PayPal reported its second-quarter earnings on Tuesday, revealing a profit of $1.1 billion, or $1.25 per share, down from $1.26 billion, or $1.29 per share, a year earlier. Adjusted earnings per share, excluding certain one-time items, rose to $1.38, surpassing analysts’ expectations of $1.28 per share, according to FactSet data. Revenue reached $8.68 billion, up 5% year-over-year and above the projected $8.47 billion. Transaction margin dollars, a key profitability metric, grew by 1% to $3.9 billion.
The company updated its full-year guidance, now projecting adjusted earnings of $5.38 per share, an increase from its earlier forecast which had anticipated a decline or only slight growth from $5.31 per share in 2025. Analysts had generally expected adjusted earnings to remain flat. For the third quarter, PayPal anticipates a low-single-digit decline in adjusted earnings alongside modest growth in transaction margin dollars.
This earnings report marks PayPal’s first public financial update since receiving a takeover offer from fintech competitor Stripe and the private equity firm Advent International. The offer values PayPal at approximately $53 billion, or $60.50 per share, compared to PayPal’s share price of $58.32 at Tuesday’s close, which rose by 4% following the announcement.
Chief Executive Enrique Lores, who took the helm in March after succeeding Alex Chriss, declined to comment specifically on Stripe’s bid. Instead, he emphasized that PayPal’s board and management remain open to evaluating all opportunities to maximize shareholder value. “Our board and management team have a clear responsibility to objectively evaluate every opportunity that is presented, compare it with our own plan, and choose the option that creates more value,” Lores said.
Under Lores’s leadership, PayPal has restructured its operations into three distinct business lines and is accelerating its use of artificial intelligence. The company also plans to reduce its workforce by 20% over the next two to three years as part of a cost-cutting initiative. PayPal highlighted growth in its Venmo and Braintree platforms, alongside gains in its debit card and “buy now, pay later” services.
PayPal now expects transaction margin dollars to reach approximately $15.6 billion in 2026, up slightly from $15.5 billion in 2025, reversing its prior forecast of a slight decline in this metric. The company also said it is on track to achieve $400 million in gross run-rate savings this year and aims to realize $1.5 billion in savings over the next two to three years, reflecting progress in its turnaround strategy.