analysts’ prior expectation of $5.38 per share. The quarterly figures are results, while the full-year number remains a company forecast.

Cost reductions support the turnaround

PayPal said it was on track to achieve $700 million in gross run-rate cost savings by the end of 2026, driven by cuts to more than 2,000 jobs and a reduction of over 25% in managerial roles. Run-rate savings describe the anticipated ongoing pace of savings, rather than the amount necessarily realized during the year.

The company said operational streamlining, portfolio optimization and expanded use of artificial intelligence, including customer-service chat agents, were also supporting cost management. It has set a goal of at least $1.5 billion in gross run-rate savings over the next two to three years.

CEO Enrique Lores said PayPal was making progress in its multiyear transformation but still had more work to do. Lores took over earlier in 2026 after the board removed Alex Chriss.

Fourth-quarter profit forecast exceeds expectations

PayPal expects adjusted profit of $1.43 per share in the fourth quarter, compared with analyst expectations of $1.35 and actual adjusted profit of $1.23 a year earlier.

The fourth quarter includes the holiday shopping season, an important sales period for payment providers as retailers promote Black Friday, Cyber Monday and Christmas deals.

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