PayPal — May 5, 2026 release

1Q 2026 Results 1                               1Q'26 Financial Results Presented in millions, except per share data and percentages 1Q'26 1Q'25 YoY Growth FXN YoY Growth Total payment volume $463,955 $417,208 11% 8% GAAP Net revenues $8,353 $7,791 7% Operating income $1,488 $1,530 (3%) Operating margin 17.8% 19.6% (182bps) Effective tax rate 20.1% 19.7% 0.4pts Net income (loss) $1,113 $1,287 (14%) Earnings per diluted share $1.21 $1.29 (6%) Net cash provided by operating activities $1,134 $1,160 (2%) Non-GAAP Net revenues $8,353 $7,791 7% 5% Transaction margin dollars $3,810 $3,716 3% Transaction margin dollars excluding interest on customer balances $3,536 $3,418 3% Operating income $1,541 $1,616 (5%) Operating margin 18.4% 20.7% (229bps) Effective tax rate 18.8% 19.5% (0.6pts) Net income $1,234 $1,329 (7%) Earnings per diluted share $1.34 $1.33 1% Free cash flow $903 $964 (6%) Adjusted free cash flow $1,720 $1,381 25% ————————————————————————————————————————————— Financial Guidance 2026 Guidance: PayPal is reiterating full year guidance, building on a solid start to the year while reflecting a complex and dynamic operating environment. Please see PayPal’s 1Q'26 earnings presentation for more detail. May 2026 Guidance February 2026 Guidance Prior year period 2Q'26 GAAP EPS Mid-single digit decline N/A $1.29 Non-GAAP EPS 1 High-single digit decline or approximately (-9%) N/A $1.40 FY'26 GAAP EPS 2 Mid-single digit decline Mid-single digit decline $5.41 Non-GAAP EPS 3 Low-single digit decline to slightly positive Low-single digit decline to slightly positive $5.31 Please see “Non-GAAP Measures of Financial Performance” for reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures and important additional information. 1. Estimated non-GAAP amounts for the three months ending June 30, 2026 reflect adjustments of approximately ~$35 million. 2. FY'25 GAAP EPS included a positive impact of ~$0.14 from PayPal’s strategic investment portfolio and crypto assets held for investment. 3. Estimated non-GAAP amounts for the full year ending December 31, 2026 reflect adjustments of approximately ~$225 million.           1Q 2026 Results 2 Conference Call & Webcast PayPal Holdings, Inc. will host a conference call to discuss first quarter 2026 results at 8:00 a.m. Eastern Time today. A live webcast of the conference call, together with a slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP mea