The Quarter in Brief
PayPal reported its third quarter of 2026, the three months ended September 30, before the market opened on October 27. Net revenues were $8.58 billion, up 2% from $8.42 billion a year earlier. Reported earnings per share were $1.25, down 4% from $1.30. Non-GAAP earnings per share, the company's own measure that leaves out items such as restructuring charges, the amortization of acquired intangible assets and gains and losses on strategic investments, were $1.45, up 8% from $1.34.
The two halves of the report pointed in different directions. Revenue fell short of the roughly $8.71 billion analysts had expected, while non-GAAP earnings per share were well ahead of the expected $1.31 or so. What made this quarter different was the gap between the business and the share count: non-GAAP net income fell 3%, but PayPal bought back so many shares that earnings per share still rose 8%. Restructuring charges rose to $255 million from $69 million, and PayPal raised its full-year non-GAAP earnings per share guidance to about $5.60 from about $5.38.