TLDR PYPL stock declined Tuesday as PayPal’s third-quarter revenue of $8.58 billion missed analyst estimates. Adjusted earnings reached $1.45 per share, exceeding forecasts of $1.31 despite a
PYPL stock fell Tuesday after PayPal reported its slowest quarterly revenue growth this year, despite earnings beating forecasts. PayPal raised its 2026 adjusted profit outlook after third-quarter results.
PayPal reported revenue of $8.58 billion in the third quarter, up 2% year over year. Analysts surveyed by Koyfin expected $8.71 billion. Shares slipped after the Tuesday morning release.
Adjusted earnings reached $1.45 per share versus $1.31 expected. US revenue rose 5% to $5 billion, while overseas revenue fell 2% to $3.58 billion. Restructuring and other charges increased to $255 million.
PayPal processed $487.1 billion in payments, up 6%. Separately, Aave opened a lending market supporting PayPal’s PYUSD stablecoin on October 23, adding another venue where users can borrow the token.
Active accounts reached 440 million, up 0.6%. Payment transactions grew 7% to 6.8 billion, according to the quarterly report. Transaction activity increased faster than the customer base.
Transaction margin dollars, revenue after payment costs and credit losses, rose 2% to $3.95 billion. Interest on customer balances fell to $289 million from $321 million. Free cash flow decreased 17% to $1.43 billion.
In Hong Kong, HSBC launched its RedCoin stablecoin through PayMe last week, with plans to support transfers and merchant payments. The launch was separate from PayPal’s earnings announcement.
PayPal recorded adjusted net income of $1.25 billion, down 3% year over year. However, diluted shares fell to 858 million from 960 million, helping adjusted earnings per share increase despite the decline in income.
The company repurchased approximately 28 million shares for $1.5 billion during the quarter. Over the previous 12 months, it spent $6 billion buying back about 117 million shares.
PayPal raised its full-year adjusted earnings forecast to about $5.60 per share from $5.38. It maintained its reported earnings outlook near $5.07 and projected fourth-quarter adjusted earnings of approximately $1.43 per share.
Separately, Canada proposed new rules for stablecoin issuers, including reserve requirements and a cap on redemption fees. The proposal concerns the wider digital payments market and is not part of PayPal’s earnings forecast.
Chief Executive Enrique Lores said the company’s multi-year transformation was progressing. PayPal also declared a 14-cent dividend on PYPL stock, payable December 24 to shareholders of record on December 4.
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