PayPal Holdings, Inc. (PYPL) AI Stock Analysis

PayPal Holdings, Inc. operates a technology platform facilitating digital payments for merchants and consumers across approximately 200 markets in nearly 100 currencies. The company offers services under brands including PayPal, Braintree, Venmo, and Xoom. In addition, it provides PayPal Credit for consumer financing, Hyperwallet for mass payouts, and Zettle for small business payments. The platform allows users to withdraw funds to bank accounts in 56 currencies and maintain balances in 25 currencies. Through its acquisition of Honey, PayPal offers online shopping tools and savings opportunities for consumers.

PayPal generated revenue of $25.37B in FY2021, which expanded to $27.52B in FY2022, $29.77B in FY2023, $31.80B in FY2024, and $33.17B in FY2025, reflecting a 5-year revenue CAGR of 9.1%. Gross margin shifted from 55.2% in FY2021 to 46.6% in FY2025, while operating margin expanded from 16.8% to 18.3%. Net income rose to $5.23B in FY2025, up from $4.15B in FY2024 and $2.42B in FY2022, generating EPS of $5.30. In the latest quarter ended June 30, 2026, quarterly revenue grew 4.8% year-over-year, while quarterly earnings declined 3.1% year-over-year, alongside trailing twelve months revenue of $34.13B and net profit margin of 14.4%.

As of June 30, 2026, PayPal held $11.26B in cash and short-term investments against total debt of $14.22B, resulting in net debt of $2.96B. Total assets stood at $82.74B, shareholders' equity reached $19.82B, and the current ratio was 1.29 with a debt-to-equity ratio of 0.72. In FY2025, operating cash flow was $6.42B and free cash flow reached $5.56B. Capital expenditures totaled $852.0M, dividends paid were $130.0M, and share buybacks totaled $6.05B, contributing to a 5-year share count change of -24.1%.

PayPal trades at a trailing P/E of 10.7x and a forward P/E of 9.1x, alongside a PEG ratio of 0.93. Its enterprise value of $47.06B corresponds to an EV to EBITDA multiple of 6.5x and an EV to revenue multiple of 1.4x, with a price-to-sales ratio of 1.4x and price-to-book of 2.3x. In the stock market, PayPal has declined 13.2% over the 1-year period, trailing the S&P 500 (SPY) return of 16.8%. Over a 5-year period, PayPal dropped 78.6% while the S&P 500 gained 83.0%.

PayPal pays an annual forward dividend of $0.56, offering a dividend yield of 0.99% with a payout ratio of 10.6%. The company distributes dividends on a Quarterly frequency and has logged 2 consecutive years paid. Its last ex-dividend date was September 4, 2026.

Among Wall Street analysts, ratings consist of 4 Strong Buy, 3 Buy, 33 Hold, 1 Sell, and 3 Strong Sell recommendations. The mean price target is $56.74, representing an upside of 0.1% over the last close of $56.70. For the fiscal year ending December 31, 2026, analysts estimate revenue of $34.74B and EPS of $5.39, reflecting 1.5% EPS growth. Over the last 4 quarters, PayPal recorded 3 EPS beats. The next earnings date is October 27, 2026.

This page is an AI-written research summary of PayPal Holdings, Inc. (PYPL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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