PayPal performed better than analysts had expected in the first quarter of 2026, supported by persistently strong consumer spending. The payments company benefited in particular from spending by financially stronger households, which continue to consume despite inflation and geopolitical uncertainties.
Revenue came in at $8.35 billion, an increase of 7% compared to a year earlier. This put PayPal above the market expectation of $8.05 billion. Adjusted earnings per share were $1.34, also higher than the expected $1.27.
Total payment volume also grew solidly, rising to around $464 billion. The checkout division – PayPal or Venmo – recorded growth of about 2%.
Visa, Mastercard and American Express had earlier also reported strong quarterly figures, pointing to robust consumer spending.
At the same time, PayPal remains under pressure from tough competition from tech companies such as Apple and Google. Since its peak in 2021, the share price has fallen sharply.
PayPal is considering carving out its US-only payment service Venmo as a standalone business unit. With this move, the company wants to provide more insight into Venmo’s performance and assess its activities more clearly on a standalone basis. A separate structure could also make it easier to make strategic choices, such as a possible sale of (parts of) the division.
The reorganisation is part of a broader restructuring within PayPal, which wants to streamline its operations and refocus on growth. In doing so, various business units will be more clearly separated from one another.
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