PayPal has reported a split result for the third quarter of 2026: profit ahead of expectations, but revenue growth that disappointed the market. The payments company said net revenue rose 2% year on year to $8.58 billion, while total payment volume rose 6% to $487.1 billion.

On the profit side, adjusted earnings per share came in at $1.45, up 8% from a year earlier and ahead of the roughly $1.31 consensus cited in reporting. Under standard accounting rules, however, net income fell 14% to $1.07 billion, reflecting higher restructuring and other charges. Active accounts were broadly flat at 440 million, up just 0.6%.

US growth offset by international weakness

The geographic split helps explain the modest headline growth. US net revenue rose 5.2% to $5.00 billion, while international revenue fell 2.2% to $3.58 billion, according to reporting of the results. Transaction margin dollars, the revenue left after transaction costs and losses, rose 2% to $3.95 billion, suggesting the core payments business held up better than the top line alone suggests.

Guidance raised

Chief executive Enrique Lores said the company was raising its full-year non-GAAP guidance for transaction margin dollars and earnings per share, lifting the full-year adjusted earnings outlook to about $5.60 from about $5.38. This is a factual earnings report, not investment advice, and share prices move for many reasons beyond a single quarter's figures. Sources: Digital Transactions and Stocktwits.