PayPal Raises Profit Forecast and Rejects $53 Billion Takeover Bid

PayPal Holdings Inc. reported second-quarter 2026 financial results that exceeded Wall Street expectations, posting revenue of $8.68 billion and adjusted earnings of $1.38 per share. Total payment volume increased 10% year over year to $486.4 billion. Following these results, the company raised its full-year 2026 adjusted earnings per share forecast to approximately $5.38, up from a previous estimate of $5.31.

These financial gains come as the company navigates a $53 billion takeover bid from Stripe Inc. and Advent International L.P., which offered $60.50 per share. PayPal's board rejected the offer on July 20, reportedly seeking a price closer to $70 per share. While the board deemed the current bid inadequate, CEO Enrique Lores stated the company would consider offers that create superior value for shareholders.

Enrique Lores, who took over as CEO in February, is leading a transformation strategy focused on AI integration and organizational streamlining. The plan aims to achieve $400 million in savings by the end of the year and at least $1.5 billion in gross run-rate savings over two to three years. Lores cited the stabilization of branded checkout and growth within Venmo and Braintree as evidence of the strategy's progress.