PayPal Holdings, Inc.(PYPL)Stock Analysis
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Rank #306 of 2,879 stocksTOP 25%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
PYPL Stock Analysis & AI Quality Score
AI stock analysis and institutional research for PayPal Holdings, Inc. (PYPL), a Financials sector company. 13F Pro's AI-powered ranking engine scores PYPL at 70.5/100 on a 32-signal composite quality model, placing it at rank #306 of 2,879 stocks — the top 25% of the AI-ranked universe. PYPL scores in the top quartile across revenue scale (95.8), profitability (79.6), balance sheet strength (75.6). Shareholder dilution risk is elevated at 33.4/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q1 2026), PayPal Holdings, Inc. reports quarterly revenue of $8.4B, net income of $1.1B, an operating margin of 17.8%. Top institutional holders of PYPL by reported 13-F value include BlackRock,, VANGUARD CAPITAL MANAGEMENT, STATE STREET, based on the most recent SEC filings. PYPL trades on the Nasdaq exchange and files with the SEC under CIK 1633917. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate PYPL daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for PayPal Holdings, Inc. directly from SEC EDGAR. PayPal Holdings, Inc.'s 13F Pro composite quality score has ranged between 8 and 81 since 2021, currently 70.5 — a declining long-term trajectory across 56 quarterly and live scoring snapshots.
What's Driving PYPL's Business? Latest 10-Q Breakdown
✓ 17/17 datapoints verifiedAI-extracted from PayPal Holdings, Inc.'s 10-Q filed 2026-05-05 — Q1 2026 (quarter ended March 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
PayPal reported Q1 2026 net revenues of $8.4B (+7% YoY) on 11% TPV growth, but net income fell 14% to $1.1B due to strategic investment losses and higher transaction expenses.
Biggest Revenue Drivers
Total revenue: $8.353B+7% YoY
Growth driven by 11% increase in TPV and higher number of payment transactions, partially offset by unfavorable hedging impact.
Increase primarily from $90M in revenue from partner institution credit programs and $40M in interest/fee revenue from loans receivable portfolios.
Largest Expense Items
Higher TPV growth and unfavorable product mix shift toward Braintree (higher expense rates) drove the increase.
Comprised of $276M transaction losses and $102M credit losses; transaction loss rate remained stable at 0.06% of TPV.
Increased due to higher employee costs, software maintenance, depreciation/amortization, and contractor/consulting costs.
Rise primarily from increased employee-related and contractor/consulting costs.
Margins: Operating margin contracted to 18% from 20% YoY, driven by transaction expense growth outpacing revenue growth due to unfavorable product mix shift toward higher-cost Braintree offerings. The company expects $1.5B in annualized gross cost savings from a 2Q 2025 restructuring program over 2-3 years.
Watch Items from the Filing
- Strategic investment losses of $101M in Q1 2026 vs. $48M gains in Q1 2025—a $150M swing that materially reduced net income; portfolio volatility expected to continue.
- Transaction expense rate rose to 0.90% from 0.89% YoY; unfavorable product mix (higher Braintree proportion) pressuring margins despite merchant mix benefits.
- Active accounts grew only 1% YoY to 439M; payments per account fell 1% YoY to 58.7, signaling potential customer engagement plateau.
- Multiple pending securities class actions and shareholder derivative lawsuits alleging disclosure failures on branded checkout growth impediments; several recent filings in early 2026.
- Q2 2025 restructuring plan targeting $280M annualized savings from workforce optimization and cloud migration; plan extends to 2028 with execution risk.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q1 2026
$8.4B
Net Income
Q1 2026
$1.1B
Free Cash Flow
Q1 2026
$903.0M
Operating Margin
Q1 2026
17.8%
D/E Ratio
Q1 2026
0.54
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+11.4% YoYNet Income
+23.2% YoYOperating Income
+20.6% YoYEPS (Diluted)
+40.9% YoYTotal Assets
-2.4% YoYTotal Debt
+3.2% YoYOp. Cash Flow
+32.5% YoY| Metric | FY 2025 | FY 2023 | FY 2021 | FY 2020 | FY 2016 | FY 2014 |
|---|---|---|---|---|---|---|
| Revenue | $33.17B +11.4% | $29.77B +17.3% | $25.37B +18.3% | $21.45B +97.9% | $10.84B +35.1% | $8.03B |
| Net Income | $5.23B +23.2% | $4.25B +1.8% | $4.17B -0.8% | $4.20B +199.9% | $1.40B +234.4% | $419.0M |
| Operating Income | $6.07B +20.6% | $5.03B +18.0% | $4.26B +29.6% | $3.29B +107.4% | $1.59B +25.1% | $1.27B |
| EPS (Diluted) | $5.41 +40.9% | $3.84 +9.1% | $3.52 -0.6% | $3.54 +207.8% | $1.15 +238.2% | $0.34 |
| Total Assets | $80.17B -2.4% | $82.17B +8.4% | $75.80B +7.7% | $70.38B +112.6% | $33.10B +51.0% | $21.92B |
| Total Debt | $9.99B +3.2% | $9.68B +20.2% | $8.05B -10.0% | $8.94B | — | — |
| Operating Cash Flow | $6.42B +32.5% | $4.84B -16.5% | $5.80B -6.8% | $6.22B +96.9% | $3.16B +42.3% | $2.22B |
AI Insight: PYPL Financial Trends
PayPal's operating income held a tight $1,488M–$1,530M range over the past year while revenue grew 7% YoY in Q1 2026, but a sharp debt jump and weak operating cash flow signal near-term pressure.
• Revenue grew from $7,791M in Q1 2025 to $8,353M in Q1 2026, a 7.2% year-over-year increase.
• Operating income expanded from $1,325M in Q2 2024 to a peak of $1,530M in Q1 2025, then stabilized around $1,488M–$1,520M through Q1 2026.
• Net income declined from $1,437M in Q4 2025 to $1,113M in Q1 2026, reversing a multi-quarter high.
• Operating cash flow fell sharply to $1,134M in Q1 2026 from $2,384M in Q4 2025, continuing a recurring Q1 seasonal trough pattern.
⚠ Total debt rose to $10,876M in Q1 2026, up from $9,987M in Q4 2025 — reversing the prior quarter's deleveraging.
⚠ Operating cash flow of $898M in Q2 2025 and $1,134M in Q1 2026 represent the two weakest readings in the dataset.
⚠ Equity has been broadly flat near $20.0B–$20.6B across all eight quarters, suggesting buybacks offset retained earnings.
AI Insight: PYPL Ratio Trends
PayPal's ROIC has durably re-rated from 17.5% to ~19–20% since Q2 2024, but Q1 2026 margin compression signals the strong Q4 2025 quarter was a high-water mark.
• ROIC expanded from 17.5% in Q2 2024 to 20.0% in Q4 2025, a durable 2.5pp improvement over six quarters.
• ROE surged to 28.4% in Q4 2025 — the cycle peak — then retreated sharply to 22.2% in Q1 2026.
• Operating margin peaked at 19.6% in Q1 2025 but has trended back toward 17–18% range through Q1 2026.
• D/E has oscillated narrowly between 0.47 and 0.56 with no sustained directional move, indicating stable leverage.
⚠ Net profit margin fell from 16.6% in Q4 2025 to 13.3% in Q1 2026 — sharpest sequential drop in the dataset.
⚠ ROA dropped from 7.2% in Q4 2025 to 5.5% in Q1 2026; watch whether asset efficiency recovers or keeps fading.
⚠ D/E ticked back up to 0.54 in Q1 2026 after Q4 2025's deleveraging to 0.49 — monitor debt trajectory.
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Top Institutional Holders of PYPL
BlackRock, Inc.
$3.3B73,680,955 shVANGUARD CAPITAL MANAGEMENT LLC
$2.5B55,996,368 shSTATE STREET CORP
$1.9B41,983,584 shGEODE CAPITAL MANAGEMENT, LLC
$1.2B26,148,714 shComprehensive Financial Management LLC
$1.2B25,996,118 shBANK OF AMERICA CORP /DE/
$1.2B25,614,720 shVANGUARD PORTFOLIO MANAGEMENT LLC
$1.1B25,316,688 shSUSQUEHANNA INTERNATIONAL GROUP, LLP
$1.1B23,580,000 shGreat Hill Capital LLC
$850.6M8,953,700 shAmundi
$624.4M13,804,208 sh
| Fund | Value | Shares |
|---|---|---|
| BlackRock, Inc. | $3.3B | 73,680,955 |
| VANGUARD CAPITAL MANAGEMENT LLC | $2.5B | 55,996,368 |
| STATE STREET CORP | $1.9B | 41,983,584 |
| GEODE CAPITAL MANAGEMENT, LLC | $1.2B | 26,148,714 |
| Comprehensive Financial Management LLC | $1.2B | 25,996,118 |
| BANK OF AMERICA CORP /DE/ | $1.2B | 25,614,720 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | $1.1B | 25,316,688 |
| SUSQUEHANNA INTERNATIONAL GROUP, LLP | $1.1B | 23,580,000 |
| Great Hill Capital LLC | $850.6M | 8,953,700 |
| Amundi | $624.4M | 13,804,208 |
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Popular Research
Is PYPL a good stock to buy?
13F Pro's AI-powered analysis of PayPal Holdings, Inc. (PYPL) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Financials sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for PYPL are available on the PYPL stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own PYPL?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling PYPL. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of PayPal Holdings, Inc.'s investment landscape.