PayPal reported adjusted earnings per share of $1.45 for the third quarter, beating Wall Street's expectations and prompting the company to lift its full-year 2026 profit outlook, even as revenue missed analyst estimates.
Revenue rose 2% to $8.58 billion, short of the $8.71 billion analysts had forecast, while total payment volume processed across its network increased 6% to $487.1 billion, suggesting the shortfall reflects pricing and mix pressures rather than a drop in underlying transaction activity.
PayPal said it has cut more than 2,000 jobs and reduced managerial headcount by over 25%, measures it expects will generate about $700 million in gross annualized cost savings by the end of 2026, part of a target of at least $1.5 billion over two to three years; the company is also deploying AI tools, including customer-service chat agents, to streamline operations.
The company raised its 2026 adjusted-EPS forecast to about $5.60, up from $5.38 previously, continuing a pattern of upward revisions through the year that followed stronger transaction-margin growth and an 18% rise in non-GAAP EPS in the second quarter.
Read more about AI Platforms
