PayPal Holdings Inc

Q2 performance beat expectations; improving profitability momentum - Revenue +5% YoY (+3% currency-neutral); Total Payment Volume $486B, +9% currency-neutral. - Transaction margin (TM) dollars grew +1% overall; TM dollars ex interest on customer balances +3% (driven by Venmo monetization, strong Credit, Braintree improvement; also FX favorability and lower losses more than offset higher investments). - Non-GAAP EPS $1.38, above guidance, -1% YoY (benefited from stronger TM dollars and lower effective tax rate). - Free cash flow strong: Adjusted free cash flow $1.8B (excluding timing impact from PayPal credit receivables origination/sale).

Guidance raised for FY2026 (key upside) + improving branded checkout outlook - Transaction margin dollars (full-year) now expected ~$15.6B (or ~$14.5B ex interest on customer balances), raised from prior outlook. - Non-GAAP EPS raised to $5.38 (from earlier guidance). - Online branded checkout TPV growth outlook raised to low single-digit TPV growth (currency-neutral). - Q3 outlook: low single-digit revenue growth (currency-neutral), slightly positive to low-single-digit TM ex interest, nontransaction OpEx high single-digit, non-GAAP EPS down within a low single-digit range.

Cash returns / capital allocation remains strong - $1.5B share repurchases completed in Q2; trailing 12-month buybacks ~$6B. - Company expects ~$6B adjusted free cash flow and ~$6B share repurchases for FY2026 (per guidance assumptions). - Liquidity: ended the quarter with $15.3B cash/cash equivalents/investments vs $13.4B debt.