PayPal (PYPL) investor relations material

Executive summary

• Net revenues for Q2 2026 increased 5% year-over-year to $8.68 billion, driven by 10% growth in total payment volume (TPV) and favorable hedging impacts.

• Branded checkout TPV stabilized at 2% growth, while Venmo and Braintree drove diversification and strong momentum, with Venmo Debit Card MAAs up over 50%.

• Transformation plan execution led to raised full-year non-GAAP guidance for transaction margin dollars and EPS, reflecting confidence in ongoing transformation and execution.

• Adjusted free cash flow reached $1.8 billion, with $1.5B–$1.6B returned to shareholders via buybacks and dividends.

• Multi-year transformation underway, focusing on diversification beyond checkout, technology modernization, and cost structure improvement.

Financial highlights

• Total payment volume (TPV) reached $486.4 billion, up 10% year-over-year (9% FXN).

• Revenue grew 5% to $8.68 billion; transaction margin dollars rose 1% to $3.9 billion, up 3% excluding interest on customer balances.

• Non-GAAP EPS declined 1% to $1.38; GAAP EPS fell 3% to $1.25; non-GAAP operating income down 8% to $1.5 billion.

• Adjusted free cash flow was $1.8 billion; cash, cash equivalents, and investments totaled $15.3 billion; debt at $13.4 billion as of June 30, 2026.

• Operating margin contracted to 16.4% GAAP and 17.4% non-GAAP.

Outlook and guidance

• Raised full-year guidance: transaction margin dollars to ~$15.6B ($14.5B ex-interest), non-GAAP EPS to $5.38.

• Adjusted free cash flow expected at $6B+; $6B in share repurchases planned for the year.

• 3Q'26 and FY'26 GAAP and non-GAAP EPS expected to see low- to mid-single digit declines year-over-year.

• Transformation-related charge of $120M–$140M anticipated in H2 2026.

• Additional details on savings realization and program structure to be provided in future periods.