PayPal Shares Soar 13.9% After Q4 EPS, Revenue Miss and Cautious 2026 Outlook
PayPal shares have climbed 13.9% since its Q4 earnings report despite non-GAAP EPS of $1.23 missing estimates by $0.06 and net revenues of $8.68 billion falling $90 million short. For 2026, PayPal projects EPS to decline low-single digits and anticipates adjusted free cash flow above $6 billion.
1. Share Performance Trends
Over the month since its fiscal Q4 report, PayPal’s stock has rallied 13.9%, outpacing the S&P 500 index, reflecting optimism from investors despite mixed results.
2. Q4 Financial Results
PayPal delivered non-GAAP EPS of $1.23 in Q4, missing the $1.29 consensus by $0.06, and net revenues of $8.68 billion, $90 million shy of projections; TPV grew 8.5% year-over-year to $475.14 billion.
3. Balance Sheet and Cash Flow
As of Dec. 31, 2025, PayPal held $14.8 billion in cash and equivalents versus $10 billion in long-term debt, generated $2.4 billion in operating cash flow and returned $1.5 billion through share repurchases.
4. 2026 Guidance and Analyst Revisions
For full-year 2026, the company expects non-GAAP EPS to decline low-single digits and adjusted free cash flow to exceed $6 billion; consensus estimates have fallen 7.6% in the past month.