IT News on October 27th, PayPal has released its report for the first three quarters of the fiscal year 2026 (January 2026 to September 2026) as well as the third quarter report (July 2026 to September 2026) today:

• Total operating revenue: $25.619 billion (equivalent to approximately 171.231 billion yuan at current exchange rates), a year-on-year increase of 4.6%
• Net profit attributable to shareholders of the parent company: $3.29 billion (approximately 21.99 billion yuan at current exchange rates), a year-on-year decrease of about 13.3%
• Operating cash flow: $4.709 billion (equivalent to approximately 31.474 billion yuan at current exchange rates)
• Basic earnings per share: $3.74 (current exchange rate is approximately 25 RMB)
• Diluted earnings per share: $3.71 (current exchange rate is approximately 24.8 RMB)
• Debt-to-asset ratio: 76.13%

• Total operating revenue: $8.584 billion (approximately 57.373 billion yuan at current exchange rates), a year-on-year increase of 2% and a month-on-month decrease of about 1%.
• Gross transaction profit: $3.95 billion (equivalent to approximately 26.401 billion yuan at current exchange rates), a year-on-year increase of 2%
• Transaction profit margin: 46%
• Net profit attributable to shareholders of the parent company: $1.073 billion (approximately 7.172 billion yuan at current exchange rates), a year-on-year decrease of 14%
• Operating cash flow: $1.592 billion (approximately RMB 10.641 billion at current exchange rates), a year-on-year decrease of 19%
• Free cash flow: $1.431 billion (approximately 9.564 billion RMB at current exchange rates), a year-on-year decrease of 17%.
• Basic earnings per share: $1.26 (current exchange rate is approximately 8.4 RMB)
• Diluted earnings per share: $1.25 (current exchange rate is approximately 8.4 RMB), a year-on-year decrease of 4%
• Debt-to-asset ratio: 76.1%

The company stated that the cumulative performance for the first three quarters of the fiscal year 2026 generally met the expectations of market institutions, with Non-GAAP experiencing an 8% increase in earnings per share. PayPal is a globally leading digital payment platform that serves approximately 200 markets, providing consumers and merchants with digital financial services such as payments, transfers, and checkout.

In the first three fiscal quarters, the company achieved a cumulative net revenue of $25.619 billion (approximately 171.231 billion yuan at current exchange rates), representing a year-on-year increase of 4.6%; GAAP net profit attributable to the parent company was $3.29 billion (about 21.99 billion yuan at current exchange rates), which decreased by 12.9% year-on-year, mainly due to non-recurring expenses such as restructuring costs. The cumulative net cash flow from operating activities in the first three fiscal quarters was $4.709 billion (approximately 31.474 billion yuan at current exchange rates), indicating that the overall cash flow remained stable.

In terms of third-quarter performance, net revenue amounted to $8.584 billion (approximately 57.373 billion yuan at current exchange rates), a year-on-year increase of 2%, and a 1% increase at a fixed exchange rate. GAAP Net profit attributable to the parent company was $1.073 billion (approximately 7.172 billion yuan at current exchange rates), a year-on-year decrease of 14%; Non-GAAP Net profit was $1.245 billion (approximately 8.321 billion yuan at current exchange rates), a year-on-year decrease of 3%. GAAP Diluted earnings per share were $1.25 (approximately 8.4 yuan at current exchange rates), a year-on-year decrease of 4%; Non-GAAP Diluted earnings per share were $1.45 (approximately 9.7 yuan at current exchange rates), a year-on-year increase of 8%.

Single-quarter gross trading profit was $3.95 billion (approximately RMB 26.401 billion at current exchange rates), a year-on-year increase of 2%, with the gross margin remaining stable at 46%. Single-quarter net cash flow from operating activities was $1.592 billion (approximately RMB 10.641 billion at current exchange rates), a year-on-year decrease of 19%; free cash flow was $1.431 billion (approximately RMB 9.564 billion at current exchange rates), a year-on-year decrease of 17%.

Regarding the outlook for the next quarter and the full year, the company has raised its estimates for the annual Non-GAAP transaction profits and the Non - GAAP EPS range for 2026, while maintaining the GAAP EPS range:

• Fourth quarter GAAP EPS is expected to be around $1.37 (current exchange rate is approximately 9.2 RMB), Non - GAAP EPS is expected to be around $1.43 (current exchange rate is approximately 9.6 RMB).
• For the whole year of 2026, GAAP EPS is expected to be around $5.07 (at the current exchange rate, approximately 33.9 RMB), and Non - GAAP EPS is expected to be around $5.6 (at the current exchange rate, approximately 37.4 RMB), which is an upward adjustment from the previous guidance of $5.38 given in July.

As of September 30, 2026, the company's cash, cash equivalents, and investments totaled 15.1 billion US dollars (approximately 100.925 billion RMB at current exchange rates), while the total amount of interest-bearing debt was 13.5 billion US dollars (about 90.231 billion RMB at current exchange rates). In a single quarter, the company returned 1.5 billion US dollars (approximately 10.026 billion RMB at current exchange rates) to shareholders through stock repurchases and announced a cash dividend of 0.14 US dollars per share (about 0.94 RMB per share at current exchange rates), maintaining a stable level of overall shareholder returns.