PayPal Holdings, Inc.

Q2 revenue increased 5% on a spot basis and 3% on a currency-neutral basis to $7.8 billion in transaction revenue. Total payment volume was $486 billion, up 9% currency-neutral. Transaction margin dollars excluding interest on customer balances grew 3%, while reported transaction margin dollars grew 1%; non-GAAP EPS declined 1% to $1.38. Adjusted free cash flow was $1.8 billion. For the full year 2026, PayPal now expects transaction margin dollars of approximately $15.6 billion, or $14.5 billion excluding interest on customer balances, non-GAAP EPS of $5.38, low single-digit currency-neutral online branded checkout TPV growth, at least $6 billion of adjusted free cash flow, and approximately $6 billion of share repurchases. For Q3, it expects low single-digit currency-neutral revenue growth, slightly positive to low-single-digit transaction margin dollar growth excluding interest, high-single-digit nontransaction OpEx growth, and non-GAAP EPS to decline in a low-single-digit range.

Enrique Lores framed the quarter as evidence that PayPal’s transformation is taking hold, pointing to faster execution, a leaner operating model, and more focused investment priorities. He emphasized a shift toward financial services, stronger Venmo and Braintree growth, a more consumer-centric checkout strategy, and technology modernization, including AI and data capabilities. His tone was confident but measured, repeatedly saying there is still important work ahead while expressing conviction that the plan can create long-term shareholder value.

Jamie Miller said the quarter benefited from broad-based TM dollar growth, with Venmo monetization, credit, and Braintree all contributing, plus FX favorability and lower losses. She cited 90 basis points of transaction expense as a percentage of TPV, 7 basis points of transaction loss, and said non-GAAP operating income fell 8% to $1.5 billion due to heavier investment and the lapping of a nonrecurring partner benefit. On capital allocation, she noted $1.5 billion of repurchases in the quarter, $6 billion over the trailing 12 months, and quarter-end cash, cash equivalents and investments of $15.3 billion versus $13.4 billion of debt. She also reiterated at least $1.5 billion of gross run-rate cost savings over 2-3 years, about $400 million of new run-rate gross savings by year-end, and a potential $120 million to $140 million transformation charge in 2H26.

Analysts focused on how much of the cost savings would be reinvested, and management said much of the savings will be redeployed into technology, risk, financial services, BNPL, Venmo, and consumer-network improvements, with the aim of self-funding growth. Questions also probed synergies across PayPal, Braintree, and Venmo and whether M&A speculation was affecting execution; management said the three businesses have meaningful customer, technology, risk, and identity synergies, but the current focus is executing the plan and maximizing shareholder value. Other questions covered branded checkout dynamics outside the U.S., where management said Europe improved slightly, though competitive intensity remains higher and travel was a pressure point earlier in the quarter. Analysts also asked about BNPL acceleration and rate assumptions; management said BNPL growth was driven by broader distribution, geography expansion, and merchant wins, while rates are no longer expected to change this year.