Earnings call transcript: PayPal tops EPS in Q3 2026 but revenue misses

PayPal reported its Q3 2026 earnings on March 3, 2026, delivering an adjusted earnings per share (EPS) of $1.45, which surpassed analysts' expectations of $1.31 and marked an 8% year-over-year increase. The company's revenue, however, fell short of forecasts, landing at $8.58 billion, slightly below the $8.71 billion projected. As a result, shares of PayPal traded lower in premarket trading, declining 2.64% to $53.54 from the previous close of $54.99.

Despite the earnings beat, investors' focus remained on the sales miss and their cautious outlook for the near term. PayPal's transaction margin dollars improved by 2% year-over-year, while non-transaction operating expenses increased by just 1%. The company's adjusted free cash flow for the quarter reached $2.0 billion. In raising its full-year 2026 outlook, PayPal now expects EPS of around $5.60 and adjusted free cash flow of at least $6.5 billion.