PayPal Holdings Inc.
PYPLFinancial Snapshot
ticker: PYPL step: 04 generated: 2026-05-13 source: quick-research
PayPal Holdings, Inc. (PYPL) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | ~$27.5B | ~$29.8B | $31.8B | +6.8% |
| Gross Margin | ~45% | ~46% | ~47% | improving |
| Non-GAAP Operating Margin | ~18% | ~19% | ~20% | improving |
| GAAP Operating Income | ~$2.7B | ~$3.5B | ~$5.3B | +51% |
| Non-GAAP EPS | ~$3.98 | ~$4.98 | ~$5.95 | +19% |
FY2025: Revenue $33.172B (+4.3% YoY); operating income $6.065B (+14% YoY); gross margin ~47%; non-GAAP EPS ~$6.95 (+17% YoY). Branded checkout TPV +6%. Q4 2025: Revenue $8.68B (missed estimates of $8.80B); branded checkout volume growth slowed to 1% (vs. 7% prior year) — a major concern. FY2024: $6B in share repurchases. FY2026: $6B buyback program announced. Non-GAAP EPS compounding at 15–20% annually even on 4–7% revenue growth.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Free Cash Flow | ~$5.5–6.5B |
| Cash & Equivalents | ~$9–10B |
| Total Debt | ~$11–12B (primarily senior notes) |
| Shares Repurchased (FY2024) | ~92M shares ($6.0B) |
| Total Payment Volume (TPV) | ~$1.5–1.6T |
PayPal is a cash generation machine: $5–6B in annual FCF on $33B revenue (~17% FCF margin). The company prioritizes aggressive share buybacks — with 92M shares repurchased in FY2024 alone (~8% of the float), EPS grows 15–20% annually even as revenue grows only 5–7%. Net debt is modest relative to cash flow. BNPL receivables ($7B) were sold to Blue Owl in FY2025, reducing balance sheet risk.
Key Ratios (approximate)
- P/E: ~12–14x (non-GAAP) | EV/FCF: ~12x | FCF Yield: ~7–8%
- Revenue Growth (TTM): ~4–5% | Non-GAAP EPS Growth: ~17–20%
Growth Profile
PayPal is a mature, high-cash-flow compounder with a clear valuation gap: trading at ~12x non-GAAP EPS while compounding EPS at 15–20% annually — implying a significant PEG discount. Revenue growth is low-single-digits (the branded checkout is growing, but the mix shift toward low-margin Braintree PSP volume dilutes the take rate and headline revenue growth). The investment thesis is primarily capital allocation: at $6B/year in buybacks on a ~$70B market cap, PayPal retires ~8–9% of its float annually, creating mechanical EPS growth regardless of revenue trends.
Forward Estimates
- FY2026: Revenue ~$34–35B (+3–5% YoY); non-GAAP EPS ~$7.90–8.50 (+15–20% YoY)
- Free Cash Flow: ~$6–7B (targeting continued aggressive buybacks)
- Fastlane rollout: potential branded checkout acceleration in 2026–2027
- Analyst consensus PT: ~$54 (cautious) to $90 (bull); many analysts view as undervalued at ~$70
- Venmo ARPU expansion: pathway from $20 to $50+/user = major revenue catalyst
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $PYPL.