PayPal raises earnings outlook despite revenue miss

PayPal Holdings reported third-quarter results that showed a mix of exceeding profitability expectations while missing revenue targets. The company reported revenue of $8.58 billion, a 2% year-over-year increase that fell short of the $8.71 billion expected by analysts. However, adjusted earnings per share (EPS) reached $1.45, surpassing the consensus estimate of $1.31.

Total payment volume grew 6% to $487.1 billion, and the company processed 6.8 billion transactions, a 7% increase. While U.S. revenue rose 5% to $5 billion, international revenue saw a 2% decline. Despite the revenue slowdown, PayPal raised its full-year 2026 adjusted EPS guidance to approximately $5.60 per share, up from previous estimates of $5.38.

The company also announced $1.5 billion in share repurchases during the quarter and a $0.14 dividend. CEO Enrique Lores noted that the company is shifting its focus toward the consumer side to drive growth following a period of reorganization.