PayPal Raises 2026 Adjusted Earnings Forecast After Third-Quarter Profit Beat

PayPal raised its full-year adjusted earnings forecast on October 27, 2026, after third-quarter profit exceeded analysts' expectations even as revenue growth remained modest.

The US payments company reported adjusted earnings of $1.45 per share for the three months ended September 30, above the $1.31 consensus estimate cited by financial reporting. Revenue was approximately $8.58 billion, an increase of about 2% from a year earlier but below analysts' forecasts. The gap between earnings and revenue performance is an important part of the results: stronger earnings per share do not by themselves show that customer spending or transaction income is accelerating at the same pace.

Management now expects adjusted full-year earnings of approximately $5.60 per share, compared with a previous forecast of about $5.38. The company also forecast adjusted fourth-quarter earnings of roughly $1.43 per share. These are non-GAAP projections, meaning they exclude specified items and should not be confused with reported accounting earnings.

Total payment volume reached approximately $487.1 billion during the quarter, about 6% higher than a year earlier, or 7% on a currency-neutral basis. Payment volume measures the value of payments processed and is not the same as PayPal's revenue. The company is pursuing cost reductions, including a leaner organizational structure, while trying to strengthen its branded checkout services and other consumer and merchant products.

PayPal's earnings improvement comes as it faces competition from established digital wallets and newer financial technology companies. Its revised outlook signals management's confidence in efficiency and profitability, but the revenue shortfall and competitive pressure remain questions for future quarters. The forecast is not a guarantee of the final annual result.