PayPay Posts Diluted EPS of 25.42 Yen and Raises 2027 Revenue Forecast
Key Facts
PayPay reported results for the second quarter ended September 30, 2026, posting diluted earnings per share of 25.42 yen, compared with 113.85 yen in the same period a year earlier. The company’s results statement showed operating profit rising to 33.172 billion yen from 20.488 billion yen, while profit for the period fell to 18.440 billion yen from 73.220 billion yen. The divergence between operating profit and net profit reflects comparison with an unusually tax-affected prior year. The company said the year-earlier period included a one-time tax benefit of 57.5 billion yen. Excluding that benefit, profit rose year over year, according to PayPay’s statement.
The improvement in operating performance was accompanied by an increase in adjusted earnings before interest, taxes, depreciation and amortization, with adjusted EBITDA rising 55% year over year to 42.1 billion yen. The margin on the metric also increased 6 percentage points to 36%, exceeding the company’s guidance. The figures highlight broader operating profitability during the quarter, while accounting net profit declined compared with the year-earlier period. The company set revenue growth against growth in operating expenses, saying revenue grew faster than expenses. Transaction costs amounted to 24% of revenue, compared with 22% in the same quarter a year earlier.
Payments was the largest revenue driver, with revenue rising 27% to 96.7 billion yen. At the same time, gross transaction value increased 20% to 5.56 trillion yen, alongside faster growth in segment revenue than in transaction volume. Monthly active users totaled 42.22 million, up 9% year over year. Together, the indicators point to a broader user base and increased financial activity across the platform during the quarter. PayPay said in its statement that payments segment revenue grew 27%, outpacing the 20% increase in gross transaction value.
Financial services grew faster than payments, with revenue rising 38% to 22.9 billion yen. The company attributed the performance to interest income, which increased 70% year over year. The expansion of financial services adds a source of growth to the payments business, which generated revenue of 96.7 billion yen during the period. But business growth also coincided with transaction costs rising to 24% of revenue from 22% a year earlier. PayPay said the increase in these costs was mainly due to higher interest and credit costs.
On its outlook, PayPay raised its revenue range for the fiscal year ending March 31, 2027, to 474–478 billion yen, from its previous estimate of 465–473 billion yen. It also set third-quarter revenue, for the quarter ending December 31, 2026, at between 121 billion yen and 123 billion yen. The new guidance sets an annual range above the previous forecast, alongside the company’s expectation of continued revenue growth in the next quarter. The figures provide the financial framework the company will track through the end of its fiscal year. The disclosure provided did not include a consensus estimate for comparison.
The company announced two briefings on its second-quarter results for November 4, 2026: the first from 9:00 to 10:30 a.m. Japan time, and the second from 8:00 to 9:00 p.m. The investor relations calendar identifies the first as a second-quarter results briefing and the second as an investor briefing on the same day. The briefings follow the release of the quarter’s results and annual and quarterly forecasts. The reported results include growth in payments and financial services, alongside gains in operating profit and adjusted EBITDA. The two scheduled sessions will allow the company to present its results to investors in separate meetings during the day.