PayPal (NASDAQ:PYPL) Announces Earnings Results, Beats Expectations By $0.10 EPS

PayPal (NASDAQ:PYPL) posted its quarterly earnings data on Tuesday. The credit services provider reported $1.38 EPS for the quarter, beating analysts’ consensus estimates of $1.28 by $0.10, FiscalAI reports. PayPal had a return on equity of 25.02% and a net margin of 15.00%.The company had revenue of $8.68 billion during the quarter, compared to analysts’ expectations of $8.47 billion. During the same quarter in the prior year, the business earned $1.40 earnings per share. PayPal’s revenue for the quarter was up 4.8% compared to the same quarter last year.

PayPal Stock Performance

Shares of PYPL opened at $56.07 on Tuesday. The business has a 50-day simple moving average of $45.94 and a two-hundred day simple moving average of $47.02. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.47. PayPal has a 52 week low of $38.46 and a 52 week high of $79.50. The stock has a market cap of $49.46 billion, a price-to-earnings ratio of 10.52, a PEG ratio of 1.40 and a beta of 1.33.

PayPal Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th were given a $0.14 dividend. The ex-dividend date was Thursday, June 4th. This represents a $0.56 dividend on an annualized basis and a yield of 1.0%. PayPal’s dividend payout ratio is presently 10.51%.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal officially released its second-quarter 2026 results before the market opened on July 28. The report provides the latest evidence on payment volume, revenue growth, profitability and management’s outlook, which could improve sentiment if results or guidance exceed expectations. PayPal Reports Second Quarter 2026 Results
• Positive Sentiment: Analysts were expecting approximately $1.28 in adjusted earnings per share and $8.47 billion in revenue. A beat, particularly if accompanied by resilient transaction growth, could support the shares. PayPal Q2 Forecasts
• Positive Sentiment: Reports that Stripe and Advent International proposed a roughly $53 billion acquisition have kept strategic-value speculation elevated. Any indication that PayPal is reconsidering discussions, receiving additional interest or pursuing shareholder-friendly alternatives could provide further support. PayPal Acquisition Rumors
• Neutral Sentiment: Investors were closely watching whether management would address the Stripe proposal during the earnings call. Prediction-market and analyst coverage reflects unusually high event risk around the report, but does not establish that a transaction will occur. PayPal Earnings and Stripe Preview
• Negative Sentiment: Pre-earnings analysis warned that lower margins could weigh on second-quarter earnings even if payment volume increased. Investors may therefore focus more on transaction profitability, branded checkout trends and forward margins than on revenue alone. PayPal Q2 Margin Analysis

Analysts Set New Price Targets

PYPL has been the subject of a number of recent research reports. Cantor Fitzgerald restated a “neutral” rating on shares of PayPal in a research note on Thursday, July 16th. Loop Capital started coverage on shares of PayPal in a research note on Tuesday, March 31st. They issued a “hold” rating and a $46.00 price objective on the stock. Truist Financial raised shares of PayPal from a “sell” rating to a “hold” rating and raised their price objective for the stock from $44.00 to $57.00 in a report on Friday. Zacks Research upgraded shares of PayPal from a “strong sell” rating to a “hold” rating in a research report on Friday, April 17th. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of PayPal in a report on Tuesday, May 5th. Nine investment analysts have rated the stock with a Buy rating, thirty-four have given a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, PayPal presently has a consensus rating of “Hold” and an average target price of $54.96.

Insider Activity

In related news, insider Frank Keller sold 10,732 shares of the business’s stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $49.96, for a total transaction of $536,170.72. Following the completion of the transaction, the insider directly owned 41,567 shares in the company, valued at approximately $2,076,687.32. The trade was a 20.52% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $42.79, for a total transaction of $144,587.41. Following the completion of the sale, the insider directly owned 30,983 shares of the company’s stock, valued at $1,325,762.57. This represents a 9.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 20,612 shares of company stock valued at $966,623 in the last ninety days. Corporate insiders own 0.63% of the company’s stock.

Hedge Funds Weigh In On PayPal

A number of hedge funds have recently modified their holdings of PYPL. Revolve Wealth Partners LLC purchased a new stake in PayPal in the 4th quarter worth $248,000. United Bank lifted its position in shares of PayPal by 40.1% in the second quarter. United Bank now owns 17,388 shares of the credit services provider’s stock valued at $1,292,000 after acquiring an additional 4,974 shares in the last quarter. Brighton Jones LLC lifted its position in shares of PayPal by 15.2% in the fourth quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider’s stock valued at $596,000 after acquiring an additional 924 shares in the last quarter. Sivia Capital Partners LLC boosted its stake in shares of PayPal by 41.5% in the second quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider’s stock worth $332,000 after acquiring an additional 1,310 shares during the period. Finally, GeoWealth Management LLC boosted its stake in shares of PayPal by 6.2% in the third quarter. GeoWealth Management LLC now owns 3,214 shares of the credit services provider’s stock worth $216,000 after acquiring an additional 188 shares during the period. 68.32% of the stock is currently owned by institutional investors.

PayPal Company Profile

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and merchants to send and receive payments online, on mobile devices and at the point of sale. The company provides a broad set of payment solutions, including a digital wallet, merchant payment processing, checkout services, invoicing and fraud-management tools. PayPal’s platform is designed to support e-commerce, in-person retail and person-to-person transfers, targeting both individual consumers and businesses of varying sizes.

Key products and services in PayPal’s portfolio include the PayPal wallet and checkout ecosystem, the Venmo peer-to-peer mobile app, Braintree’s developer-focused payment gateway, Xoom for international money transfers, and PayPal Credit and buy-now-pay-later options.