PayPal Holdings, Inc. (NASDAQ:PYPL) reported Q2 revenue of about $8.68–8.7B, raised FY26 non‑GAAP EPS to ~$5.38 and flagged $1.8B adj FCF while rejecting a $60.50/share bid, unveiling multi‑year cost, productivity and AI plans targeting ~$400M savings by end‑2026.
Previous Week Recap
- PayPal Revenue And Guidance: PYPL Q2 revenue $8.68–8.7B (+~5%), adjusted EPS $1.38, TPV $486.4B (+~9–10% ex‑FX). GAAP net income $1.104B. Raised FY26 non‑GAAP EPS to ~$5.38; $1.8B adj FCF.
- PayPal Rejects Bid: PayPal (PYPL) rejected a $60.50/share joint bid from Stripe and Advent on July 20, citing financial and regulatory concerns. Board kept Goldman Sachs and Evercore to review strategic options.
- PayPal Cuts Layers, AI Modernization: PayPal (PYPL) plans to cut management layers through 2027, boost productivity and marketing into 2028, and modernize tech with AI through 2029, targeting about $400M cost savings by end-2026.
- PayPal Valued At 10x 2027 EPS: Grayscale peer review valued PayPal (PYPL) near 10x projected 2027 EPS, ranking it lowest in the fintech/crypto peer group based on projected 2027 earnings and forward P/E.
- PayPal Results Call Scheduled: PayPal (PYPL) will host a results call at 8:00 a.m. ET with a live webcast; the recording will be available for 90 days.
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