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PayPal Holdings, Inc.
NASDAQ: PYPL Financials IT 🔎 Screen
S&P 500 Nasdaq 100
$51.1B
Market Cap
10.8
P/E
0.87
PEG
23.7%
ROCE
25.7%
ROE
0.61
D/E
18.7%
OPM
-28.6%
% from 52W High
62
α RS
🔍 PYPL is showing a high-conviction setup because it matches 10 of 39 tracked screener presets, Sector RRG has Technology in the Leading quadrant with the trail still rolling over, and RS Rating is 62. Net: Broad signal stack, not a recommendation. ? Conviction RRG RS Rating
Sources
Conviction 10/39 · Technology in Leading quadrant · RS Rating 62
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🌏 Global Investor Returns
Currency-adjusted total returns for PYPL including FX impact
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📈 Price History
Ratio Health
Excellent
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By Category
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About

PayPal Holdings, Inc. operates a technology platform that enables digital payments for merchants and consumers worldwide. The company operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, consumer credit and debit products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards. It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Hyperwallet, Honey, and Paidy names. The company was founded in 1998 and is headquartered in San Jose, California.

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📈 Growth Pattern
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⭐ Superinvestors Holding PYPL
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 193.2K $8.7M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$8.7B
+5% YoY
Operating Income
$1.4B
-5% YoY
Operating Margin
16.4%
-1.7pp YoY
Net Income
$1.1B
-12% YoY
What Went Right
  • Revenue grew 5% to $8.7B, and TPV rose 10% to $486.4B, with Venmo and Braintree both growing mid-teens.
  • Branded checkout TPV stabilized at +2% FXN for a second straight quarter, with BNPL growth accelerating to 26% and Pay with Venmo up 44%.
  • Guided FY26 TM$ to ~$15.6B and non-GAAP EPS to ~$5.38, up from prior expectations.
What to Watch
  • Non-GAAP operating income fell 8% to $1.5B and non-GAAP EPS declined 1% to $1.38, reflecting higher investment spend.
  • Branded checkout growth remains muted at ~2% FXN, with only low-single-digit growth expected for FY26.
  • Non-transaction OpEx is expected to grow 7-8% this year, and a $120-140M transformation charge is possible in H2.
Management Guidance
  • 3Q26: low double-digit revenue growth (FXN), slightly positive TM$ growth, slightly positive to low-single-digit TM$ ex interest growth, and non-GAAP EPS low-single-digit decline.
  • FY26 raised: TM$ ~$15.6B, TM$ ex interest on customer balances ~$14.5B, and non-GAAP EPS ~$5.38.
  • FY26 also assumes at least $6B adjusted free cash flow and ~$6B in share repurchases; online branded checkout growth now expected at low single digits FXN.
Investor Lens
The thesis is modestly stronger after this call: branded checkout has stabilized, Venmo and Braintree remain double-digit growers, and management raised full-year TM$ and EPS guidance. The cost-out program is on track, but near-term profitability is still pressured by higher OpEx and investment spend. Diversification into financial services, BNPL, and Venmo monetization should support a re-acceleration in transaction margin dollar growth over time. Execution risk remains high with M&A speculation unresolved, though management is leaning into its standalone plan.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q2 beat expectations: revenue +5%, TM$ +3% ex interest, guidance raised
Revenue
Revenue grew 5% on a spot basis to $8.7B, with currency-neutral growth of 3%. TPV rose 10% spot / 9% FXN to $486.4B, driven by mid-teens growth in Venmo and Braintree while branded checkout stabilized at +2% FXN.
Profitability
GAAP net income declined 12% to $1.1B, while non-GAAP EPS declined 1% to $1.38, still beating guidance. Non-GAAP operating income fell 8% to $1.5B due to higher investment and operating expenses.
Margins
GAAP operating margin contracted 171bps to 16.4%, and non-GAAP operating margin contracted 248bps to 17.4%. Transaction margin dollars grew 1% overall, but were up 3% excluding interest on customer balances.
Balance Sheet
Cash, cash equivalents, and investments totaled $15.3B, with debt of $13.4B. Adjusted free cash flow was $1.8B, and PayPal returned $1.5B via share repurchases in Q2.
Key Risks
Management flagged higher non-transaction OpEx growth of 7-8% and a possible $120-140M reorganization charge in H2. Branded checkout growth is still only around 2%, and analysts pressed on M&A speculation, which management declined to comment on.
Outlook
Q3 is guided to low double-digit revenue growth FXN and slightly positive TM$ growth, with non-GAAP EPS down low single digits. For FY26, management raised TM$ to ~$15.6B and non-GAAP EPS to ~$5.38.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-28
Q2 results exceeded expectations with 5% revenue growth and strong TPV momentum, especially in Venmo and Braintree. Raised full-year guidance for transaction margin dollars and EPS, while executing a multi-year transformation focused on cost savings, technology modernization, and diversified growth.
Q1 2026 Q1 2026 2026-05-05
Q1 2026 saw strong TPV and revenue growth, with Venmo and PSP leading segment gains. The company is executing a major transformation, targeting $1.5B in cost savings via AI and organizational streamlining, while reiterating full-year guidance amid macro and competitive headwinds.
Q4 2025 Q4 2025 2026-02-03
Leadership transition aims to accelerate execution as 2025 saw solid results but branded checkout underperformed due to macro and execution challenges. 2026 guidance is cautious, with targeted investments expected to weigh on near-term growth but drive long-term benefits.
Q3 2025 Q3 2025 2025-10-28
Q3 2025 saw strong growth in transaction margin dollars, EPS, and TPV, with Venmo and BNPL leading segment gains. Guidance was raised for full-year TM dollars and EPS, and a dividend was initiated alongside continued buybacks. Strategic investments and partnerships position the business for durable, profitable growth.
Q2 2025 Q2 2025 2025-07-29
Profitable growth continued with 8% TM dollar growth and 18% non-GAAP EPS increase year-over-year. Branded experiences, Venmo, and BNPL showed strong momentum, while PayPal World and crypto initiatives expand global reach. Full-year guidance was raised for both TM dollars and EPS.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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