PayPal — Jul 28, 2026 release

2Q 2026 Results 1                               2Q'26 Financial Results Presented in millions, except per share data and percentages 2Q'26 2Q'25 YoY Growth FXN YoY Growth Total payment volume $486,448 $443,547 10% 9% GAAP Net revenues $8,682 $8,288 5% Operating income $1,427 $1,504 (5%) Operating margin 16.4% 18.1% (171bps) Effective tax rate 15.7% 17.5% (1.8pts) Net income (loss) $1,104 $1,261 (12%) Earnings per diluted share $1.25 $1.29 (3%) Net cash provided by operating activities $1,983 $898 121% Non-GAAP Net revenues $8,682 $8,288 5% 3% Transaction margin dollars $3,900 $3,844 1% Transaction margin dollars excluding interest on customer balances $3,619 $3,526 3% Operating income $1,507 $1,644 (8%) Operating margin 17.4% 19.8% (248bps) Effective tax rate 17.1% 17.3% (0.2pts) Net income $1,219 $1,370 (11%) Earnings per diluted share $1.38 $1.40 (1%) Free cash flow $1,775 $692 157% Adjusted free cash flow $1,832 $656 179% Financial Guidance 2026 Guidance: Following another strong quarter, PayPal is raising full year non-GAAP TM$ and EPS guidance and reaffirming GAAP EPS guidance. Please see PayPal’s 2Q'26 earnings presentation for more detail. July 2026 Guidance May 2026 Guidance Prior year period 3Q'26 GAAP EPS Low-single digit decline N/A $1.30 Non-GAAP EPS 1 Low-single digit decline N/A $1.34 FY'26 GAAP EPS 2 Mid-single digit decline Mid-single digit decline $5.41 Non-GAAP EPS 3 ~$5.38 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 September 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 $350 million which excludes potential second half 2026 transformation related charges.        2Q 2026 Results 2 Conference Call & Webcast PayPal Holdings, Inc. will host a conference call to discuss second 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 n