PayPal has reported GAAP net income of $1.11bn for the first quarter of 2026, down 14% from $1.29bn in the prior-year period.
For the three months that ended on 31 March 2026, the payment group’s GAAP net revenues rose 7% year-on-year to $8.4bn.
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Quarterly GAAP operating income fell 3% to $1.5bn, while non-GAAP operating income also declined, down 5% to $1.5bn.
GAAP earnings per share stood at $1.21 in Q1 2026, down 6% compared with $1.29 in the same quarter a year earlier.
PayPal said total payment volume (TPV) reached $464bn for the quarter, representing 11% growth on a reported basis. Payment transactions also increased 7% to 6.5 billion.
The results were published as PayPal’s new CEO Enrique Lores pursues changes aimed at improving performance and reducing costs amid competition in the payments sector.
Lores said: “The company has valuable assets in our brands, technology, and team – and there is significant potential ahead of us. We are taking deliberate steps to sharpen our strategy, simplify our organisation, and improve both our growth trajectory and cost structure by focusing our investments where we believe they will have the greatest impact.
“I am confident in our ability to put the company on a more durable path to long-term growth and shareholder value creation, and we are executing with urgency.”
According to a Bloomberg report, PayPal is planning to cut around 20% of its workforce over the next two to three years.
The company employed about 23,800 people at the end of 2025, which would imply more than 4,500 roles could be affected if carried out at that scale.
The report added that the reductions would form part of a plan to deliver at least $1.5bn in savings over the next two to three years.
Recently, PayPal also announced changes to its organisational structure, including plans to make Venmo a separate business unit. Under the new structure, Venmo will sit within a newly created Consumer Financial Services & Venmo division.
