PayPal raises 2026 profit forecast as turnaround gains traction
It expects a full-year adjusted profit of about US$5.60 per share
PayPal has increased its profit forecast for 2026, signaling that a multi-year turnaround is paying off. The company now anticipates a full-year adjusted profit of around US$5.60 per share, surpassing both its earlier forecast and Wall Street analysts' expectations of US$5.38. CEO Enrique Lores attributes the progress to improving margins and resilient consumer spending, despite competition from Apple, Google, and emerging fintechs.
The company has intensified efforts to revive growth, including cost-cutting measures such as job reductions and managerial position cuts, as well as optimization of its portfolio and acceleration of AI adoption. Adjusted operating margin expanded to 18.8% in the third quarter, and PayPal expects adjusted profit in the fourth quarter to be at US$1.43 per share, well above expectations of US$1.35 and US$1.23 from the previous year.
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