PayPal Holdings, Inc. Q3 2026 Earnings Recap

PayPal delivered a mixed third quarter, with transaction margin dollars up approximately 2% and non-GAAP EPS up 8%. The stock rose 2.0% after earnings, a modest move that does not signal a decisive market verdict.

Key Takeaways

• Transaction margin dollars grew approximately 2%; non-GAAP EPS increased 8%. PayPal generated $2 billion of adjusted free cash flow and returned more than $1.6 billion through buybacks and dividends.
• Branded checkout TPV growth remained in the 1%–2% range for the fourth consecutive quarter, while management said it is still working to improve checkout performance.
• Venmo and Braintree each posted double-digit TPV growth. Venmo debit reached 6.7 million monthly active accounts, up more than 55%, and PSP volume grew 8%.
• Financial services represented more than 20% of 2026 transaction margin dollars and were growing at a double-digit rate; value-added services attachment in PSP rose to 6% from 5% a year earlier.
• PayPal has reduced headcount by more than 2,000 and remains on track for at least $1.5 billion in gross run-rate cost savings over two to three years, including more than $700 million exiting the fourth quarter.