PayPal Q2 revenue beats on strong momentum in Venmo and Braintree

Overview

• Payments platform's Q2 revenue rose 5%, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company repurchased $1.5 bln of shares in Q2

Outlook

• PayPal raises FY26 non-GAAP EPS guidance to ~$5.38

• Company reaffirms FY26 GAAP EPS guidance for mid-single digit decline

• PayPal expects 3Q26 GAAP and non-GAAP EPS to decline low-single digit percent

Result Drivers

• BRANDED CHECKOUT STABILIZATION - Co said branded checkout business has further stabilized, supporting overall performance

• VENMO AND BRAINTREE MOMENTUM - Co cited strong momentum in Venmo and Braintree as contributing to Q2 results

• BUSINESS MODEL DIVERSIFICATION - Co said it is diversifying through financial services as part of its transformation plan

Key Details

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 $50.00, about 10.8% below its July 27 closing price of $56.07

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• July 28 - PayPal presses on with turnaround in pivotal quarter as sale questions linger

• July 28 - India's Pine Labs profit jumps four-fold as digital payments adoption increases

• July 28 - TransUnion beats Q2 revenue estimates, raises 2026 revenue growth outlook

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.)