PayPal raises 2026 profit forecast as turnaround gains traction
Benchmarks Nifty22,749.75-3.46FEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.32 % Invest NowFEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.45 % Invest NowEnter search…
PayPal has raised its annual profit forecast as a multi-year turnaround begins to take effect. The company anticipates achieving significant cost savings through workforce reductions and operational efficiencies. Consumer spending remains strong despite economic challenges, aiding growth in payment volume. Additionally, PayPal expects adjusted profits in the upcoming holiday quarter to exceed Wall Street expectations. The focus on transformation under new leadership aims for sustainable profitability.
PayPal lifted its annual adjusted profit forecast on Tuesday, as a years-long turnaround starts to bear fruit, with improving margins and resilient consumer spending providing fresh momentum.The company has stepped up efforts to revive growth, most recently under CEO Enrique Lores, as it struggles to sustain its pandemic-era popularity amid intense competition from Apple and Google and newer fintechs.
As on 27 Oct 2026, 01:30 AM IST
S&P 500 Top Gainers
Synopsys454.33(5.62%)Akamai Technologies98.50(5.31%)Tesla391.62(5.21%)Lockheed Martin635.20(5.13%)S&P 500 Top Losers
Fair Isaac708.07(-13.15%)Coterra Energy32.56(-8.62%)DoorDash168.44(-6.10%)Charter Communications102.18(-5.92%)"We are making good progress in our multi-year transformation," Lores, who took the helm earlier this year after the board ousted Alex Chriss over dissatisfaction with the pace of change and execution, said in a statement.
"While there is more work to do, we are increasingly confident in our path to durable, profitable growth and remain focused on execution," he added.
The payments company now expects full-year adjusted profit of about $5.60 per share, compared with its previous forecast and Wall Street analysts' expectations of $5.38, according to estimates compiled by LSEG.
Live Events
Adjusted profit came in at $1.45 per share in the three months ended September 30, sailing past estimates of $1.31.
Revenue of $8.6 billion in the third quarter was a tad below estimates of $8.7 billion. Shares of the company fell 1.2% in premarket trading.
REVIVAL ON TRACK
The company said it was on track to achieve $700 million in gross run-rate cost savings by the end of 2026, driven by cuts to more than 2,000 jobs and a reduction of over 25% in managerial roles.
Efforts to streamline operations, optimize its portfolio and accelerate AI adoption, including using AI chat agents to support customer service, are also supporting the cost-management efforts, PayPal said.
The company has set a goal of securing at least $1.5 billion in gross run-rate savings over the next two to three years.
Adjusted operating margin, a key metric for investors, expanded 16 basis points to 18.8% in the third quarter.
Earlier this year, Reuters reported, citing sources, that PayPal had received a buyout offer of $60.50 per share from Stripe and private equity firm Advent International, a bid that many analysts described as "low-ball."
The offer, which valued PayPal at about $53 billion, was reportedly deemed inadequate by the board and represented a fraction of the roughly $360 billion valuation the company commanded at its peak in 2021.
SPENDING ENGINE KEEPS HUMMING
More broadly, US consumers have continued to open their wallets despite economic uncertainty and sticky inflation, helping sustain spending growth across the payments industry.
PayPal's total payment volume grew 7% on a foreign exchange-neutral basis to $487.1 billion in the third quarter.
The year-end holiday season brings a crucial sales period for the payments sector, as retailers roll out eye-catching discounts and doorbuster deals online and in stores for Black Friday, Cyber Monday and Christmas.
PayPal expects adjusted profit in the fourth quarter to come in at $1.43 per share, well above Street expectations of $1.35 and $1.23 a year earlier.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onPayPal profit forecast 2026PayPal turnaround strategyPayPal CEO Enrique LoresPayPal adjusted profit Q3 2023PayPal stock analysisPayPal revenue growth
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...moreless(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onPayPal profit forecast 2026PayPal turnaround strategyPayPal CEO Enrique LoresPayPal adjusted profit Q3 2023PayPal stock analysisPayPal revenue growth
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...morelessPrime ExclusivesInvestment IdeasStock Report PlusePaperWealth EditionKYC and KYB: Inside Damani’s Avenue Supermarts that refuses to charge more – Part 1 of 3
Will oil turn into a lingering problem? Is the world economy, India, or the market prepared?
KYB and KYC: Business behind the wealth creator called ‘Divi’s Lab’ – Part 2, concluding
KYB and KYC: Business behind the wealth creator called “Divi’s Lab” – Part 1
The global business of promising more
One company, 2 words. Bond yield and CDS: Will they decide the fate of global markets?
- 1
- 2
- 3
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET
Unlock Access to All Exclusives with ETPrime FREE TRIAL
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
Trial offer expiring in00 : 05 : 00
I'd rather pay ₹2599 nowUh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Prime Account Detected!
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Unlock ETPrime's Exclusive Stories Today!
Big Price Drop! Flat 40% Off
Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In nowOffer Exclusively For You
Save up to Rs. 700/-
ON ET PRIME MEMBERSHIP
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get Flat 40% Off
Then ₹ 1749 for 1 year
Avail OfferOffer Exclusively For You
ET Prime at ₹ 49 for 1 month
Then ₹ 1749 for 1 year
Avail OfferSpecial Offer
Get flat 40% off on ETPrime
Avail OfferAvail OfferClaim NowAlready a Member? Sign In nowNeed Assistance?
Connect with an ETPrime expert for personalized support and guidance
+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '' + h3 + '
' + h4 + '
- ' + listing + '
What’s Included with
ETPrime Membership
1Exclusive Insights That Matter
Uncover the truth with our investigative stories
Make strategic moves using the real-world case studies
Read industry-specific stories to identify emerging trends
Spot opportunities with in-depth insights that matter
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
The problem with lab grown diamonds
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
2Invest Wisely With Smart Market Tools & Investment Ideas
Alpha Trade
Get daily trade ideas from SEBI-registered research analysts.
Investment Ideas
Grow your wealth with stock ideas & sectoral trends.
Stock Reports Plus
All-in-one stock research with Stock Score, peer comparison & key signals.
BigBull Portfolio
Get to know where the market bulls are investing to identify the right stocks.
Stock Analyzer
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Market Mood
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Stock Talk Live at 9 AM Daily
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
3Stay informed anytime, anywhere with ET ePaper
ePaper - Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper - Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
5Enjoy Complimentary Subscriptions From Top Brands
Stream new documentaries from all across the world every day.
Stories you might be interested in
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
