IT Home, October 27 news: PayPal today released its first three quarters of fiscal year 2026 (January 2026 to September 2026) and its third quarter report (July 2026 to September 2026):
- Total operating revenue: $25.619 billion (approximately RMB 171.231 billion at current exchange rates), up 4.6% year-over-year.
- Net profit attributable to shareholders: $3.29 billion (approximately RMB 21.99 billion at current exchange rates), a year-over-year decrease of approximately 13.3%
- Operating cash flow: $4.709 billion (approximately RMB 31.474 billion at current exchange rates)
- Basic earnings per share: $3.74 (approximately RMB 25 at the current exchange rate)
- Diluted earnings per share: $3.71 (approximately RMB 24.8 at the current exchange rate)
- Debt-to-asset ratio: 76.13%
- Total operating revenue: $8.584 billion (approximately RMB 57.373 billion at current exchange rates), up 2% year-over-year and down approximately 1% sequentially.
- Gross trading volume: $3.95 billion (approximately RMB 26.401 billion at the current exchange rate), up 2% year-over-year.
- Trading profit margin: 46%
- Net profit attributable to parents: $1.073 billion (approximately RMB 7.172 billion at current exchange rates), a 14% year-over-year decrease
- Operating cash flow: $1.592 billion (approximately RMB 10.641 billion at current exchange rates), a 19% year-over-year decrease.
- Free cash flow: $1.431 billion (approximately RMB 9.564 billion at current exchange rates), a 17% year-over-year decrease.
- Basic earnings per share: $1.26 (approximately RMB 8.4 at the current exchange rate)
- Diluted earnings per share: $1.25 (approximately RMB 8.4 at current exchange rate), a 4% year-over-year decrease
- Debt-to-asset ratio: 76.1%
The company stated that its cumulative performance for the first three quarters of fiscal year 2026 was generally in line with market expectations, with Non-GAAP earnings per share increasing by 8%. PayPal is a leading global digital payment platform, serving consumers and merchants across approximately 200 markets with digital financial services including payments, money transfers, and checkout solutions.
For the first three fiscal quarters, the company achieved a cumulative net revenue of $25.619 billion (approximately RMB 171.231 billion at current exchange rates), representing a 4.6% year-over-year growth; GAAP net attributable profit amounted to $3.29 billion (approximately RMB 21.99 billion at current exchange rates), a 12.9% year-over-year decline, primarily due to non-recurring expenses such as restructuring costs. The net cash flow from operating activities for the first three fiscal quarters totaled $4.709 billion (approximately RMB 31.474 billion at current exchange rates), reflecting overall stable cash flow.
For the third fiscal quarter, net revenue amounted to $8.584 billion (approximately RMB 57.373 billion at current exchange rates), representing a 2% year-over-year increase and a 1% increase on a constant currency basis, with a slight sequential decline of 1%. GAAP net attributable profit was $1.073 billion (approximately RMB 7.172 billion at current exchange rates), a 14% year-over-year decrease; Non-GAAP net profit was $1.245 billion (approximately RMB 8.321 billion at current exchange rates), a 3% year-over-year decrease. GAAP diluted earnings per share were $1.25 (approximately RMB 8.4 at current exchange rates), down 4% year-over-year; Non-GAAP diluted earnings per share were $1.45 (approximately RMB 9.7 at current exchange rates), up 8% year-over-year.
Quarterly gross profit from trading amounted to $3.95 billion (approximately RMB 26.401 billion at current exchange rates), representing a 2% year-over-year increase, with gross margin remaining stable at 46%, flat compared to the prior year. Net cash flow from operating activities for the quarter was $1.592 billion (approximately RMB 10.641 billion at current exchange rates), a 19% year-over-year decline; free cash flow was $1.431 billion (approximately RMB 9.564 billion at current exchange rates), down 17% year-over-year.
Regarding the outlook for next quarter and the full year, the company raised its full-year 2026 guidance for Non-GAAP transaction profit and Non-GAAP EPS, while maintaining its GAAP EPS guidance:
- For the fourth fiscal quarter, GAAP EPS is expected to be approximately $1.37 (approximately RMB 9.2 at current exchange rates), and Non-GAAP EPS is expected to be approximately $1.43 (approximately RMB 9.6 at current exchange rates).
- Full-year 2026 GAAP EPS guidance is approximately $5.07 (equivalent to about RMB 33.9 at current exchange rates), and Non-GAAP EPS guidance is approximately $5.60 (equivalent to about RMB 37.4 at current exchange rates), up from the previous guidance of $5.38 provided in July.
As of September 30, 2026, the company’s total cash, cash equivalents, and investments amounted to $15.1 billion (approximately RMB 100.925 billion at current exchange rates), with total interest-bearing debt of $13.5 billion (approximately RMB 90.231 billion at current exchange rates). In the quarter, the company returned $1.5 billion (approximately RMB 10.026 billion at current exchange rates) to shareholders through share repurchases and announced a cash dividend of $0.14 per share (approximately RMB 0.94 per share), maintaining consistent overall shareholder returns.