Filing Flows › PayPal Holdings (PYPL) › Q1 2026
PayPal Holdings (PYPL) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 5, 2026
PayPal Holdings (PYPL) reported revenue of $8.4B for the first quarter 2026 (Q1 2026), +7% from a year earlier and -4% from the quarter before. Operating margin was 17.8%, net earnings $1.1B (13.3% of revenue).
PayPal Holdings, Q1 2026: revenue $8.4B (+7% year over year), operating margin 17.8%, net earnings $1.1B, operating cash flow $1.1B. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $8.4B | -4% | +7% |
| Operating profit | $1.5B | -2% | -3% |
| Net earnings | $1.1B | -23% | -14% |
| Operating cash flow | $1.1B | -52% | -2% |
| Free cash flow | $903M | — | -6% |
What changed
Revenue was $8.4B in Q1 2026, up 7% year over year and down 4% from the previous quarter. Transaction revenues was the largest line at 90% of revenue. Transaction revenues added $0.48B year over year (up 7%), 86% of the total change.
Operating profit was $1.5B, a 17.8% margin (down 1.8 points year over year). Operating profit fell $0.04B even though revenue rose $0.56B versus Q1 2025, so costs grew faster than sales. Total costs grew 10% against revenue growth of 7%. The fastest-growing cost line was Other operating costs (+11%). Net earnings were $1.1B, down 14% year over year. The effective tax rate was 20.1%.
Operating cash flow was $1.1B (down 2% year over year), 102% of net earnings. Non-cash charges added back $0.24B of depreciation and amortization and $0.26B of share-based compensation. Working capital and other items used $0.48B. After purchases of property and equipment ($0.23B), free cash flow as the company reports it was $0.90B.
Questions
What was PayPal Holdings' revenue in the first quarter 2026?
PayPal Holdings (PYPL) reported revenue of $8.4B for the first quarter 2026 (Q1 2026), +7% from a year earlier and -4% from the quarter before.
Was PayPal Holdings profitable in the first quarter 2026?
Operating profit was $1.5B (17.8% of revenue) and net earnings $1.1B.
Source: PayPal Holdings 10-Q on SEC EDGAR.