The story

PayPal reported second quarter adjusted earnings of $1.38 per share, exceeding analyst estimates of $1.28, while revenue rose 3% on a currency-neutral basis to $8.68 billion, ahead of the $8.47 billion expected. Total payment volume increased 9% on a currency-neutral basis to $486.4 billion. The company raised its 2026 adjusted profit forecast to approximately $5.38 per share, exceeding Wall Street's estimate of $5.31 and improving upon previous guidance for a low-single-digit decline to a slight increase from 2025 adjusted earnings per share of $5.31.

Adjusted operating margin contracted by 248 basis points to 17.4%, compared with 19.8% one year earlier. Management projected a low-single-digit adjusted profit decline for the third quarter, while analysts had expected a smaller 0.4% decrease. The company is targeting approximately $400 million in savings by the end of 2026 through organizational simplification and reduced management layers.

PayPal has received a $60.50-per-share takeover proposal from Stripe and Advent International valued at approximately $53 billion, which the board has considered inadequate, according to Reuters. CEO Enrique Lores said the company does not comment on market speculation or potential merger discussions, but added that if the company sees a path that would create superior value for shareholders than executing its current strategy, it would carefully consider it. Shares rose more than 4% during trading hours following the earnings release.