PayPal raised its 2026 adjusted earnings forecast to about US$5.60 a share from US$5.38 on October 27, after third-quarter adjusted earnings per share beat analysts’ estimates, even as revenue missed expectations.

Transaction margin dollars, a measure of profit from processing payments after expenses, reached US$3.95 billion. Total payment volume rose 6.3% year on year to US$487.1 billion as PayPal sought to diversify beyond its core checkout business.

The higher outlook comes after PayPal cut jobs and restructured its operations. Analysts have questioned whether the company’s profit improvements reflect cost cuts rather than sustainable revenue growth.

It also follows a leadership change in which PayPal appointed Enrique Lores as CEO after its branded checkout struggled.

That business remains under competitive pressure from Apple Pay and other digital wallets integrated by processors such as Stripe.

🔗 Source: Bloomberg

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