PayPal Holdings, Inc.

Q3 2026 revenue grew 2% on a spot basis and 1% currency neutral. Transaction margin dollars increased 2%, or 3% excluding interest on customer balances. Non-GAAP EPS was $1.45, up 8%. Adjusted free cash flow was $2 billion, and the company returned over $1.6 billion through buybacks and dividends; it also completed $1.5 billion in share repurchases in the quarter. For full-year 2026, PayPal raised guidance to approximately $15.7 billion in transaction margin dollars, approximately $14.6 billion excluding interest on customer balances, mid-single-digit growth in non-transaction operating expenses, and non-GAAP EPS of approximately $5.60. It now expects at least $6.5 billion of adjusted free cash flow and about $6 billion in share repurchases. For Q4, management guided to low-double-digit revenue growth on a currency-neutral basis, slightly positive transaction margin dollars growth, flat to low-single-digit non-transaction operating expense growth, and non-GAAP EPS of approximately $1.43.

Enrique Lores framed the quarter as evidence that PayPal’s simplification and operating changes are starting to show up in the numbers. He emphasized a more diversified business model, with financial services, Venmo, and payment services expected to drive a greater share of growth over time, and said the company is building toward mid-single-digit transaction margin dollar growth and solid double-digit EPS growth. His tone was confident but measured: he repeatedly noted the company is still early in a multi-year transformation and that more work remains.

Jamie Miller said Q3 came in ahead of plan because transaction margin dollars were better than expected and operating expenses were below forecast. She pointed to lower transaction expense rate, lower transaction losses, and lower credit losses as contributors, while also noting that non-transaction operating expenses grew only 1% and non-GAAP operating income grew 3%. She highlighted strong cash generation, with $2 billion of adjusted free cash flow and $1.5 billion of buybacks in the quarter, and said the company intends to stay disciplined while reinvesting savings into financial services, product growth, consumer marketing, and specialized sales teams.

Analysts pressed management on the 2027 earnings algorithm, branded checkout momentum, Europe’s de minimis headwinds, Venmo monetization, PSP value-added services, and M&A. Management said 2027 is too early for formal guidance, but it expects continued investment and a roughly consistent EPS growth profile with 2026 while building toward stronger growth in 2028 and beyond. On Europe, management said the de minimis impact is persisting into Q4 and that the company is applying its U.S. merchant playbook there next year; on Venmo, it cited a 4x to 5x ARPA opportunity and more than 40% Pay with Venmo TPV growth; on PSP, it said value-added services attach improved from 5% to 6% and will be a key sales focus. On M&A, Enrique Lores said any deal would need to fit strategy, create strong financial returns, and have a solid integration plan.