PayPal raises 2026 profit forecast as turnaround gains traction
PYPL•PayPal raised its 2026 adjusted profit forecast to about $5.60 per share, from an earlier forecast, after third-quarter adjusted profit beat estimates at $1.45 per share. Revenue was $8.6 billion, and the company expects fourth-quarter adjusted profit of $1.43 per share.
1. Higher profit outlook
PayPal raised its full-year 2026 adjusted profit forecast to about $5.60 per share, above analysts’ $5.38 estimate. Third-quarter adjusted profit was $1.45 per share, compared with estimates of $1.31, while revenue of $8.6 billion was below the $8.7 billion estimate.
2. Costs and margins
The company said it was on track to achieve $700 million in gross run-rate cost savings by the end of 2026, following cuts to more than 2,000 jobs and a reduction of over 25% in managerial roles. PayPal aims for at least $1.5 billion in gross run-rate savings over the next two to three years; third-quarter adjusted operating margin expanded 16 basis points to 18.8%.
3. Payments and holiday outlook
Third-quarter total payment volume rose 7% on a foreign exchange-neutral basis to $487.1 billion. PayPal expects fourth-quarter adjusted profit of $1.43 per share, above analysts’ $1.35 estimate and the year-earlier $1.23.
