PayPal Q1 net income down 14% as revenues rise 7% and 20% staff cut
PYPL•PayPal's Q1 GAAP net income fell 14% to $1.11bn while GAAP net revenues rose 7% to $8.4bn. The company reported GAAP EPS of $1.21 and TPV growth of 11% to $464bn as new CEO outlines plans to cut 20% of staff and save $1.5bn by reorganizing operations.
1. Q1 Financial Results
PayPal reported GAAP net income of $1.11bn in Q1 2026, down 14% from $1.29bn a year earlier, while GAAP net revenues increased 7% to $8.4bn. GAAP EPS fell 6% to $1.21, and GAAP operating income declined 3% to $1.5bn, with non-GAAP operating income down 5% to $1.5bn.
2. TPV and Transaction Growth
Total payment volume reached $464bn, an 11% year-on-year increase, as payment transactions rose 7% to 6.5 billion, reflecting sustained consumer adoption and merchant processing volumes.
3. Cost-Saving Plans and Workforce Reductions
New CEO Enrique Lores announced a plan to cut approximately 20% of PayPal's workforce—over 4,500 roles—to achieve at least $1.5bn in savings over the next two to three years, part of efforts to improve the cost structure.
4. Organizational Restructuring and Venmo
PayPal revealed an organizational restructuring that elevates Venmo into its own business unit within a new Consumer Financial Services & Venmo division to sharpen strategic focus and drive long-term growth.
