PayPal earnings for the third quarter of 2026 showed revenue rising 2% to $8.584 billion, while GAAP operating income fell 8% to $1.402 billion. Revenue and reported earnings per share were below analyst estimates, even as payment activity increased.

Key Takeaways

  • Total payment volume rose 6% to $487.1 billion in the quarter ended September 30.
  • GAAP diluted earnings were $1.25 per share, while non-GAAP diluted earnings rose 8% to $1.45.
  • PayPal repurchased approximately $1.5 billion of shares and declared a $0.14-per-share cash dividend.

PayPal earnings show a gap between growth and profit

In results filed on October 27, PayPal reported revenue below the analyst estimate of $8.71283 billion. GAAP diluted earnings per share were also below the $1.26 estimate. Non-GAAP diluted earnings per share exceeded analyst expectations, although the estimate for that measure was not specified.

GAAP operating margin narrowed by 173 basis points to 16.3%, meaning a smaller share of revenue remained as operating income. Net income fell 14% to $1.073 billion. Transaction margin dollars, a separate measure, increased 2% to $4.0 billion.

Payment activity and cash returns

PayPal processed 6.8 billion payment transactions, up 7% from a year earlier. Total payment volume grew faster than revenue, although the available figures do not establish a specific cause for the difference.

Cash flow from operations was $1.6 billion. Free cash flow fell to $1.431 billion from $1.718 billion in the third quarter of 2025. The company also repurchased shares during the quarter and declared a cash dividend.

Update — 2026-10-27

PayPal’s board declared a $0.14-per-share cash dividend payable in late December, adding a payment window to the dividend disclosure in its third-quarter results. In an earlier second-quarter announcement, PayPal said its earnings release and related materials for that period were available on its investor relations website.

Read More News

More FinanceVelix news

Disclaimer

This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.