PayPal Holdings (1PYPL) AI Stock Analysis

Company Guidance

For full-year 2026, PayPal raised guidance to approximately $15.7 billion in transaction margin dollars, or $14.6 billion excluding interest on customer balances, mid-single-digit growth in non-transaction operating expenses, and approximately $5.60 in non-GAAP EPS, with at least $6.5 billion of adjusted free cash flow and approximately $6 billion in share repurchases; online branded checkout is expected to deliver low-single-digit TPV growth on a currency neutral basis, with similar 1%-2% online branded growth throughout the fourth quarter. For the fourth quarter, PayPal expects low-double-digit revenue growth on a currency neutral basis, slightly positive growth in transaction margin dollars, TM dollars excluding interest on customer balance to be slightly positive, flat to low-single-digit growth in non-transaction operating expenses, and approximately $1.43 in non-GAAP EPS. PayPal remains on track for at least $1.5 billion in gross run-rate cost savings over the next two to three years, with a run-rate of more than $700 million exiting the fourth quarter; over time, it expects sustainable total company transaction margin dollar growth in the mid-single-digit range and solid double-digit EPS growth, while targeting 2027 non-GAAP EPS growth similar to this year and planning further transaction margin dollar and operating expense investment.