PayPal Holdings, Inc.

Second quarter revenue grew 5% on a spot basis and 3% currency-neutral. Total payment volume was $486 billion, up 9% currency-neutral. Non-GAAP EPS was $1.38, down 1% year over year. Transaction margin dollars excluding interest on customer balances grew 3%; transaction revenue was $7.8 billion. Adjusted free cash flow was $1.8 billion. On the balance sheet, PayPal ended the quarter with $15.3 billion in cash, cash equivalents and investments and $13.4 billion in debt. For 2026, management 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, adjusted free cash flow of at least $6 billion, and approximately $6 billion in share repurchases. They also raised full-year online branded checkout TPV growth to low single digits currency-neutral. For Q3, they expect low single-digit currency-neutral revenue growth, slightly positive transaction margin dollars growth, high-single-digit nontransaction OpEx growth, and non-GAAP EPS to decline within a low-single-digit range.

Enrique Lores framed the quarter as evidence that PayPal's transformation is starting to show up in the numbers, emphasizing simpler operations, stronger execution and a more focused strategy across the company's three businesses. He said the company is diversifying beyond checkout into financial services, expanding Venmo and Braintree, rebuilding the consumer side of the network, and modernizing technology with AI and data capabilities. His tone was confident but measured: he repeatedly described the plan as multiyear, said there is still work ahead, and noted PayPal remains open to options that could create superior shareholder value.

Jamie Miller emphasized that the quarter came in above plan, with transaction margin dollars and EPS both beating guidance. She cited $486 billion in TPV, $7.8 billion in transaction revenue, $1.8 billion in adjusted free cash flow, and a 3% increase in transaction margin dollars excluding interest on customer balances; she also noted non-GAAP operating income fell 8% to $1.5 billion because PayPal increased investments in platform/cloud modernization, risk capabilities, and growth initiatives. On capital allocation, the company completed $1.5 billion of share repurchases in the quarter and said it still expects about $6 billion of repurchases for the full year. She also said at least $1.5 billion of gross run-rate cost savings over 2 to 3 years remains on track, with about $400 million of new run-rate gross savings targeted by year-end and a possible $120 million to $140 million transformation charge in 2H 2026.

Analysts focused on the cost-savings program, how much would be reinvested, and when those savings would start lifting transaction margin dollar growth; management said most savings will be reinvested over time into technology, risk, financial services, BNPL, and consumer-platform improvements, with the program largely self-funding the strategy. Questions also centered on synergies among PayPal, Braintree and Venmo, and on whether M&A speculation could affect merchant relationships; Enrique Lores said the three businesses have meaningful customer and technology synergies, but PayPal's priority remains executing its own plan while staying open to value-creating alternatives. Other questions probed branded checkout geography and trends, with management saying the U.S. improved, Europe was stable to slightly better, and competitive intensity remains a factor, as well as BNPL acceleration and the company’s view on rates, where Jamie Miller said no additional rate changes are assumed for this year.