The Zhitong Finance App learned that PayPal (PYPL.US) released financial results for the third quarter of 2026 before the US stock market on Tuesday. According to the data, the company's revenue for the quarter was US$8.6 billion, up 2.4% year on year, below market expectations; non-GAAP earnings per share were US$1.45, exceeding market expectations. The company raised its full-year adjusted profit guidance, signaling progress in business transformation.
Transaction fees for the quarter were US$4.248 billion, up from US$4,063 billion in the same period last year; transaction and credit losses were US$386 million, which is significantly narrower than US$483 million in the same period last year, indicating an improvement in credit quality.
Business progress and strategic priorities
PayPal is undergoing a transformation process led by CEO Enrique Lores. The company previously split its organizational structure into three business segments — checkout processing, Venmo, and consumer finance services — to clarify accountability and accelerate decision-making. Management is shifting its focus from merchant side strategies to increasing consumer engagement, with a particular focus on high-value customer groups to enhance user stickiness through tools such as Buy Now, Pay Later (BNPL), Venmo Payments, and loyalty programs.
Cost-saving plans are progressing simultaneously. PayPal aims to achieve at least $1.5 billion in gross operating rate cost savings over the next two to three years, and the savings will be reinvested in high-priority growth areas such as financial services, Venmo, and Braintree.
Guidelines for increasing full-year profit
PayPal raised its 2026 full-year non-GAAP earnings per share guide to $5.60, higher than market expectations of $5.39; at the same time, it also gave the fourth quarter EPS guidance of $1.43, which was also higher than the market's forecast of $1.35.
Additionally, PayPal's board of directors announced a cash dividend of $0.14 per share.
As of press time, the stock was down 1.4% in the premarket.