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PayPal Lifts Profit Guidance Despite Revenue Miss

PayPal beat third-quarter profit forecasts and raised its full-year earnings guidance, but revenue missed and the shares have barely moved, leaving the quarter a story about margins rather than growth.

PayPal (NASDAQ: PYPL) beat third-quarter profit expectations and raised its full-year earnings guidance, even though revenue came in below forecasts. The payments group’s shares were little changed in US trading today.

The shares were up 0.11% at $55.051 by 2.18pm London time, from a previous close of $54.99, inside a day range of $54.34 to $56.63. They fell about 3.6% yesterday, from $57.02.

PYPL.US

Adjusted earnings per share were $1.45, against $1.34 a year earlier and a Zacks consensus of $1.31 from 11 analysts. Revenue of $8.58bn missed the $8.70bn consensus from nine analysts, though it was about 1.9% above the $8.42bn of a year earlier. Net income under US accounting rules was $1.07bn, or $1.25 a share.

Transaction margin dollars, which is revenue minus direct transaction costs, came to $3.95bn against the $3.89bn analysts expected. The raised guidance puts full-year adjusted EPS at about $5.60, up from $5.38.

Metric Reported Consensus/Guidance
Q3 adjusted EPS $1.45 $1.31 (Zacks, 11 analysts)
Q3 revenue $8.58bn $8.70bn (Zacks, 9 analysts)
Q3 transaction margin dollars $3.95bn $3.89bn (analyst expectation)
Q4 adjusted EPS guidance $1.43 $1.36 (Zacks)
FY26 adjusted EPS guidance About $5.60 (from $5.38) $5.39 (Zacks)

The fourth-quarter guide of $1.43 compares with $1.23 a year ago. Both guidance figures sit above consensus.

Line chart of PayPal's daily share price from July to October, ahead of third-quarter results
PayPal daily close, 20 July to 26 October 2026, USD. Q3 results came out today, after the last point plotted.

Chief executive Enrique Lores tied the quarter to the company’s strategy.

We are beginning to see our strategy translate into our financial results, with strong contributions from our key growth areas and increasing diversification,

Enrique Lores, chief executive, PayPal

Total payment volume rose 6.3% to $487.1bn, slightly under the $489.7bn Zacks consensus. It was the fourth adjusted EPS beat in the last five quarters.

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