PayPal (NASDAQ: PYPL) Q2 Earnings Beat Expectations, Analyst Raises Price Target

• PayPal's Q2 2026 financial results surpassed analyst estimates, with revenues reaching $8.68 billion and EPS at $1.38.
• RBC Capital reiterated an "Outperform" rating for PayPal stock, increasing its price target to $65.00, signaling strong analyst confidence.
• Growth was fueled by a 10% rise in Total Payment Volume (TPV) to $486.45 billion, supported by strong performance from Venmo and Braintree, alongside a planned $1.50 billion share buyback.

PayPal (NASDAQ: PYPL) is a global digital payments company that allows individuals and businesses to send and receive money electronically. Its services include the main PayPal platform, the peer-to-peer payment app Venmo, and the payment gateway Braintree. The company recently rejected a $53.00 billion takeover offer from competitor Stripe, signaling confidence in its own value.

This confidence is shared by analyst firm RBC Capital, which reiterated its "Outperform" rating for PayPal on July 29, 2026. The firm also increased its price target for the stock to $65.00 from $59.00. A price target is an analyst's projection of a stock's future price, and an increase suggests a more positive outlook for investment.

The rating update follows PayPal's strong second-quarter 2026 results. The company reported revenues of $8.68 billion, a 5% year-over-year increase that beat estimates. It also posted earnings per share (EPS) of $1.38. EPS represents the company's profit divided by its number of shares, and this figure beat analyst expectations by 7.81%.

This financial performance is driven by strong growth in Total Payment Volume (TPV), which is the total value of all transactions processed by the company. TPV grew 10% to $486.45 billion. As highlighted by Zacks, this growth was helped by a 14% increase in Venmo's TPV and strong mid-teen growth from Braintree.

Looking forward, PayPal has raised its outlook for both EPS and TPV for the full year 2026. The company also plans to buy back $1.50 billion of its own stock. A share buyback reduces the number of shares on the market, which can help increase the value for remaining shareholders.