PayPal Holdings, Inc. (PYPL) Earnings Call Transcripts

PayPal Holdings, Inc.'s Latest Earnings Call - September 9, 2026

In the third quarter of fiscal year 2026, PayPal Holdings, Inc. (PYPL:US) reported revenue of $6.5 billion, slightly below the consensus estimate of $6.6 billion, reflecting a 5% year-over-year increase. Earnings per share (EPS) came in at $0.85, missing the expected $0.90. Management acknowledged a larger-than-expected impact from European tariffs on transaction volume, particularly affecting cross-border transactions, leading to a revised guidance for branded checkout growth to 1%-2% for the quarter. Despite these challenges, the company remains committed to its strategic initiatives aimed at enhancing consumer engagement and expanding its portfolio in financial services, including BNPL (buy now, pay later).

Reported metrics

Guidance from management

Management maintained its guidance for free cash flow at $6 billion and reiterated its commitment to double-digit EPS growth. However, they revised branded checkout growth expectations to 1%-2% due to external pressures from European tariffs.

What management said

I think it's going to be consistent across the board. But given that prepays much bigger business at Venmo and the opportunity that we have on that front are a more significant part of the market or consumer investment [indiscernible] would be to the PayPal customers.

Well, if you think about the connect rate that we have now with the debit card that we have launched is still a relative low connect rate is growing really fast. We grew in Q2 more than 70%, but the room for improvement is very significant. We're also very pleased with the progress we have made on Pay with Venmo, expanding that to more merchants. It's another great opportunity that we have. And these 2 in the short t...

What analysts pressed on

Analysts expressed concerns about the impact of European tariffs on transaction volumes and the potential for further downward revisions to guidance. There were also questions regarding the effectiveness of the new consumer-focused strategies and the timeline for realizing cost savings from the restructuring efforts.

Main topics on the call

• Impact of European Tariffs — Management noted a larger-than-expected impact from European tariffs on transaction volume, particularly affecting cross-border transactions from China. They stated, "Our original expectation was that this was going to h...
• Shift in Business Model Focus — The company is rebalancing its focus from merchant-centric strategies to enhancing consumer engagement. CEO Enrique Lores emphasized, "Changing that has been one of the key priorities that we have driven during the last ...
• Growth in Venmo and BNPL — Venmo continues to show strong performance with seven consecutive quarters of double-digit TPV growth. Lores mentioned, "We have a tremendous opportunity to maintain the growth that we see in Venmo, but at the same time,...
• Cost Savings Initiatives — PayPal is targeting at least $1.5 billion in gross run rate cost savings over the next 2-3 years. Lores stated, "We have identified 3 major areas where we see savings: simplification of our organizational structure, simp...

Read the full PayPal Holdings, Inc. transcript (September 9, 2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 104 PayPal Holdings, Inc. earnings call transcripts on record, spanning January 29, 2020 to September 9, 2026. Based on this history, PayPal Holdings, Inc. reports quarterly. The most recent call on file is dated September 9, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

PYPL

Exchange

NasdaqGS

Country

US

Sector

Financials

Industry

Financial Services

Calls on record

104

First call

January 29, 2020

Most recent

September 9, 2026

Reporting cadence

quarterly