PayPal tops Q3 adjusted EPS estimates, raises FY forecast

PayPal Holdings

Today 11:14

Overview
Payments platform's Q3 revenue grew 2% but missed analyst expectations
Adjusted EPS rose 8% and beat analyst expectations
Company repurchased $1.5 bln in shares during Q3

Outlook
PayPal raises full-year non-GAAP EPS guidance to ~$5.60 from ~$5.38
Company reaffirms full-year GAAP EPS guidance of ~$5.07
PayPal expects Q4 2026 non-GAAP EPS of ~$1.43

Result Drivers
KEY GROWTH AREAS - Co said strong contributions from key growth areas and increased diversification helped drive results
TRANSFORMATION PROGRESS - Co attributed results to progress in its multi-year transformation strategy
PAYMENT VOLUME - Co said higher total payment volume contributed to Q3 results

Company press release: Full Story

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$8.60 bln
$8.71 bln (33 Analysts)
Q3 Adjusted EPS
Beat
$1.45
$1.31 (35 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 33 "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 $56.00, about 1.8% above its October 26 closing price of $54.99
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
Oct 27 - PayPal raises 2026 profit forecast as turnaround gains traction
Oct 26 - Trading platform Plus500 Q3 revenue rises on customer growth
Oct 26 - Singapore's IFAST Q3 revenue rises on ePension growth

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.)