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San Jose, California-based PayPal Holdings, Inc. (PYPL) is a global financial technology company that provides digital payments and commerce solutions for consumers and businesses. Its platform enables users to send and receive payments, shop online and in-store, transfer money, and manage financial transactions through brands such as PayPal, Venmo, Braintree, Xoom, and Honey. The company has a market capitalization of $49.9 billion.
The fintech company is expected to release its Q2 2026 earnings on Tuesday before the market opens on Jul. 28. Ahead of the event, analysts expect the company’s EPS to be $1.28 on a diluted basis, down 8.6% from $1.40 in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in three of its last four quarters, while missing on one occasion.
For fiscal 2026, analysts project the company’s EPS to be $5.32, up marginally from fiscal 2025. Moreover, its EPS is expected to rise by roughly 8.3% year over year to $5.76 in fiscal 2027.
PYPL stock has declined 23.4% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 18.4% rise and the State Street Financial Select Sector SPDR ETF’s (XLF) 7.1% rise during the same time frame.
On Jul. 15, PayPal shares surged about 17% after reports that Stripe and Advent International submitted a $53 billion joint acquisition proposal valuing the company at $60.50 per share, a 28% premium to its pre-announcement price. The rally reflected investor optimism over a potential buyout, although some analysts argued the offer undervalues PayPal's long-term growth prospects.
Analysts are skeptical about PYPL, with the stock having a “Hold” rating overall. Among the 45 analysts covering the stock, five are recommending a “Strong Buy,” two suggest a “Moderate Buy,” 33 suggest a “Hold,” one suggests a “Moderate Sell,” and four suggest a “Strong Sell.”
While the stock currently trades above the mean price target of $49.91, its Street-high target of $65 implies an upswing potential of 14.9% from the current market price.
