10-QPeriod: Q2 FY2026

PayPal Holdings, Inc. Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 28, 2026For Securities:PYPL

Summary

PayPal Holdings, Inc.'s second-quarter 2026 results show a 5% increase in net revenues to $8.7 billion compared to the prior year, driven by a 10% growth in Total Payment Volume (TPV). However, net income decreased by 12% to $1.1 billion, primarily due to higher operating expenses and a notable decline in 'Other income (expense), net', largely influenced by losses on strategic investments. The company is actively managing its operational costs, announcing a strategic reorganization in April 2026 aimed at simplifying its structure and driving efficiency, projecting at least $1.5 billion in gross annualized run-rate savings over the next two to three years. From a balance sheet perspective, total assets grew to $82.7 billion. The company continued its robust share repurchase program, buying back approximately $3.0 billion in common stock during the first half of 2026, with $10.9 billion remaining authorized. PayPal also maintained its investment-grade credit rating from major agencies. Despite the increase in net revenue, the decline in profitability and the ongoing strategic reorganization signal areas investors should closely monitor for future performance.

Key Highlights

  • 1Net revenues increased by 5% to $8.7 billion for the three months ended June 30, 2026, compared to the prior year, driven by a 10% growth in Total Payment Volume (TPV).
  • 2Net income decreased by 12% to $1.1 billion for the three months ended June 30, 2026, compared to the prior year, impacted by higher operating expenses and losses on strategic investments.
  • 3The company announced a strategic reorganization in April 2026, expecting at least $1.5 billion in gross annualized run-rate savings over the next two to three years.
  • 4Total assets increased to $82.7 billion as of June 30, 2026, compared to $80.2 billion as of December 31, 2025.
  • 5PayPal repurchased approximately $3.0 billion of common stock during the six months ended June 30, 2026, with $10.9 billion remaining available under its repurchase program.
  • 6The company maintained its investment-grade credit rating from Standard and Poor's, Fitch Ratings, and Moody's Investors Services.
  • 7Transaction and credit losses decreased by 17% to $397 million for the three months ended June 30, 2026, compared to the prior year, attributed to lower fraud losses and effective risk mitigation strategies.

Frequently Asked Questions

Net revenues increased by 5% to $8.7 billion, primarily driven by a 10% growth in Total Payment Volume (TPV) and a favorable impact from hedging activities. Growth was also supported by increases in revenue from Braintree and Venmo products and services.

Net income decreased by 12% to $1.1 billion. This was mainly due to a 7% increase in operating expenses, particularly transaction expenses, and a significant decline in 'Other income (expense), net', which was largely attributable to net losses and impairments on strategic investments in the current period compared to net gains in the prior period.

PayPal announced a strategic reorganization aimed at simplifying its business, accelerating growth priorities, and driving innovation. This initiative is expected to deliver at least $1.5 billion in gross annualized run-rate savings over the next two to three years. The company also anticipates a transformation related charge between $120 million and $140 million in the second half of 2026 for the first phase of this program.

PayPal continued its active share repurchase program, buying back approximately $3.0 billion of its common stock in the first half of 2026. As of June 30, 2026, approximately $10.9 billion remained available for future repurchases. The company also declared and paid two cash dividends of $0.14 per share, totaling approximately $255 million in the first half of 2026.