PayPal's third-quarter 2026 earnings per share came in at $1.26, below the prior-year figure, while nine-month EPS also slowed. The partnership with LianLian Global following the earnings announcement is drawing attention, with investors focused on the expansion of payment flows and deeper Venmo usage going forward.
PayPal Holdings' third-quarter 2026 earnings per share came in at $1.26, slightly below the prior-year figure. Nine-month EPS also slowed, suggesting continued pressure on margins despite management raising its adjusted earnings outlook.
The company's ability to achieve growth in new payment flows, including branded checkout, BNPL and creator payments, through a combination of cost reductions and product expansion is viewed as a short-term source of volatility.
The biggest risk is a shift in the product mix toward lower-fee products. Improving efficiency and rolling out new services will be key to preventing pressure on transaction margins.
The partnership with LianLian Global is considered the most important development following the latest earnings announcement, and is expected to support the expansion of PayPal's and Venmo's global payment networks and the integration of payment services for creators and contractors.
The company also presented targets of $38.7 billion in revenue and $4.7 billion in profit by 2029, assuming annual revenue growth of 4.3% and a slight decline in profit.