PayPal Holdings Inc
PayPal Stock Falls Ahead of Q3 Earnings
PayPal, whose products include PayPal checkout, Venmo and Braintree, reports results before Tuesday's market open. Wall Street is looking for $1.31 in earnings per share and $8.71 billion in sales.
Last year's third quarter set a high bar. PayPal posted $1.34 per share on an adjusted basis. Management had told investors to expect a drop of a few percent, so $1.31 fits that guidance.
Wall Street's EPS estimate already assumes a small drop from last year, so the result will show how PayPal is tracking against its guidance. A higher number would mean PayPal is beating the outlook it set in July, and anything above last year's $1.34 would signal growth the company had not predicted. A lower number would miss analysts' view and could raise questions among investors who have seen shares fall over 21% over the past year.
PayPal's Q2 Results
PayPal's July 28 report showed mixed growth with pressure on profits. Revenue of $8.7 billion came in 5% higher, or 3% higher once currency swings are removed. Earnings per share on an adjusted basis fell 1% to $1.38, and adjusted operating margin narrowed by 2.48 percentage points to 17.4%.
CEO Enrique Lores said the quarter's progress encouraged him, noting that "branded checkout has further stabilized." Lores also cited momentum at Venmo and Braintree and moves to broaden the business into financial services. Citing its execution, PayPal lifted its 2026 adjusted earnings forecast to roughly $5.38 per share..
PYPL Shares Are Sliding
PYPL Price Action: PayPal shares were down 3.72% at $54.90 at the time of publication on Monday, according to Benzinga Pro.
At current prices, the stock is at its lowest level since Oct. 9. Over the past 12 months, PayPal stock was down 21.82%, lagging the Financials sector ETF (XLF), which was up 5.18% over the same period.
