PayPal (PYPL) Q3 2026 Earnings Call: Guidance and Outlook
PayPal raised its full-year 2026 financial guidance for transaction margin dollars, non-GAAP EPS, and adjusted free cash flow, while providing initial expectations for the fourth quarter.
About PayPal. PayPal Holdings, Inc. provides a worldwide technological framework that facilitates digital financial transactions for both businesses and individual users. The company offers a wide array of payment services through well-known brands such as PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy.
Low single-digit revenue growth on a currency-neutral basis.
Transaction Margin Dollars
Slight positive growth in transaction margin dollars, and TM$ excluding interest on customer balances to be slightly positive.
Non-transaction operating expenses
Flat to low single-digit growth.
Non-GAAP EPS
Approximately $1.43.
Annual guidance
Transaction Margin Dollars
Increase to approximately $15.7 billion, or $14.6 billion excluding interest on customer balances.
Non-transaction operating expenses
Mid-single-digit growth.
Non-GAAP EPS
Increase to approximately $5.60.
Adjusted free cash flow
At least $6.5 billion.
Share repurchases
Approximately $6 billion.
Outlook
Mid-term transaction margin growth
Sustainable total company transaction margin dollar growth in the mid-single-digit range driven by venmo, processing, and financial services.
Mid-term EPS growth
Solid double-digit EPS growth enabled by transaction margin growth, operating leverage, and share repurchases.
2027 outlook
Targeting 2027 non-GAAP EPS growth similar to 2026 as the business scales investments in transaction margin dollars and operating expenses.
European headwinds
Headwinds in Europe, including the removal of the de minimis tax exemption, are expected to continue and result in similar 1% to 2% online branded growth throughout the fourth quarter.
Cost reduction run rate
On track to achieve at least $1.5 billion in gross run rate cost savings over 2 to 3 years, with more than $700 million exiting the fourth quarter.
Dombey's summary of the PayPal Q3 2026 earnings call held Oct 27, 2026, written from the call itself. Every figure on this page was checked against what was said on the call, and quoted lines are management's own words; we do not add estimates or prices. The tone score is our read of management's wording, guidance and answers. Check figures against the company's SEC filings before acting. This is research, not investment advice.
