PayPal's strategic pivot to a fee-based, technology-driven model is yielding tangible results, with the efficiency ratio improving to 23.2% in Q2 2026 from 29.8% in Q1 2024, and operating income reaching $1.9 billion. The company maintains a fortress balance s...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue is almost entirely fee-based (98.8% in Q2 2026), with the efficiency ratio improving to 23.2% and operating income rising to $1.9 billion, despite net interest income turning negative at -$22 million.
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 9/23/2026, 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) |
|---|---|---|
Q3 2026Latest 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 |
Q4 2025 Oct 28, 2025 | $1.34+11.7% vs $1.20 | $8.4B+2.2% vs $8.2B |
PayPal Holdings Inc. (NASDAQ:PYPL) shares are trading higher Tuesday. The company announced a partnership with Meta that will let customers shop and check out using Meta's Muse personal AI agent across PayPal merchants worldwide.
PayPal's announcement comes a day after Shopify said it was going to use the AI agent.
Paypal (PYPL) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
PayPal World is gaining traction as PYPL seeks to boost transaction activity, deepen engagement and drive monetization across its ecosystem.
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 |
|---|---|---|---|---|---|---|---|
| $52.89 | $46.65B | 9.78 | 4.19% | 15.78% | 25.73% | 0.25% | |
| $362.04 | $675.95B | 35.49 | 11.69% | 50.78% | 61.26% | — | |
| $555.89 | $491.17B | 33.65 | 16.53% | 46.34% | 232.28% | — | |
| $34.98 | $18.08B | 46.64 | 5.43% | 27.15% | 22.56% | — | |
| $46.10 | $24.58B | 7.27 | 3.6% | 13.42% | 10.76% | — | |
| $84.78 | $21.05B | 14.54 | -23.75% | -9.38% | -3.99% | — |
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)
Jul 28, 2026·SEC
May 21, 2026·SEC
May 15, 2026·SEC
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PayPal Holdings, Inc. (PYPL) stock FAQ — growth, dividends, profitability & financials explained
PayPal Holdings, Inc. (PYPL) grew revenue by 4.2% over the past year. Growth has been modest.
Yes, PayPal Holdings, Inc. (PYPL) is profitable, generating $4.90B in net income for fiscal year 2025 (15.8% net margin).
Yes, PayPal Holdings, Inc. (PYPL) pays a dividend with a yield of 0.25%. This makes it attractive for income-focused investors.
PayPal Holdings, Inc. (PYPL) has a return on equity (ROE) of 25.7%. This is excellent, indicating efficient use of shareholder capital.
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 28.3%. This is excellent, indicating strong cost control.
