- Paypal‘s Q3 revenue rose 2% to $8.58 billion, missing analyst estimates of $8.71 billion.
- Adjusted earnings of $1.45 per share beat the $1.31 consensus, boosted by share buybacks that reduced the diluted share count to 858 million.
- International revenue fell 2% to $3.58 billion, while U.S. revenue grew 5% and active accounts edged up just 0.6% to 440 million.
- PayPal raised its 2026 adjusted earnings outlook to about $5.60 per share, in line with analyst expectations, and declared a $0.14 per share dividend.
Shares of PayPal Holdings (PYPL) dipped over 3% in morning trading Tuesday after the payments firm reported its slowest quarterly net revenue growth of the year. The company said revenue rose 2% to $8.58 billion in the third quarter, falling short of the $8.71 billion analysts had expected, according to Koyfin.
Adjusted earnings stood at $1.45 per share, surpassing the $1.31 estimate, but adjusted net income fell 3% to $1.25 billion. The company spent $1.5 billion to repurchase about 28 million shares during the quarter, and over the past 12 months it bought back 117 million shares for $6 billion, which drove most of the earnings gain.
International revenue declined 2% to $3.58 billion, while U.S. revenue climbed 5% to $5 billion. Total payment volume grew 6% to $487.1 billion, yet active accounts increased only 0.6% to 440 million.
Transaction margin dollars rose 2% to $3.95 billion, but free cash flow dropped 17% to $1.43 billion. Interest earned on customer balances fell to $289 million from $321 million.
PayPal reaffirmed its GAAP outlook at about $5.07 per share and raised its 2026 adjusted earnings forecast to approximately $5.60 per share, in line with analyst estimates. For the fourth quarter, the company expects adjusted earnings of about $1.43 per share.
Chief Executive Officer Enrique Lores said the turnaround is progressing. “We are making good progress in our multi-year transformation, and while there is more work to do, we are increasingly confident in our path to durable, profitable growth.”
The board declared a dividend of $0.14 per share payable Dec. 24 to stockholders of record Dec. 4. On Stocktwits, retail sentiment around PayPal turned “extremely bullish” from “bearish” over the past day, with chatter rising to “extremely high” levels. For updates, follow on Google News.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
