PayPal (PYPL) Q1 2026 earnings summary

Executive summary

• Net revenues for Q1 2026 were $8.35 billion, up 7% year-over-year, driven by 11% growth in total payment volume (TPV) and strong contributions from Venmo, branded checkout, and PSP segments.

• New CEO outlined a transformation plan focused on accelerating growth, improving profitability, modernizing technology, and organizational simplification, with a renewed emphasis on consumer engagement.

• Company reorganized into three core businesses: checkout, consumer financial services (including Venmo), and payment services (including crypto and Braintree), each with clear leadership and accountability.

• Adjusted free cash flow rose 25% to $1.72 billion, supporting $1.5 billion in share repurchases and $130 million in dividends.

• Active accounts reached 439 million, up 1% year-over-year, driven by Venmo engagement.

Financial highlights

• Q1 total payment volume (TPV) grew 11% year-over-year to $463.96 billion.

• Revenue increased 7% year-over-year to $8.35 billion; transaction revenue was $7.5 billion.

• Non-GAAP EPS rose 1% to $1.34; GAAP EPS fell 6% to $1.21.

• Transaction margin dollars increased 3% to $3.8 billion; adjusted free cash flow was $1.72 billion, up 25% year-over-year.

• Returned $1.5 billion to shareholders via share repurchases in the quarter.

Outlook and guidance

• Full-year 2026 guidance reiterated: transaction margin dollars expected to be flat or slightly down, non-GAAP EPS ranging from down low single digits to slightly positive.

• Q2 2026 guidance: low single-digit revenue growth, 3% decline in transaction margin dollars, non-GAAP EPS to decline by high single digits.

• $6 billion in share repurchases and at least $6 billion in adjusted free cash flow expected for the year.