PYPL · PayPal Holdings, Inc.

PayPal's first quarter 2026 results reflect a solid start to the year, with net revenues growing 7% year-over-year to $8.4 billion, driven by 11% growth in total payment volume to $464.0 billion. However, GAAP operating income declined 3% to $1.5 billion, and GAAP operating margin contracted 182 basis points to 17.8%, primarily due to higher costs and investments. Non-GAAP operating income also fell 5% to $1.5 billion, with non-GAAP operating margin down 229 basis points to 18.4%. GAAP EPS decreased 6% to $1.21, impacted by a ~$0.08 negative effect from strategic investments and crypto assets, while non-GAAP EPS edged up 1% to $1.34. Transaction margin dollars grew 3% to $3.8 billion, or 3% excluding interest on customer balances. Active accounts remained nearly flat at 439 million, with a slight sequential decline of 0.2 million. The company generated $1.1 billion in operating cash flow and $0.9 billion in free cash flow, with adjusted free cash flow of $1.7 billion. PayPal returned $1.5 billion to shareholders through share repurchases in the quarter. Management, under new CEO Enrique Lores, emphasized a focus on sharpening strategy, simplifying the organization, and improving growth and cost structure. For the full year 2026, PayPal reiterated guidance for GAAP EPS mid-single digit decline and non-GAAP EPS low-single digit decline to slightly positive, reflecting a complex and dynamic operating environment. The board declared a quarterly dividend of $0.14 per share, payable June 25, 2026.