Revenue Growth Driven by Transaction Volume
Total revenue increased 7.2% YoY from $7.79B to $8.35B in Q1 FY2026, reflecting continued growth in payment volumes and transaction activity across PayPal's platform.
PayPal Holdings, Inc. is expected to release its Q2 2026 10-Q filing in the upcoming earnings season. Last quarter: PayPal's Q1 FY2026 revenue grew 7.2% YoY to $8.35B, but net income fell 13.5% to $1.11B as margin compression and higher costs weighed on profitability despite continued top-line expansion.
Drawn from management commentary in the Q1 2026 10-Q:
Total revenue increased 7.2% YoY from $7.79B to $8.35B in Q1 FY2026, reflecting continued growth in payment volumes and transaction activity across PayPal's platform.
Operating margin declined approximately 1.8 percentage points YoY to 17.8% (from 19.6%), as operating income fell 2.7% to $1.49B despite higher revenues, indicating cost growth outpacing revenue growth.
Net income dropped 13.5% YoY to $1.11B from $1.29B, with net margin at 13.3%, suggesting elevated expenses below the operating line — such as interest costs or tax items — further compressed earnings.
Revenue
$8.35B
++7.21% YoY
EPS (Basic)
$1.22
-6.87% YoY
Operating Income
$1.49B
-2.75% YoY
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