# PayPal Payment Volume Climbs 10% as Transaction Margin Growth Lags

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/32596
Published: 2026-10-15T15:40:03.000Z
Updated: 2026-10-15T15:40:03.000Z
Section: Business

> Revenue rose 5% in the second quarter, while non-GAAP operating income fell 8%. PayPal raised its 2026 non-GAAP earnings-per-share outlook to about $5.38.

PayPal's second-quarter revenue rose 5% and payment volume increased 10%, but slower transaction-margin growth and lower operating income showed uneven results across the company’s reported measures.

For the quarter ended June 30, 2026, revenue reached $8.682 billion and total payment volume was $486.448 billion. PayPal reported $3.9 billion in transaction-margin dollars, up 1% from a year earlier. The company released its second-quarter results on July 28.

Non-GAAP operating income declined 8% to $1.507 billion. Non-GAAP operating margin narrowed to 17.4% from 19.8%, and non-GAAP diluted earnings per share fell 1% to $1.38. The results put faster payment-volume growth alongside slower transaction-margin growth and declines in operating income and diluted EPS.

PayPal raised its 2026 non-GAAP earnings-per-share outlook to about $5.38. Its May outlook had ranged from a low-single-digit decline to slightly positive growth. The company kept its full-year GAAP EPS forecast at a mid-single-digit decline.

For the third quarter, PayPal projected low-single-digit declines in both GAAP and non-GAAP EPS. The outlook therefore calls for declines in both measures for the quarter, while the full-year non-GAAP forecast is now about $5.38.

PayPal shares closed at $56.10 at 4 p.m. ET (20:00 UTC) on Oct. 14. That was 37.8% above the June 10 closing price of $40.70.

“Branded checkout has further stabilized,” PayPal President and CEO Enrique Lores said. The company's third-quarter earnings call is scheduled for Oct. 27.