Changes in US stocks | Q2 revenue and profit both exceeded expectations, PayPal (PYPL.US) rose more than 4%

The Zhitong Finance App learned that on Tuesday, PayPal (PYPL.US) stock price rose. As of press release, the stock had risen more than 4% to $58.39. The company previously announced results for the second quarter of 2026. The company's revenue and adjusted earnings per share both exceeded market expectations, maintained double-digit growth in total payments (TPV), and raised full-year profit guidelines. Meanwhile, the company announced a quarterly cash dividend.

According to financial reports, PayPal's second-quarter revenue was 8.7 billion US dollars, up 4.8% year over year, higher than market expectations of about 230 million US dollars; adjusted earnings per share (EPS) was 1.38 US dollars, higher than market expectations of 1.28 US dollars.

In the second quarter, PayPal transaction profit increased 1% year over year to US$3.9 billion; after excluding interest income from customer balance, transaction profit increased 3% year over year to US$3.6 billion.

The payments business continues to grow steadily. Total payment amount (TPV) for the second quarter increased 10% year over year to US$486.4 billion; after excluding exchange rate effects, it increased 9%. Over the same period, the number of payment transactions increased 8% year over year to 6.8 billion; excluding payment service provider (PSP) transactions, the number of payment transactions increased 7%.

By the end of the second quarter, the number of active PayPal accounts increased 0.3% year over year to 439 million, but there was a slight decrease of about 200,000 accounts from the previous quarter; the average number of transactions per active account (TPA) over the past 12 months increased 3% to 60 times year over year, and increased 7% after excluding PSP transactions.

The board of directors also announced a cash dividend of $0.14 per share, which will be paid to shareholders registered as of September 4, 2026 on September 25, 2026.

Looking ahead, PayPal expects a low single-digit year-on-year decline in adjusted earnings per share for the third quarter, and the market currently expects $1.33. However, the company raised its earnings forecast for the full year, and it is expected that adjusted earnings per share will reach $5.38 in 2026, which is higher than the market forecast of $5.31.