PYPL

PayPal’s first quarter results for 2026 exceeded Wall Street’s revenue and profit expectations, but the market responded negatively, reflecting investor caution around the company’s operating margin decline and ongoing transformation efforts. CEO Enrique Lores, in his first quarter leading the company, cited the need for accelerated modernization and a clearer focus on the consumer side of the business. Lores noted, “We need to recommit to the fundamentals... becoming a technology company again, sharpening our focus on consumers, aligning the company around three strong businesses and simplifying how we work.” Management also highlighted underinvestment in technology and the need for structural simplification as key challenges. Is now the time to buy PYPL? Find out in our full research report (it’s free). Revenue: $8.35 billion vs analyst estimates of $8.05 billion (7.2% year-on-year growth, 3.8% beat) Adjusted EPS: $1.34 vs analyst estimates of $1.27 (5.6% beat) Adjusted EBITDA: $2.06 billion vs analyst estimates of $1.64 billion (24.7% margin, 25.6% beat) Operating Margin: 17.8%, down from 19.6% in the same quarter last year Market Capitalization: $39.76 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Harshita Rawat (Bernstein): asked about branded checkout dynamics in Europe and the steps being taken to improve growth. CFO Jamie Miller cited macroeconomic softness and heightened competition, particularly in the U.K. and Germany, while CEO Enrique Lores stressed country-specific execution and rebalancing focus toward consumers. Timothy Chiodo (UBS): questioned the details and timeline of the $1.5 billion cost savings, especially within customer support. Miller explained the savings would come in phases, with early wins from organizational simplification and longer-term benefits from AI automation. James Faucette (Morgan Stanley): inquired about reinvestment versus capital returns, and how management will allocate savings. Lores said the company will rigorously prioritize investments based on return potential, with more detail on key performance indicators forthcoming. Darrin Peller (Wolfe Research): asked...

Last Thursday, Block XYZ, which offers financial and marketing services through its commerce ecosystem to sellers and consumers, reported impressive first-quarter 2026 results. The fintech stock reported better-than-expected adjusted earnings per share (EPS) in the quarter. Management also raised its full-year outlook following the strong start to 2026. Given the solid results and increased outlook, we intentionally waited before publishing our review to gauge whether price movements might reveal deeper sentiment trends. XYZ stock has outpaced its peers, such as PayPal Holdings, Inc. PYPL and StoneCo Ltd. STNE, while it underperformed the S&P 500 composite in the year-to-date period. PayPal and StoneCo shares have declined 22.5% and 30.7%, respectively, over the same time frame. Image Source: Zacks Investment Research Let’s delve deeper and find out. On paper, Block reported strong growth in the first quarter of 2026. The company’s net revenues came in at $6.06 billion, rising 4.9% year over year. Adjusted EPS were 85 cents, reflecting a 51.8% year-over-year increase. Adjusted operating income surged 56.2% to $728 million, translating to a 25% margin. In the quarter, gross profit increased 27.1% year over year to $2.91 billion. Cash App, the crown jewel of Block’s ecosystem, posted $1.91 billion in gross profit, up 38.3% year over year, driven by growth across Cash App Borrow and Commerce Enablement (including Cash App Card and BNPL). The company highlighted that Cash App’s growth in the first quarter is being driven by deeper engagement, new features like Afterpay pre-purchase, Cash App Score, and Moneybot, plus broader lending integration across the platform. Moreover, Square reported a 9.4% gross profit increase to $982 million, driven primarily by Financial Solutions, most notably Square Loans. Block reported total gross payment volume (GPV) of $63.11 billion, up 11.1% year over year. Square GPV was $61.21 billion, up 13.2% year over year, while Cash App GPV was $1.90 billion, down from $2.70 billion in the year-ago quarter. The company continues to expect to accelerate GPV growth in 2026 compared to last year. In the first quarter of 2025, Cash App monthly actives came in at 59 million, remaining unchanged from the prior quarter. The company continues to expect low single-digit actives growth for the remainder of 2026. Bitcoin remains a meaningful part...

ST. PAUL, Minn., May 12, 2026 /PRNewswire/ -- At today's Annual Meeting of Shareholders, 3M (NYSE:MMM) shareholders overwhelmingly supported each of the proposals recommended for approval by the company. Preliminary Shareholder Voting Results 3M shareholders today voted on the following business items: 1) Shareholders supported 10 directors for one-year terms: David P. Bozeman, President, Chief Executive Officer and Director, C.H. Robinson Worldwide, Inc. Thomas "Tony" K. Brown, retired Group Vice President, Global Purchasing, Ford Motor Company William M. "Bill" Brown, Chairman of the Board and Chief Executive Officer, 3M Company Audrey Choi, retired Chief Sustainability Officer and Management Committee Member, Morgan Stanley Anne H. Chow, retired Chief Executive Officer, AT&T Business James R. Fitterling, Chair and Chief Executive Officer, Dow Inc. Suzan Kereere, President, Global Markets, PayPal Neil G. Mitchill, Jr., Executive Vice President and Chief Financial Officer, RTX Corporation Pedro J. Pizarro, President, Chief Executive Officer and Director, Edison International Thomas W. Sweet, retired Chief Financial Officer, Dell Technologies 2) Shareholders supported the appointment of PricewaterhouseCoopers LLP as 3M's independent registered public accounting firm for 2026. 3) Shareholders supported, on an advisory basis, executive compensation, as described in the company's Notice of Annual Meeting and Proxy Statement. 3M will disclose the final voting results on each item of business properly presented at the Annual Meeting on Form 8-K to be filed with the SEC. About 3M 3M (NYSE: MMM) is focused on transforming industries around the world by applying science and creating innovative, customer-focused solutions. Our multi-disciplinary team is working to solve tough customer problems by leveraging diverse technology platforms, differentiated capabilities, global footprint, and operational excellence. Discover how 3M is shaping the future at 3M.com/news. Please note that the company announces material financial, business and operational information using the 3M investor relations website, SEC filings, press releases, public conference calls and webcasts. The company also uses the 3M News Center and social media to communicate with our customers and the public about the company, products and services and other matters. It is possible that the information 3M p...

Paypal (NASDAQ: PYPL) came into Q1 2026 as a company in the middle of a reset and still managed to beat across the board. Revenue landed at $8.35 billion versus expectations of $8.05 billion. Adjusted EPS came in at $1.34, comfortably ahead of the $1.27 estimate. Total payment volume hit $464 billion, up 11% year over year, the highest in its history. And yet, the stock fell almost 9% before the market even opened. That kind of reaction usually means the headline numbers are not the real story. In this case, it comes down to guidance and how you interpret it. What Actually Worried Investors For Q2 2026, PayPal expects non-GAAP EPS to fall about 9% compared to last year. For the full year, it is guiding to flat or slightly lower earnings versus $5.31 in 2025. On the surface, that is not great. A company that just beat expectations is basically saying the next stretch could look worse. But there is an important detail that did not get much attention. PayPal is intentionally loading most of its costs into 2026. It is reorganizing teams, shifting roles, and rolling out AI across the business. All of that hits profits now. The payoff is supposed to come later, mainly from 2027 onward. So this is less about weakness and more about timing. They are choosing to take the hit upfront. Check out Buy or Sell PYPL Stock and see how PYPL's key metrics compare with peers such as Block (XYZ) and Affirm (AFRM) A New CEO, Very Early Days Enrique Lores took over as CEO on March 1, 2026, after running HP for six years. He is not from the payments world. He is known for restructuring large, complex businesses. His first big move was to split PayPal into three focused units: Checkout and core PayPal Consumer financial services and Venmo Payment services and crypto The idea is simple. Different businesses need different strategies. Keeping everything under one structure was slowing things down. Breaking it up creates clearer ownership and accountability. He is also targeting at least $1.5 billion in cost savings over the next two to three years and plans to cut about 20% of the workforce. That sounds aggressive, but this is a company generating $6.8 billion in free cash flow. It is not a survival move. It is about improving margins. See also, What GameStop’s $55B Bid For eBay Means For Investors The Buyback Story People Are Missing While everyone is focused on guidance, PayPal is...

Commerce.com reported higher revenue, stronger cash flow, and improved profitability as the company expands its AI-driven commerce ecosystem and payments strategy. Commerce.com (NASDAQ:CMRC) posted 5% revenue growth and returned to GAAP profitability in the first quarter of 2026. Gross Merchandise Volume (GMV) climbed 14%, signaling continued transaction growth across the platform. The company is increasingly positioning itself around AI-driven commerce, agentic shopping, and multi-channel product discovery. Adjusted EBITDA and free cash flow improved significantly year over year, strengthening the company’s financial profile. Partnerships with PayPal, Stripe, OpenAI, Google Gemini, and other AI-focused commerce integrations may expand Commerce’s competitive positioning. Commerce.com (NASDAQ:CMRC) reported first-quarter 2026 revenue of $86.8 million, up 5% year over year, while annual recurring revenue reached $359.8 million. The company also showed notable profitability improvement. GAAP operating income came in at $5.8 million versus a loss of $2.4 million a year earlier, while non-GAAP operating income increased to $12.4 million from $7.6 million. Gross Merchandise Volume rose 14% to $8.3 billion, reflecting higher commerce activity across the company’s ecosystem. Free cash flow improved to $14.1 million compared to negative free cash flow in the prior-year period. Management highlighted ongoing execution around payments, AI-powered commerce infrastructure, and product discovery integrations. “We’re off to a strong start in 2026, delivering solid financial results while continuing to execute against the strategy we laid out at the beginning of the year,” said Travis Hess, CEO of Commerce. The company announced several AI and commerce-related initiatives during the quarter, including integrations tied to OpenAI, Google Gemini, Microsoft Copilot, Meta, and Perplexity through its Feedonomics platform. Commerce also expanded partnerships with PayPal and Stripe to strengthen embedded payments and checkout capabilities. For the second quarter, Commerce expects revenue between $84.5 million and $85.5 million. Full-year 2026 guidance calls for revenue between $347.5 million and $369.5 million. The results suggest Commerce is attempting to reposition itself beyond traditional ecommerce infrastructure toward AI-enabled commerce orchestration and distributed shoppin...

PayPal stock reversed down amid better-than-expected Q1 earnings and a $1.5 billion cost reduction program.

New CEO Enrique Lores is executing a strategic reset, reorganizing PayPal around three core businesses—Checkout, Consumer financial services (Venmo) and Payment services—and prioritizing consumer value, cloud modernization and AI to speed product delivery. PayPal launched a multi-year cost program targeting at least $1.5 billion of gross run-rate savings over 2–3 years through structural realignment and accelerated AI/automation, creating a new AI transformation group to reengineer processes and reinvest some savings into growth. Q1 results showed TPV up 11% to about $464 billion and revenue up 7% (spot), with modest branded-checkout improvement, strong Venmo TPV growth (14%), a $1.5 billion share repurchase in the quarter, and reiterated full-year guidance while flagging a tougher Q2 and a slightly negative-to-slightly-positive non-GAAP EPS outlook for 2026. Interested in PayPal Holdings, Inc.? Here are five stocks we like better. Shift4’s Explosive Growth Comes With High-Stakes Risk PayPal (NASDAQ:PYPL) executives used the company’s first-quarter 2026 earnings call to outline a broad transformation agenda that includes reorganizing around three core businesses, accelerating technology modernization, and launching a multi-year cost savings program, while reiterating full-year guidance amid a “complex” macro and competitive backdrop. President and CEO Enrique Lores, newly in the role, said he joined PayPal “at an important moment” and believes the company can “accelerate the growth of the company while improving profitability and cash flow,” but added that PayPal needs “significant changes to improve the strategic and operational issues the company has faced.” → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook Affirm: A Solid Footing or More Volatility Ahead? Lores said his early observations included a strong foundation in brand, risk and underwriting, technology, and scale, but also pointed to “years of underinvestment” that require faster modernization—particularly becoming “cloud native” and adopting AI to increase developer productivity and reduce time to market. He also said PayPal has leaned too heavily toward the merchant side of its two-sided network in recent years, and that strengthening value for “hundreds of millions of consumers who choose PayPal and Venmo” is now a priority. “Doing that, we increase the value of our platform f...

PayPal Holdings, Inc. PYPL delivered a solid start to the first quarter of 2026, with non-GAAP earnings per share (EPS) of $1.34, beating the Zacks Consensus Estimate of $1.27 by 5.51%. The metric increased 1% year over year. Revenues came in at $8.35 billion, ahead of the consensus mark of $8.11 billion by 2.96% and up 7.2% from the year-ago period. The quarter reflected broad-based momentum across the platform, highlighted by total payment volume rising 11% to $464 billion, alongside steady profitability and strong cash generation. Transaction margin dollars increased 3% year over year to $3.81 billion in the quarter. Excluding interest on customer balances, transaction margin dollars also rose 3% to $3.54 billion. The performance shows PayPal held up its margin even while continuing targeted investments across the portfolio. Transaction margin declined to 45.6% from 47.7% a year ago. Still, the year-over-year increase in transaction margin dollars points to a business that is expanding profit pools, supported by scale and improving loss performance. PayPal ended the quarter with 439 million active accounts, up 1% from the year-ago period, indicating continued growth in platform reach. However, on a trailing 12-month basis, payment transactions per active account declined 1% to 58.7, reflecting softer frequency per account versus last year. That said, payment activity improved on an absolute basis. Total payment transactions increased 7% year over year to 6.5 billion, reflecting stronger overall activity across PayPal’s platform, even as transactions per active account edged down year over year. On a non-GAAP basis, operating income decreased 5% to $1.54 billion, and operating margin fell 229 basis points to 18.4% year over year. Non-transaction related expenses rose 8% to $2.27 billion, underscoring increased spending tied to technology and growth initiatives. Cash flow from operations was $1.13 billion and free cash flow totaled $903 million in the quarter. Adjusted free cash flow, which excludes timing impacts tied to buy now, pay later receivables, came in at $1.72 billion, reflecting strong underlying cash generation. PayPal returned significant capital to shareholders. The company repurchased approximately 34 million shares for $1.5 billion during the quarter and also initiated a dividend program, declaring a cash dividend of 14 cents per share payab...

PayPal (PYPL) beat Q1 2026 earnings with $8.4B revenue (up 7% YoY) and $1.34 adjusted EPS, but guided Q2 EPS to decline 9% YoY, sending shares down 10% as forward metrics are weighted heavily by fintech investors. PayPal’s strategic review of a potential Venmo spin-off, combined with a three-segment restructuring, offers catalysts for re-rating, but forward earnings deceleration and mounting competitive pressure from fintech challengers suggest near-term stabilization is uncertain. The analyst who called NVIDIA in 2010 just named his top 10 stocks and PayPal wasn't one of them. Get them here FREE. PayPal Holdings (NASDAQ:PYPL) shares are tumbling roughly 10% in early trading Tuesday morning to about $45.50, after the company reported a Q1 2026 earnings beat alongside a soft Q2 outlook. The stock closed Monday at $50.39 before the report. The slide extends an already painful run. PYPL stock entered the earnings report down 13% year to date and 25% over the past year, with shares off a punishing 80% over five years. The Q1 numbers were strong on the surface. Revenue came in at $8.4 billion, up 7% year over year (YoY), with adjusted earnings per share (EPS) of $1.34. The catalyst for selling sits in the forward guidance. The analyst who called NVIDIA in 2010 just named his top 10 stocks and PayPal wasn't one of them. Get them here FREE. PayPal guided Q2 2026 adjusted EPS to a 9% YoY decline, signaling that the Q1 beat was largely backward-looking. For fintech valuations, forward metrics carry more weight than trailing results, and a contracting EPS curve is hard to reconcile with growth-stock multiples. This pattern is familiar to PYPL shareholders. The beat-then-sell reaction has been a recurring theme for the stock, and today's move extends that pattern. Even a +14.53% Q1 2025 surprise produced only a 2% day-of move. Competitive pressure is part of the story. Apple (NASDAQ:AAPL) just printed a record Services quarter at $30.976 billion, while Visa (NYSE:V) and Mastercard (NYSE:MA) both delivered double-digit revenue growth in Q1 FY2026. Apple Pay, Stripe, Block, and emerging stablecoin rails continue to compress branded checkout share. Management is conducting a strategic review of Venmo, which generated $1.7 billion in revenue in 2025. A spin-off could unlock value if Venmo trades at a richer multiple as a standalone consumer brand, where investor sentiment...

US equity futures were trending higher on Tuesday as traders await a fresh batch of corporate earnin

PayPal PYPL is set to report its first-quarter 2026 results on May 5, before the opening bell. This digital payment company expected currency-neutral revenue growth in the low single digits for the to-be-reported quarter. Non-GAAP earnings per share (EPS) are expected to decline in the mid-single digits. The Zacks Consensus Estimate for first-quarter revenues is pegged at $8.12 billion, indicating an increase of 4.23% from the year-ago quarter’s reported figure. The consensus mark for earnings stands at $1.27 per share, up by a penny over the past month. However, it indicates for a decline of 4.51% from the figure reported in the year-ago quarter. Image Source: Zacks Investment Research Over the trailing four quarters, the company’s earnings per share surpassed the Zacks Consensus Estimate on three occasions and missed in the remaining period, with the average surprise being 7.83%. The graph below depicts this surprise history: PayPal Holdings, Inc. price-eps-surprise | PayPal Holdings, Inc. Quote However, our proprietary model does not conclusively predict an earnings beat for PayPal this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here. PayPal has an Earnings ESP of -0.08% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. PayPal is evolving into a comprehensive commerce platform, moving far beyond mere payments by leveraging advanced, data-powered tools to accelerate merchant expansion and foster customer loyalty. PYPL’s first-quarter results are expected to benefit from its scale, diversification and balance sheet strength. During the first quarter, the company continued to make progress on its transformation efforts and is likely to have gained from consumers and merchants expanding usage of PayPal. In the quarter under consideration, PYPL is expected to have benefited from an improving Total Payment Volume (TPV). The metric is likely to have gained from a strong relationship between the company and its merchants and consumers. Despite strong fundamentals, diversified offerings and strategic moves, PayPal is likely to have faced competitive pressure from other digital payment companies. Broader mac...

Paypal (PYPL) came out with quarterly earnings of $1.34 per share, beating the Zacks Consensus Estimate of $1.27 per share. This compares to earnings of $1.33 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.85%. A quarter ago, it was expected that this technology platform and digital payments company would post earnings of $1.29 per share when it actually produced earnings of $1.23, delivering a surprise of -4.65%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Paypal, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $8.35 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.96%. This compares to year-ago revenues of $7.79 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Paypal shares have lost about 13.7% since the beginning of the year versus the S&P 500's gain of 5.2%. While Paypal has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Paypal was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 R...