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PayPal Q1 2026 Results

A visual earnings tab for PYPL comparing reported Q1 results against Wall Street expectations, then highlighting the metrics that matter for the FinanceToGo thesis.

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AnalysisQ1 2026 Results

Actual vs Expectations

Expectation comparisons use analyst estimates available around the Q1 2026 release. The site keeps the visual takeaway clean and avoids visible source clutter.

Revenue$8.35B actual
Expected$8.11B expected
Difference+$0.24B beat
Beat

Revenue beat Street expectations while growing 7% year over year.

Non-GAAP EPS$1.34 actual
Expected$1.27 expected
Difference+$0.07 beat
Beat

Adjusted EPS beat analyst expectations, though growth was only 1% year over year.

Q1 result dashboard

Transaction margin dollars$3.81B+3% year over year
Transaction margin ex-interest$3.54B+3% year over year
GAAP operating margin17.8%Down 182 bps
Non-GAAP operating margin18.4%Down 229 bps
Free cash flow$903M10.8% FCF margin
Adjusted free cash flow$1.72B20.6% adjusted FCF margin
Cash & investments$13.5BBalance sheet liquidity
Q1 buybacks$1.5B~34M shares repurchased

What beat

  • Revenue came in at $8.35B versus $8.11B expected.
  • Non-GAAP EPS came in at $1.34 versus $1.27 expected.
  • Adjusted free cash flow reached $1.72B, supporting the cash-flow/value thesis.
  • Buybacks remained aggressive at $1.5B in Q1.

What still worries me

  • GAAP operating margin contracted to 17.8%.
  • Non-GAAP operating margin contracted to 18.4%.
  • Transaction margin dollar growth was only 3%.
  • Management’s near-term guidance still implies pressure rather than acceleration.
Guidance watch

Beat quarter, cautious outlook

For Q2, management guided transaction margin dollars to a low-single-digit decline and non-GAAP EPS to a high-single-digit decline. For FY2026, PayPal still expects $6B+ in adjusted free cash flow and about $6B of buybacks, but transaction margin dollars are expected to be slightly down.

FCFTM$EPS

FinanceToGo takeaway

PayPal beat expectations, but it did not fully answer the turnaround question. The quarter supports the valuation and buyback story, while the margin trend keeps PYPL in the “worth researching / turnaround” bucket rather than a clean compounder bucket.