PayPal raises full-year profit forecast after stronger second quarter
In the second quarter of 2026, PayPal achieved higher revenue and a higher payment volume. On the basis of the results, the fintech company is raising its profit forecast for the whole of 2026. According to chief executive Enrique Lores, the company’s transformation is starting to deliver visible results.
Revenue came in at $8.68 billion, an increase of 5% compared with a year earlier. Total payment volume grew by 10% to $486.4 billion, while the number of payment transactions rose by 8% to $6.8 billion. The number of active accounts remained virtually stable at 439 million.
Adjusted earnings per share came to $1.38, a decrease of 1% year-on-year, but still above analysts’ expectations. Operating cash flow rose to nearly $2 billion and free cash flow came in at $1.8 billion.
For the whole of 2026, PayPal now expects adjusted earnings per share of around $5.38. That is higher than the previous forecast of about $5.31. The company is also counting on a higher transaction margin than previously envisaged.
Since the beginning of this year, PayPal has been working on a reorganisation focused on growing its payment services PayPal Checkout, Venmo and Braintree, supplemented with financial services. In addition, the company wants to further reduce costs and make greater use of artificial intelligence.
Payments company Stripe has recently made a bid for PayPal together with investment firm Advent International. The two parties are jointly offering $60.50 per share, valuing the American payment platform at more than $53 billion.
If the acquisition goes ahead, Stripe and Advent will each acquire a 50% stake in PayPal. The intention is to continue the company as a single whole and not to break it up.
PayPal has been struggling for some time with slowing growth and tough competition from, among others, Apple Pay and Google Pay. As a result, its market value has fallen sharply in recent years.
Emerce
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