PYPL · PayPal Holdings, Inc.
10-Q filed 2026-07-28 period 2026-06-30
76 Stable
confidence high · source filing on SEC.gov ↗
- Strategic reorganization announced in April 2026 is expected to deliver at least $1.5 billion in gross annualized run-rate savings over the next two to three years.
- Operating margin declined from 18% to 16% in Q2 2026 due to higher transaction expense growth rates, primarily driven by Braintree product mix.
- Share repurchases continued aggressively, with 33 million shares repurchased in Q2 2026, reducing outstanding shares to 862 million.
vs. prior filing (10-Q filed 2026-05-05) — ⚠ ALERT
FHS 80 → 76 (-4) · Strong -> Stable
Profitability -7Balance sheet -10Cash generation +5Risk flags -5Mgmt signal +0
Filing Health Score pillars
Profitability 25%
65
Net revenues grew 5% YoY to $8,682 million for the quarter, but operating margin declined from 18% to 16% due to higher transaction expense growth rates (MD&A - Overview of Results of Operations).
Balance sheet 20%
75
Cash and cash equivalents of $8,306 million and short-term investments of $2,950 million compare to total debt of $13,400 million, while outstanding shares decreased to 862 million due to repurchases (Financial Statements - Balance Sheets).
Cash generation 20%
85
Operating cash flow of $1,983 million for the quarter comfortably exceeded net income of $1,104 million, demonstrating strong cash conversion (Financial Statements - Statements of Cash Flows).
Risk flags 20%
80
The company faces evolving regulatory risks around cryptocurrency under the GENIUS Act of 2025 and ongoing litigation, but has no going-concern or restatement issues (Risk Factors).
Mgmt signal 15%
80
Management announced a strategic reorganization in April 2026 to simplify operations and accelerate AI adoption, targeting $1.5 billion in annualized savings (MD&A - Recent Developments).
Key metrics (Three Months Ended June 30, 2026)
period: Three Months Ended June 30, 2026
total debt: $13,400 million
cash and equivalents: $8,306 million
shares outstanding: 862 million
revenue: $8,682 million
net income: $1,104 million
operating cash flow: $1,983 million
Gemma triage notes (pre-analysis, second opinion)
None for this filing.Automated research summaries derived from SEC filings. Not investment advice.