PayPal Raises 2026 Profit Forecast, Signals Turnaround Traction

PayPal (PYPL) has lifted its full-year adjusted profit forecast to $5.60 per share, up from $5.38 and exceeding analyst expectations. The payments giant cites improving margins and resilient consumer spending as its multi-year transformation gains momentum [1].

Key points:

• Guidance Increase: New forecast of $5.60 EPS vs. prior $5.38, above LSEG consensus.
• Cost Savings: On track for $700M in gross run-rate savings by end of 2026, targeting $1.5B over 2-3 years.
• Margin Expansion: Adjusted operating margin expanded 16 basis points to 18.8% in Q3.

The company's efforts to streamline operations and accelerate AI adoption are supporting cost management, boosting confidence in its path to profitable growth [1].