PayPal beats estimates and raises guidance as turnaround takes hold

PayPal reported second-quarter adjusted earnings of $1.38 per share on July 28, ahead of the $1.28 analysts had expected, and raised its full-year profit guidance, according to the company’s results release. Revenue rose about 5 percent from a year earlier to $8.68 billion, above the roughly $8.47 billion analysts had forecast.

The company now expects full-year adjusted earnings of $5.38 per share, up from its earlier guidance and compared with $5.31 in 2025, having previously guided for a low-single-digit decline to slightly positive growth, according to Quartz. PayPal shares rose about 4.5 percent at the market open, TipRanks reported.

“I’m encouraged by the progress we made this quarter,” president and chief executive Enrique Lores said in the release. He said the company had moved to sharpen its transformation plan and that branded checkout had further stabilized, while its Venmo and Braintree units continued to grow.

Transaction margin dollars, a measure the company uses to track profitability excluding interest earned on customer balances, grew 3 percent, driven by Venmo, credit and Braintree, PayPal said. The results are an early test of the turnaround led by Lores, who became chief executive in February after joining from HP.

The quarter was reported against the backdrop of takeover interest in the company. Reuters reported on July 16 that Stripe and the private equity firm Advent International had made a roughly $53 billion offer for PayPal, which the board viewed as inadequate. PayPal has not publicly commented on the approach, and neither Stripe nor Advent has confirmed the terms.

PayPal, which was spun off from eBay in 2015, trades on the Nasdaq under the ticker PYPL and had a market value of about $49 billion at the time of the report. The company said it would hold its earnings call at 8:00 a.m. Eastern time.