PayPal's economics are now effectively 100% fee-driven, with non-interest income at $8.6B representing 100.0% of total revenue in 2026Q3 while net interest income fell to $0, leaving the company entirely exposed to transaction and value-added service take rates.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Efficiency gains are evident as the efficiency ratio improved to 24.6% in 2026Q3 from 30.2% in 2024Q4, but provisions of $5.1B now consume more than triple the $1.4B operating income, keeping diluted EPS essentially flat at $1.25 versus $1.25 a year earlier.
PayPal has moved from a growth‑at‑all‑costs model to disciplined growth, prioritizing higher‑margin businesses such as Braintree, Venmo, and cross‑border commerce. The shift also enhances merchant services with fraud prevention and Buy‑Now‑Pay‑Later options, positioning the company for sustainable margin expansion.
In 2024, PayPal repurchased roughly 9% of its outstanding shares, signaling management’s conviction that the stock is undervalued. These buybacks provide downside support and amplify upside potential.
Valuation models indicate intrinsic value discounts of 59.4% to 62.5% versus current price, and PayPal’s P/E ratio sits below industry averages, underscoring a compelling discount.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 27, 2026 | $1.45+10.7% vs $1.31 | $8.6B-1.5% vs $8.7B |
Q3 2026 Jul 28, 2026 | $1.38+7.8% vs $1.28 | $8.7B+2.5% vs $8.5B |
Q2 2026 May 5, 2026 | $1.34+4.7% vs $1.28 | $8.4B+3.8% vs $8.0B |
Q1 2026 Feb 3, 2026 | $1.23-4.7% vs $1.29 | $8.7B-1.3% vs $8.8B |
Through the first nine months of 2026, PayPal generated $4.1 billion in free cash flow. The fintech stock trades at a forward price-to-earnings ratio of 9.7.
When stock prices fall, every buyback dollar goes further. These five companies are taking advantage.
American Express maintains a premium brand position with high-spending customers and a closed-loop payments network. PayPal offers massive global scale through its two-sided network of over 400 million active consumer and merchant accounts.
Fintech stocks are rallying behind Block (NYSE:XYZ | XYZ Price Prediction), whose Q3 2026 results topped forecasts and arrived with a higher outlook. Block shares have rose to $88.08 by afternoon, up 16%.
Benchmark PYPL against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for PayPal Holdings, Inc. (PYPL)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $59.24 | $52.26B | 10.95 | 4.19% | 15.99% | 25.73% | 0.23% | |
| $422.65 | $789.11B | 41.44 | 11.69% | 52.51% | 64.52% | 0.56% | |
| $652.70 | $576.71B | 39.51 | 16.53% | 47.8% | 252.94% | 0.47% | |
| $28.73 | $14.85B | 38.31 | 5.43% | 27.15% | 22.56% | 5.68% | |
| $62.88 | $33.53B | 9.92 | 3.6% | -18.9% | -15.72% | — | |
| $97.40 | $24.18B | 16.71 | -23.75% | -9.38% | -3.99% | 1.02% |
PayPal Holdings, Inc. (PYPL) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
PayPal Holdings, Inc. (PYPL) SEC filings — annual & quarterly reports (10-K, 10-Q)
Oct 27, 2026·SEC
Jul 28, 2026·SEC
May 21, 2026·SEC
Get notified when PYPL posts new earnings or crosses analyst targets
Free. No account needed. Unsubscribe any time.
PayPal Holdings, Inc. (PYPL) stock FAQ — growth, dividends, profitability & financials explained
PayPal Holdings, Inc. (PYPL) grew revenue by 4.2% in fiscal year 2025, compared with the prior fiscal year.
Yes. PayPal Holdings, Inc. (PYPL) earned $4.73B in net income over the trailing twelve months (a 13.9% net margin).
Yes. PayPal Holdings, Inc. (PYPL) pays a dividend that yields 0.23% at the current price, a small yield.
PayPal Holdings, Inc. (PYPL) had a return on equity (ROE) of 25.7% in fiscal year 2025. That is well above the market's typical 10-15%.
PayPal Holdings, Inc. (PYPL) has a net interest margin (NIM) of 0.1%. NIM has been under pressure due to interest rate environment.
PayPal Holdings, Inc. (PYPL) has an efficiency ratio of 28.7%. This is excellent, indicating strong cost control.
