PYPL AI Stock Analysis – Buy, Hold, or Avoid?
PayPal Holdings, Inc. (PYPL)
Fundamentals
PayPal has demonstrated steady revenue and earnings growth over the past several quarters, supported by solid operating margins and strong cash flow generation. While the company faces competitive and regulatory challenges, its robust financial health and market position underpin a positive fundamental outlook.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
4.75% YoY
Q2 2026
Net Income
-12.45% YoY
Q2 2026
Net Margin
Q2 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q2 2026
Net Income Growth YoY
Latest Quarter: Q2 2026
Revenue Per Share Growth YoY
Latest Quarter: Q2 2026
EPS Growth YoY
Latest Quarter: Q2 2026
Book Value Per Share Growth YoY
Latest Quarter: Q2 2026
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 8.7B | 8.4B | 8.7B | 8.4B | 8.3B | 7.8B | 8.4B | 7.8B |
| Revenue Growth YoY | +4.75% | +7.21% | +3.71% | +7.26% | +5.11% | +1.19% | +4.24% | +5.78% |
| Net Income | 1.1B | 1.1B | 1.4B | 1.2B | 1.3B | 1.3B | 1.1B | 1.0B |
| Net Income Growth YoY | -12.45% | -13.52% | +28.19% | +23.56% | +11.79% | +44.93% | -20.04% | -0.98% |
| EPS | $1.26 | $1.22 | $1.54 | $1.31 | $1.30 | $1.31 | $1.12 | $1.00 |
| EPS Growth YoY | -3.08% | -6.87% | +37.50% | +31.00% | +20.37% | +57.83% | -13.85% | +7.53% |
Profitability Metrics
Technical Analysis
PYPL is currently in a consolidation phase with price showing strength above key moving averages but exhibiting overbought RSI conditions. Though the trend remains bullish with a strong ADX, the recent death cross and overbought momentum suggest caution as the stock may be poised for a pullback or continued sideways action.
Watch for pullback
Price in uptrend
Strong trend active
Watching for cross
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
PayPal has demonstrated steady revenue and earnings growth over the past several quarters, supported by solid operating margins and strong cash flow generation. While the company faces competitive and regulatory challenges, its robust financial health and market position underpin a positive fundamental outlook.
Latest Earnings
Q2 2026 Earnings (Jun 30, 2026)
Earnings Per Share (EPS)
Actual
$1.38
Estimated
$1.28
Surprise
+$0.10
Surprise %
+7.81%
Revenue
Actual
$8.68B
Estimated
$8.47B
Surprise
+$208.6M
Surprise %
+2.46%
Historical Earnings
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $1.38 | $1.34 | $1.23 | $1.34 | $1.40 | $1.33 | $1.19 | $1.20 |
| EPS (Estimated) | $1.28 | $1.28 | $1.29 | $1.20 | $1.30 | $1.16 | $1.11 | $1.07 |
| EPS Surprise | +$0.10 | +$0.06 | -$0.06 | +$0.14 | +$0.10 | +$0.17 | +$0.08 | +$0.13 |
| % Diff | +7.8% | +4.7% | -4.7% | +11.7% | +7.7% | +14.7% | +7.2% | +12.1% |
| Revenue | ||||||||
| Revenue (Actual) | $8.68B | $8.35B | $8.68B | $8.42B | $8.29B | $7.79B | $8.37B | $7.85B |
| Revenue (Estimated) | $8.47B | $8.05B | $8.79B | $8.24B | $8.08B | $7.85B | $8.26B | $7.89B |
| Revenue Surprise | +$208.6M | +$303.09M | -$112.38M | +$180.89M | +$203.55M | -$58.07M | +$108.32M | -$40.79M |
| % Diff | +2.5% | +3.8% | -1.3% | +2.2% | +2.5% | -0.7% | +1.3% | -0.5% |
Valuation
PayPal Holdings (PYPL) currently trades at notably discounted valuation multiples relative to both its historical norms and peer group averages in the financial services sector. Despite modest revenue growth and manageable profitability pressures, the market seems cautious, keeping the stock in an oversold and undervalued position amid ongoing turnaround efforts and competitive headwinds.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 8.57 | 9.27 | 9.48 | 12.80 | 14.29 | 12.45 | 19.05 | 19.51 |
| Price to Sales | 4.45 | 4.94 | 6.26 | 7.71 | 8.69 | 8.26 | 10.17 | 10.09 |
| Price to Book | 1.95 | 2.06 | 2.68 | 3.21 | 3.56 | 3.18 | 4.17 | 3.93 |
| Enterprise Value to EBITDA | 23.59 | 25.14 | 28.54 | 35.53 | 40.71 | 35.01 | 50.35 | 48.99 |
| Enterprise Value to Revenue | 5.13 | 5.23 | 6.49 | 7.98 | 9.25 | 8.77 | 10.57 | 10.44 |
Sentiment & Analyst Ratings
PayPal's sentiment landscape is mixed with positive financial results and raised guidance offset by concerns over execution risks and competitive pressures. The stock showed a strong earnings beat and optimism about cost savings and turnaround initiatives, but market reaction has been cautious due to a softer Q3 outlook and bearish technical signals. Social sentiment includes skepticism from some retail investors regarding customer service and usability.
Analyst Recommendations
Risk Assessment
PayPal demonstrates moderate financial health with stable liquidity and manageable leverage but faces heightened risks from intense competition, regulatory scrutiny, and ongoing legal challenges. Despite recent positive earnings beats and raised guidance, margin pressure and execution risks cloud its outlook, resulting in a cautious market sentiment overall.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q2 2026
Quick Ratio
Latest Quarter: Q2 2026
Debt-to-Equity
Latest Quarter: Q2 2026
Debt-to-Assets
Latest Quarter: Q2 2026
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 1.29 | 1.26 | 1.29 | 1.34 | 1.33 | 1.30 | 1.26 | 1.25 |
| Quick Ratio | 1.29 | 1.26 | 1.29 | 1.34 | 1.33 | 1.30 | 1.26 | 1.25 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.72 | 0.47 | 0.49 | 0.56 | 0.56 | 0.56 | 0.48 | 0.49 |
| Debt-to-Assets | 0.17 | 0.12 | 0.12 | 0.14 | 0.14 | 0.14 | 0.12 | 0.12 |
Liquidity Assessment
Current Ratio: 1.29(Adequate)
Quick Ratio: 1.29(Strong)
The company has adequate liquidity but may face challenges in a downturn.
Solvency Assessment
Debt-to-Equity: 0.72(Moderate)
Debt-to-Assets: 0.17(Low)
The company maintains a balanced capital structure with manageable debt levels.
Frequently Asked Questions about PYPL
AI Answers: Common Questions About PYPL
Get AI-powered answers to the questions investors ask most about PayPal Holdings, Inc.
PayPal trades at a low P/E of 10.7 and P/S of 1.5, well below sector averages, with steady revenue growth of 4.5% YoY and EPS growth of 10-15%, making it a compelling buy for medium to long-term investors.
Short-term technical signals and mixed sentiment suggest caution; selling may be considered if price breaks below key support near $52 or if execution risks materialize, but fundamentals do not currently warrant a sell.
Key risks include competitive pressures, regulatory and legal challenges, margin compression, and execution risks related to strategic initiatives and innovation.
Upside targets near $58 to test resistance, with potential extension toward $65 if breakout occurs; downside support lies near $52 and critical support at $50 in case of correction.
The stock is undervalued with a P/E of 10.7 versus sector average around 25, EV/EBITDA in mid-single digits below peer range of 8-12x, reflecting market skepticism but offering potential for multiple expansion.
Strong fundamentals with stable gross margins around 45-47%, improving operating margins above 21%, consistent revenue and EPS growth, and solid cash flow generation underpin the investment case.
Currently in a consolidation phase with overbought RSI and a death cross indicating possible short-term pullback or sideways movement; price remains above key moving averages supporting underlying bullish trend.
Positive catalysts include Q2 earnings beat and raised guidance, AI and digital identity initiatives, cost savings programs, and potential takeover activity, all of which could drive stock appreciation.
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