--- title: "Paypal | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 8.353 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/285269544.md" datetime: "2026-05-05T21:15:27.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285269544.md) - [en](https://longbridge.com/en/news/285269544.md) - [zh-HK](https://longbridge.com/zh-HK/news/285269544.md) --- # Paypal | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 8.353 B Revenue: As of FY2026 Q1, the actual value is USD 8.353 B, beating the estimate of USD 8.056 B. EPS: As of FY2026 Q1, the actual value is USD 1.21, missing the estimate of USD 1.2383. EBIT: As of FY2026 Q1, the actual value is USD 1.492 B. #### Consolidated Results Overview (Three Months Ended March 31, 2026 vs. 2025) #### Segment Revenue - **Net Revenues**: Increased by 7% from $7,791 million in Q1 2025 to $8,353 million in Q1 2026 . This growth was primarily driven by an increase of approximately $410 million from Braintree, $140 million from PayPal, and $70 million from Venmo products and services, largely due to growth in Total Payment Volume (TPV) and the number of payment transactions . This was partially offset by a negative impact of approximately $120 million from hedging activities in Q1 2026 compared to gains in Q1 2025 . Approximately 42% of net revenues in Q1 2026 were from customers outside the U.S., compared to 43% in Q1 2025 . - **Transaction revenues**: Increased to $7,501 million in Q1 2026 from $7,016 million in Q1 2025, representing a 7% increase . - **Revenues from other value added services**: Increased to $852 million in Q1 2026 from $775 million in Q1 2025, a 10% increase . #### Operational Metrics - **Operating Expenses**: Increased by 10% to $6,865 million in Q1 2026 from $6,261 million in Q1 2025, primarily due to an increase in transaction expense . - **Transaction expense**: Increased to $4,165 million in Q1 2026 from $3,704 million in Q1 2025 . - **Transaction and credit losses**: Increased to $378 million in Q1 2026 from $371 million in Q1 2025 . - **Customer support and operations**: Increased to $446 million in Q1 2026 from $398 million in Q1 2025 . - **Sales and marketing**: Increased to $518 million in Q1 2026 from $488 million in Q1 2025 . - **Technology and development**: Increased to $793 million in Q1 2026 from $731 million in Q1 2025 . - **General and administrative**: Decreased to $491 million in Q1 2026 from $503 million in Q1 2025 . - **Restructuring and other**: Increased to $74 million in Q1 2026 from $66 million in Q1 2025 . - **Operating Income**: Decreased by 3% to $1,488 million in Q1 2026 from $1,530 million in Q1 2025 . - **Operating Margin**: Declined to 18% in Q1 2026 from 20% in Q1 2025, reflecting the unfavorable impact of a higher transaction expense growth rate . - **Net Income**: Decreased by 14% to $1,113 million in Q1 2026 from $1,287 million in Q1 2025, due to lower operating income and a decrease in other income (expense), net . - **Other Income (Expense), Net**: Shifted to - $95 million in Q1 2026 from $73 million in Q1 2025, primarily due to net losses and impairments on strategic investments in Q1 2026 compared to net gains in Q1 2025 . #### Cash Flow - **Net Cash Provided by Operating Activities**: Decreased by 2% to $1,134 million in Q1 2026 from $1,160 million in Q1 2025 . #### Unique Metrics - **Active Accounts**: Increased by 1% to 439 million in Q1 2026 from 436 million in Q1 2025 . - **Number of Payment Transactions**: Increased by 7% to 6,475 million in Q1 2026 from 6,045 million in Q1 2025 . - **Number of Payment Transactions per Active Account**: Decreased by 1% to 58.7 in Q1 2026 from 59.4 in Q1 2025 . #### Future Outlook and Strategy PayPal Holdings, Inc. announced a strategic reorganization on April 29, 2026, aimed at accelerating long-term growth, simplifying its operating structure, and driving innovation . This program focuses on realigning the operating structure and adopting Artificial Intelligence and automation, with an expectation to generate at least $1.5 billion in gross annualized run-rate savings over the next two to three years . Further details on the program’s structure and expected phasing of savings will be provided in future periods . ### Related Stocks - [PYPL.US](https://longbridge.com/en/quote/PYPL.US.md) ## Related News & Research - [Should You Buy, Sell, or Hold PayPal Stock?](https://longbridge.com/en/news/287549629.md) - [PayPal’s online checkout empire is under siege as rivals squeeze its core business](https://longbridge.com/en/news/287649141.md) - [District Announces Q3 2026 Results | DMXCF Stock News](https://longbridge.com/en/news/288010458.md) - [ATS Reports Fourth Quarter Fiscal 2026 Results | ATS Stock News](https://longbridge.com/en/news/287895609.md) - [Reducto Named to Redpoint's 2026 InfraRed 100](https://longbridge.com/en/news/287832370.md)