PayPal Q1 revenue rises 7%, beats estimates on payment volume growth

PayPal Holdings

05/05/2026 12:12

Overview

US payments platform's Q1 revenue rose 7%, beating analyst expectations

Adjusted EPS for Q1 increased 1%, beating analyst expectations

Company repurchased $1.5 bln of shares in Q1

Outlook

PayPal reiterates FY26 guidance amid a complex and dynamic operating environment

Company expects 2Q26 GAAP EPS to decline mid-single digits from prior year

PayPal sees FY26 non-GAAP EPS declining low-single digits to slightly positive versus prior year

Result Drivers

PAYMENT VOLUME GROWTH - Q1 total payment volume rose 11% year-over-year, supporting revenue growth

COST STRUCTURE FOCUS - CEO said company is taking steps to simplify organization and focus investments to improve growth and cost structure

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$8.40 bln
$8.05 bln (32 Analysts)
Q1 Adjusted EPS
Beat
$1.34
$1.27 (33 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 32 "hold" and 4 "sell" or "strong sell"

The average consensus recommendation for the business support services peer group is "buy."

Wall Street's median 12-month price target for PayPal Holdings Inc is $48.00, about 4.7% below its May 4 closing price of $50.39

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)