PayPal reported Q1 2026 (January–March) revenue of $8.4 billion, beating market expectations, according to an SEC 8-K filing disclosed on May 5.
Q1 2026 Results at a Glance
Revenue grew 7% year-over-year. While payment transaction volume increased, GAAP net income declined due to investment asset valuation losses.
- Revenue: $8.4 billion, +7% YoY
- Diluted EPS (GAAP): $1.21 vs. $1.29 prior year, -6% YoY
- Diluted EPS (non-GAAP/adjusted): $1.34 vs. $1.33 prior year, +1% YoY
- Operating Income (GAAP): $1.5 billion, -3% YoY
- Operating Income (non-GAAP/adjusted): $1.54 billion, -5% YoY
- Total Payment Volume (TPV): $464 billion, +11% YoY
- Payment Transactions: 6.5 billion, +7% YoY
- Active Consumer Accounts: 439 million, +1% YoY
- Free Cash Flow: $900 million
- Share Repurchases: Approximately 34 million shares, $1.5 billion program
FY 2026 Guidance and Q2 Outlook
PayPal maintained full-year 2026 guidance unchanged. The company expects full-year GAAP diluted EPS to decline mid-single digits and adjusted EPS to range from slight decline to slight growth. For Q2 2026, GAAP EPS is projected to decline mid-single digits, while adjusted EPS is expected to decline approximately 9%. New Chief Executive Officer Enrique Lores stated the company will "clarify strategy and simplify the organization to accelerate growth." The Board approved a cash dividend of $0.14 per share, payable June 25, 2026.
Market Reaction
PayPal's stock rebounded following the earnings announcement. Reuters and other wire services noted that consumer spending held up better than expected. Seeking Alpha noted the company beat lowered consensus expectations from Q4. While some analysts had previously warned of a potential 20% stock decline, sentiment shifted after the report. However, GAAP net income was reduced by approximately $0.08 per share in losses from strategic investment holdings and digital asset valuations.
This article was automatically generated based on the SEC 8-K filing and third-party reporting, with the aim of delivering key data quickly following announcement. We recommend reviewing the official company filing before making trading decisions.
