PayPal Posts Slowest Revenue Growth of 2026 but Lifts Earnings Outlook

what happened

Stocktwits reported, citing Koyfin data, that PayPal's third-quarter revenue rose 2% to $8.58 billion, below analysts' estimate of $8.71 billion. Adjusted earnings came in at $1.45 per share against the Koyfin estimate of $1.31. Restructuring and other charges climbed to $255 million from $69 million a year earlier, while adjusted net income fell 3% to $1.25 billion.

PayPal spent $1.5 billion buying back about 28 million shares during the quarter and repurchased roughly 117 million shares over the past 12 months for $6 billion. Diluted shares dropped to 858 million from 960 million. U.S. revenue grew 5% to $5 billion, overseas revenue declined 2% to $3.58 billion, and active accounts rose only 0.6% to 440 million.

The company reaffirmed its GAAP outlook of about $5.07 per share, in line with the Koyfin consensus, which points to a 6.3% decline from 2025. For the fourth quarter, PayPal expects adjusted earnings of roughly $1.43 per share, versus $1.23 a year earlier. The board also declared a dividend of $0.14 per share.

why it matters

Much of the earnings gain came from a smaller share count, so buybacks did much of the work. Free cash flow fell 17% to $1.43 billion and interest earned on customer balances dropped to $289 million, which give investors reasons for caution. The shares were down more than 3% in morning trading.

market impact

PayPal shares: weak revenue and cash flow weigh, while raised profit outlook and buybacks support

• ↔PayPal shares mixed — weak revenue and lower free cash flow pressure the stock, while buybacks and higher earnings support it

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