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PayPal’s third-quarter 2026 results showed stronger payment activity and per-share earnings but slower-than-expected revenue growth. Revenue increased 2% year over year to $8.58 billion, below the $8.71 billion analyst consensus reported by Investing.com. Total payment volume (TPV) climbed 6.3% to $487.14 billion, adjusted earnings per share (EPS) reached $1.45 versus a $1.31 consensus, and the company raised its full-year 2026 adjusted EPS outlook to approximately $5.60, above the $5.39 consensus.
The results, released October 27, 2026, present a mixed picture: transaction scale and profitability improved, while international revenue and value-added services weakened. PayPal shares were reported about 0.3% lower in premarket trading after the release.
What were PayPal’s Q3 2026 earnings?
PayPal reported $8.58 billion in third-quarter revenue for the period ended September 30, 2026. That was 2% higher than a year earlier but missed the $8.71 billion analyst estimate. TPV rose faster than revenue, increasing 6.3% to $487.14 billion.
| Measure | Q3 2026 result | Year-over-year or comparison |
|---|---|---|
| Revenue | $8.58 billion | Up 2%; below $8.71 billion consensus |
| Total payment volume | $487.14 billion | Up 6.3% |
| Adjusted EPS | $1.45 | Above $1.31 consensus |
| Payment transactions | 6.80 billion | Up 7.3% |
| Active customer accounts | 440 million | Up 0.5% |
These figures, including consensus comparisons, were reported by Investing.com in 2026. The gap between TPV growth and revenue growth indicates that more payment volume did not translate into an equivalent increase in reported revenue.
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Why did PayPal revenue miss estimates in Q3 2026?
Revenue missed because growth was uneven across PayPal’s businesses and regions. Transaction revenue increased 2.5% to $7.71 billion, but revenue from other value-added services fell 2.5% to $873 million. International revenue also declined, offsetting stronger performance in the United States.
U.S. growth offset international weakness
U.S. net revenue rose 5.2% to $5.00 billion. International revenue fell 2.2% to $3.58 billion. Because the U.S. business expanded while the international business contracted, consolidated revenue grew only modestly despite higher payment volume.
Value-added-services revenue declined
Other value-added-services revenue decreased to $873 million, down 2.5%. This decline reduced the benefit from the 2.5% increase in transaction revenue and contributed directly to the revenue shortfall against consensus.
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What drove PayPal’s Q3 EPS beat?
Adjusted EPS was $1.45, beating the $1.31 consensus. Operating performance helped: transaction-margin dollars increased 2% to $3.95 billion, adjusted operating income rose 2.9% to $1.61 billion, and the adjusted operating margin widened to 18.8% from 18.6%.
Investing.com’s coverage also cited a lower share count as a factor supporting adjusted EPS. That means earnings per share benefited from both improved operating income and the number of shares over which earnings were spread, even though revenue growth remained restrained.
How did PayPal’s payment activity perform?
Underlying payment activity was stronger than the top-line revenue result. TPV reached $487.14 billion, up 6.3%, while payment transactions increased 7.3% to 6.80 billion. Active customer accounts grew 0.5% to 440 million.
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- TPV: Measures the dollar value processed through PayPal’s payment platforms.
- Transactions: Increased faster than TPV, implying a higher number of payments but a lower average value per transaction than if both measures had grown at the same rate.
- Active accounts: Grew slowly relative to transaction activity, suggesting existing customers generated much of the additional payment frequency.
Did PayPal raise its 2026 adjusted EPS guidance?
Yes. PayPal raised full-year 2026 adjusted EPS guidance from approximately $5.38 to approximately $5.60. The new outlook is above the $5.39 analyst consensus reported by Investing.com.
| Guidance item | Earlier outlook | Updated outlook |
|---|---|---|
| Full-year adjusted EPS | Approximately $5.38 | Approximately $5.60 |
| Full-year transaction-margin dollars | About $15.6 billion | About $15.7 billion |
| Q4 adjusted EPS | Not previously stated in the cited coverage | Approximately $1.43 |
The transaction-margin-dollar increase is a narrower raise than the EPS change, indicating that the full-year per-share outlook reflects more than gross payment-volume expansion alone. Management’s guidance is non-GAAP, so it should not be treated as a forecast of GAAP net income.
What did PayPal management say?
PayPal chief executive officer Enrique Lores said, “I’m pleased with our third-quarter performance and the momentum we are seeing across the business, and we are raising our full-year non-GAAP guidance for transaction margin dollars and EPS.” The statement emphasizes the higher guidance and operating momentum while the reported revenue miss and international decline remain important counterpoints.
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How did the market react to PayPal’s earnings?
PayPal shares were reported about 0.3% lower in premarket trading after the release. The muted-to-negative initial move reflects the tension in the report: investors received an EPS beat, stronger TPV and higher guidance, but also a revenue miss and declining international revenue. Premarket trading is an early indication, not a full-day or multi-session assessment of the earnings report.
What should investors watch after Q3?
- Revenue conversion: Whether revenue growth begins to catch up with TPV growth.
- International performance: Whether the 2.2% decline reverses or becomes a continuing drag.
- Value-added services: Whether the 2.5% decline stabilizes.
- Margin dollars: Whether transaction-margin dollars can reach the approximately $15.7 billion full-year target.
- Customer activity: Whether account growth accelerates beyond 0.5% while transactions continue to expand.
- Q4 delivery: Management’s approximately $1.43 adjusted EPS guidance provides the next near-term benchmark.
For comparisons with other payment companies or earlier quarters, the most informative measures are revenue growth versus TPV growth, adjusted EPS versus consensus, transaction-margin-dollar growth, U.S. versus international results, transaction and active-account trends, and the direction of full-year guidance.
Frequently Asked Questions
When did PayPal release its Q3 2026 results?
PayPal announced results on October 27, 2026, covering the three months ended September 30, 2026.
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What is the difference between PayPal TPV and revenue?
TPV is the total dollar value of payments processed, while revenue is the amount PayPal records from transaction fees and other services. TPV can therefore grow faster or slower than revenue depending on pricing, payment mix and service revenue.
What is PayPal’s Q4 2026 adjusted EPS outlook?
Management guided to approximately $1.43 in adjusted EPS for the fourth quarter of 2026.
How many active PayPal customer accounts were reported in Q3 2026?
PayPal reported 440 million active customer accounts in the quarter, a 0.5% year-over-year increase.
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