PayPal Reports Q3 2026 Growth Driven by Venmo Expansion and Cost-Cutting Measures
PayPal Holdings, Inc. (PYPL) reported third-quarter 2026 results that exceeded expectations, characterized by a 2% rise in net revenues to $8.6 billion and an 8% increase in non-GAAP EPS to $1.45. The company's performance was bolstered by strong growth in Braintree and Venmo, alongside favorable foreign exchange rates and improved transaction margins. Strategic cost-management initiatives are yielding significant results, with the company on track toward a $1.5 billion gross run-rate savings target. This includes an organizational simplification that removed three management layers and reduced headcount by over 2,000 positions. Venmo continues to be a high-growth engine, with debit card usage growing over 55% and 'Pay with Venmo' TPV surging by 43%. Despite headwinds from the removal of EU de minimis tax exemptions and challenges in the U.K. market, PayPal raised its full-year non-GAAP EPS guidance to $5.60. The company maintains a strong liquidity position of $15.1 billion, supporting continued capital returns and technological modernization through cloud migration and AI integration.
Tickers: $PYPL
Topics: Cost Savings EPS Beat Layoffs Revenue Growth Venmo Expansion