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PayPal Holdings, Inc. (PYPL - Free Report) is slated to report third-quarter 2026 results on Oct. 27, before the market opens. The company’s quarterly results are likely to display a year-over-year increase in revenues, while earnings per share (EPS) is expected to decline.
In the last reported quarter, this payment company reported EPS of $1.38, outpacing the Zacks Consensus Estimate of $1.28. The quarter benefited from solid growth in total payment volume (TPV), along with continued momentum in Venmo and Braintree.
Over the preceding four quarters, PYPL’s EPS surpassed the Zacks Consensus Estimate thrice and missed in the remaining period, with the average beat being 5.32%. This is depicted in the graph below:
PayPal’s third-quarter results are expected to reflect continued progress in its transformation strategy, with a focus on expanding merchant solutions and deepening customer engagement. Revenue growth is expected to be modest in the quarter, with management guiding to low single-digit currency-neutral revenue growth. It also expects transaction margin dollars to grow slightly.
In the quarter under consideration, PYPL is expected to have benefited from an improving Total Payment Volume (TPV), supported by continued growth momentum in Braintree and Venmo.
Despite these positives, PayPal is likely to have faced intense competition from other digital payment companies. Broader macroeconomic uncertainties and pressure on consumer discretionary spending are also likely to affect its third-quarter results.
PayPal's significant international presence exposes its business to foreign exchange fluctuations. Changes in the value of the U.S. dollar against foreign currencies are likely to influence the company’s to-be-reported results.
PYPL's Q3 Projections
The Zacks Consensus Estimate for PayPal’s transaction revenues is pegged at $7.82 billion, which suggests a 4% increase from the year-ago quarter.
The consensus mark for TPV is pegged at $489.707 billion, indicating 6.9% year-over-year growth. PayPal’s active accounts are likely to have reached 439.9 million, which denotes an increase from the year-ago value of 438 million.
The consensus mark for the number of payment transactions is pinned at 6.584 billion, which is above the company’s reported figure of 6.331 billion in the same quarter last year.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $8.70 billion, indicating an increase of 3.36% from the year-ago quarter’s reported figure.
However, its consensus mark for revenues from other value-added services is pegged at $885.5 million for the third quarter, down 1.1% from the year-ago period.
PYPL’s activities in the to-be-reported quarter were inadequate in garnering analysts’ confidence. The Zacks Consensus Estimate for third-quarter EPS has declined a cent to $1.31 over the past month. It also suggests a 2.2% fall from the year-ago quarter’s tally. Management expects non-GAAP EPS to decline at a low-single-digit rate in the third quarter of 2026.
What Our Quantitative Model Predicts About PYPL
Our proven model does not conclusively predict an EPS beat for PYPL for this quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
PayPal has an Earnings ESP of -3.18% and currently carries a Zacks Rank of 3. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two other stocks from the Zacks Financial Transaction Services sector — Visa (V - Free Report) and Mastercard (MA - Free Report) — you may want to consider, as our model shows that these also have the right combination of elements to report an EPS beat this quarter.
Visa is slated to report quarterly numbers on Oct. 27, 2026. V has an Earnings ESP of +0.66% and a Zacks Rank of #3 at present.
View the Zacks #1 Rank List
Image: Bigstock
PayPal Gears Up to Report Q3 Earnings: What's in the Cards?
Key Takeaways
PayPal Holdings, Inc. (PYPL - Free Report) is slated to report third-quarter 2026 results on Oct. 27, before the market opens. The company’s quarterly results are likely to display a year-over-year increase in revenues, while earnings per share (EPS) is expected to decline.
In the last reported quarter, this payment company reported EPS of $1.38, outpacing the Zacks Consensus Estimate of $1.28. The quarter benefited from solid growth in total payment volume (TPV), along with continued momentum in Venmo and Braintree.
Over the preceding four quarters, PYPL’s EPS surpassed the Zacks Consensus Estimate thrice and missed in the remaining period, with the average beat being 5.32%. This is depicted in the graph below:
PayPal Holdings, Inc. Price and EPS Surprise
PayPal Holdings, Inc. price-eps-surprise | PayPal Holdings, Inc. Quote
Factors Likely to Shape PayPal’s Q3 Results
PayPal’s third-quarter results are expected to reflect continued progress in its transformation strategy, with a focus on expanding merchant solutions and deepening customer engagement. Revenue growth is expected to be modest in the quarter, with management guiding to low single-digit currency-neutral revenue growth. It also expects transaction margin dollars to grow slightly.
In the quarter under consideration, PYPL is expected to have benefited from an improving Total Payment Volume (TPV), supported by continued growth momentum in Braintree and Venmo.
Despite these positives, PayPal is likely to have faced intense competition from other digital payment companies. Broader macroeconomic uncertainties and pressure on consumer discretionary spending are also likely to affect its third-quarter results.
PayPal's significant international presence exposes its business to foreign exchange fluctuations. Changes in the value of the U.S. dollar against foreign currencies are likely to influence the company’s to-be-reported results.
PYPL's Q3 Projections
The Zacks Consensus Estimate for PayPal’s transaction revenues is pegged at $7.82 billion, which suggests a 4% increase from the year-ago quarter.
The consensus mark for TPV is pegged at $489.707 billion, indicating 6.9% year-over-year growth. PayPal’s active accounts are likely to have reached 439.9 million, which denotes an increase from the year-ago value of 438 million.
The consensus mark for the number of payment transactions is pinned at 6.584 billion, which is above the company’s reported figure of 6.331 billion in the same quarter last year.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $8.70 billion, indicating an increase of 3.36% from the year-ago quarter’s reported figure.
However, its consensus mark for revenues from other value-added services is pegged at $885.5 million for the third quarter, down 1.1% from the year-ago period.
PYPL’s activities in the to-be-reported quarter were inadequate in garnering analysts’ confidence. The Zacks Consensus Estimate for third-quarter EPS has declined a cent to $1.31 over the past month. It also suggests a 2.2% fall from the year-ago quarter’s tally. Management expects non-GAAP EPS to decline at a low-single-digit rate in the third quarter of 2026.
What Our Quantitative Model Predicts About PYPL
Our proven model does not conclusively predict an EPS beat for PYPL for this quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
PayPal has an Earnings ESP of -3.18% and currently carries a Zacks Rank of 3. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two other stocks from the Zacks Financial Transaction Services sector — Visa (V - Free Report) and Mastercard (MA - Free Report) — you may want to consider, as our model shows that these also have the right combination of elements to report an EPS beat this quarter.
Visa is slated to report quarterly numbers on Oct. 27, 2026. V has an Earnings ESP of +0.66% and a Zacks Rank of #3 at present.
Mastercard is slated to report quarterly numbers on Oct. 29, 2026. MA has an Earnings ESP of +0.11% and a Zacks Rank of #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.