| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 90 | 10.4x | 18.2x | Top tier | |
Growth | 53 | 5.7% | 7.1% | Around median | |
Quality | 96 | — | — | Top tier | |
Safety | 29 | — | — | Bottom tier | |
Capital Return | 17 | 0.25% | 2.10% | Bottom tier | |
Momentum | 52 | -12.7% | 2.9% | Around median | |
Sentiment | 78 | 27 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
PayPal operates an open digital payments network connecting consumers and merchants, and has organized its business around three pillars: checkout payment solutions through PayPal, consumer financial services through Venmo, credit, and buy now, pay later, and payment processing and cryptocurrency services that include Braintree and Hyperwallet. The company generates revenue primarily from transaction fees, alongside value-added services such as consumer and merchant credit; in Q2 FY2026, transaction revenue reached $7.8 billion, compared with approximately $850 million from other value-added services.
In Q2 FY2026, revenue rose 5% to $8.68 billion, while total payment volume reached $486 billion and grew 9% on a currency-neutral basis. Non-GAAP earnings per share were $1.38, down 1% year over year but above the company's guidance, while non-GAAP operating income declined 8% to $1.5 billion due to higher non-transaction-related operating expenses and investment in technology transformation and growth.
The growth mix became more diversified in Q2 FY2026: Venmo payment volume grew 14%, payment processing services growth accelerated to 13%, and Braintree continued to grow at a mid-teens rate, while PayPal-branded online payment growth remained at just 2% on a currency-neutral basis. Adjusted free cash flow reached $1.8 billion, while the company ended the quarter with $15.3 billion in cash and investments versus $13.4 billion in debt.
The analyst consensus is Neutral, with an average price target of $56.87 and a wide range between $45 and $70, reflecting meaningful divergence in estimates of the transformation's success and the acquisition talks. The average target is approximately 28% below the 52-week range high of $79.215, while the lowest target exceeds the annual low of $38.46; this gap is consistent with a revaluation driven by challenges in branded payment growth and expense pressure, despite improvements in Venmo and Braintree and the increase in FY2026 guidance.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Revenue reached $8.68 billion, growing 5% year over year, and total payment volume reached $486 billion, growing 9% on a currency-neutral basis. Venmo volume grew 14%, payment processing services growth accelerated to 13%, while PayPal-branded online payments remained at 2%. Non-GAAP earnings per share reached $1.38, exceeding the company's guidance despite declining 1% year over year.
PayPal-branded online payments showed stability but have not yet returned to strong growth, as volume increased just 2% on a currency-neutral basis in Q2 FY2026 for the second consecutive quarter. The company raised its FY2026 growth forecast for this business to the low-single-digit range and expects growth of approximately 2% in Q3 FY2026. In contrast, branded experiences that include online payments, PayPal and Venmo cards, and tap-to-pay grew 6%, driven partly by growth of more than 60% in debit card spending and tap-to-pay.
Venmo payment volume grew 14% in Q2 FY2026, marking a seventh consecutive quarter of double-digit growth. Monthly active accounts for the Venmo debit card increased by more than 50%, while average revenue per account among users of both the debit card and Pay with Venmo was more than nine times higher than among users of peer-to-peer transfers only. Pay with Venmo also grew 44%, and the company is working to transform the app from a peer-to-peer transfer tool into a broader platform for sending, spending, and borrowing.
Automated analysis for informational purposes only — not investment advice.
Braintree grew at a mid-teens rate and delivered profitable growth for nine consecutive quarters through Q2 FY2026. Payment processing services volume growth accelerated to 13%, supported by merchant retention and increased adoption of services such as Payouts, Risk as a Service, and payment optimization. Financial services, including credit and buy now, pay later, represented approximately 20% of the company's transaction margin and were growing at a double-digit rate, with their revenue expected to grow at least twice as fast as the overall company during FY2026.
The company expects approximately $15.6 billion in transaction margin dollars, or $14.5 billion excluding interest on customer balances. It is also targeting non-GAAP earnings per share of $5.38, adjusted free cash flow of at least $6 billion, and share repurchases of approximately $6 billion. In Q3 FY2026, it expects low-single-digit growth in currency-neutral revenue, with a low-single-digit decline in adjusted earnings per share.
Reports on August 14 and 15, 2026 stated that Stripe and Advent International were in talks to acquire PayPal. The news reports said that PayPal rejected an initial offer from Stripe of $60.50 per share in July 2026 because it was insufficient. On the July 28, 2026 earnings call, management declined to comment on the details of the speculation, emphasizing that its focus was on executing the transformation plan while evaluating any opportunity that could deliver greater value to shareholders.
