Software shares continue to feel the impact of AI uncertainty, with news coming out about job cuts at PayPal and Coinbase as well as disappointing commercial sales from Palantir. Lauren Webster, managing director in the technology investment banking group at Piper Sandler, discusses the market moves with Caroline Hyde on “Bloomberg Tech.
PayPal tops Q1 estimates as TPV jumps 11% and revenue climbs, signaling strong platform momentum despite operating margin pressure and softer engagement trends.
PayPal Holdings Inc (NASDAQ:PYPL, XETRA:2PP) shares fell about 9% after the company delivered first quarter 2026 results that beat expectations, along with a more cautious near-term outlook that weighed on sentiment. PayPal said it expects non-GAAP EPS to fall approximately 9%, compared with Wall Street expectations for a decline closer to 4%.
PayPal (PYPL) is a contrarian buy under $45, trading at less than 9x FWD earnings, despite recent underperformance and market skepticism. Q1 delivered a double beat: adjusted EPS of $1.34 (vs. $1.27 expected) and $8.4B revenue (up 7% YoY), with TPV up 11% YoY. PYPL is restructuring into three business units, targeting $1.5B in gross run rate savings over 2-3 years and integrating AI for modernization.
PayPal is looking towards the future, despite its falling stock and looming layoffs. In its first-quarter earnings call, CEO Enrique Lores told investors that PayPal needs to “recommit to the fundamentals,” which included “becoming a technology company again.
PayPal Holdings, Inc. (PYPL) Q1 2026 Earnings Call Transcript
While the top- and bottom-line numbers for Paypal (PYPL) give a sense of how the business performed in the quarter ended March 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
PayPal Holdings Inc (NASDAQ:PYPL) stock is sharply lower today, last seen down 11% at $44.84, brushing off better-than-expected first-quarter earnings and revenue.
PayPal's first-quarter earnings announcement, conference call commentary and guidance Tuesday (May 5) described a company in the midst of an overhaul. Enrique Lores, newly ascended to the CEO role, is moving to reconfigure the network, sharpen the consumer proposition and place artificial intelligence at the center of how the platform operates.
PayPal Holdings (NASDAQ:PYPL | PYPL Price Prediction) shares are tumbling roughly 10% in early trading Tuesday morning to about $45.50, after the company reported a Q1 2026 earnings beat alongside a soft Q2 outlook.
Paypal (PYPL) came out with quarterly earnings of $1.34 per share, beating the Zacks Consensus Estimate of $1.27 per share. This compares to earnings of $1.33 per share a year ago.
Shares of PayPal Holdings Inc. (NASDAQ: PYPL) fell sharply in premarket trading, down more than 10%, despite the company reporting first-quarter results that exceeded analyst expectations. The decline reflects investor concern over its near-term earnings outlook and ongoing restructuring efforts under new leadership.