# 10-Q report from Paypal Holdings, Inc. (PYPL) — 3Q 2026 Results — PYPL

> Company: Paypal Holdings, Inc. (PYPL)
> Form: 10-Q · Period: 3Q 2026 Results — PYPL
> Publication date: 2026-10-27
> Official source: [SEC EDGAR Filing](https://www.sec.gov/Archives/edgar/data/1633917/000163391726000088/pypl-20260930.htm)
> Download PDF: https://cifraresearch.com/api/reports/92f16d0b-0ca0-49ef-b9f9-ffb76259c8a5.pdf
> Canonical URL: https://cifraresearch.com/en/informe/PYPL/2026-Q3

## LAST 3 MONTHS

### Sales and Income Statement
- **BPA / EPS:** $1.28
- **Shares outstanding:** 837M

| Concept | Current | Previous | Change |
|---|---|---|---|
| Sales | 8584M | 8417M | +1.98 % |
| Gross Profit | 4336M | 4354M | -0.41 % |
| Operating Income | 1402M | 1520M | -7.76 % |
| EBT | 1374M | 1533M | -10.37 % |
| Net Income | 1073M | 1248M | -14.02 % |

### Cash Flow

| Concept | Normal | Normalized |
|---|---|---|
| Cash Flow | 1592 | 2208.9 |
| CAPEX | 161 | 161 |
| FCF | 1431 | 2047.9 |
| FCF/Share | 1.71 $ | 2.45 $ |
| Dividend | 118 | 118 |
| Free | 1313 | 1929.9 |

**Scenarios:** Normal (WC=-710) · Normalized*1 (WC=-93)

> *1: WC = average of the last 10 fiscal years: -5.5%. As it is quarterly, the annual amount is divided by 4 = -93.1M. Deviation of reported working capital (-710M) versus theoretical WC (-93.1M): __-616.9M__. Cash Flow after the working capital adjustment is: 1592M - (__-616.9M__) = 2208.9M.

### Capital Allocation

| Concept | Amount |
|---|---|
| Free | 1313 |
| Short-term investments*2 | -170 |
| Buybacks | -1501 |
| Cash*2 | 1146 |
| Debt*2 | 72 |
| Total | 860 |

**Verification:** Does not reconcile: +860M remain unexplained between free capital and the identified uses. The gap corresponds to unmapped line items or to non-cash movements and balance sheet reclassifications (restricted cash, foreign exchange effect on cash, debt assumed in acquisitions or reclassifications between cash and investments) that should be reviewed in the cash flow and balance sheet notes of the report.

> *1: Balance debt: 13400M -> 13472M (+72M). Net debt: 2144M -> 3192M (+1048M). Balance cash: 8306M -> 7160M (-1146M); cash decreased: source of liquidity (+); Cash row = 1146M.
> *2: Short-term investments: change in the balance of marketable securities (2950M -> 3120M), net of -170M due to purchases exceeding sales (use of capital).

## FULL YEAR TO DATE (9 MONTHS)

### Sales and Income Statement
- **BPA / EPS:** $3.93
- **Shares outstanding:** 837M

| Concept | Current | Previous | Change |
|---|---|---|---|
| Sales | 25619M | 24496M | +4.58 % |
| Gross Profit | 12821M | 12761M | +0.47 % |
| Operating Income | 4317M | 4554M | -5.2 % |
| EBT | 4077M | 4665M | -12.6 % |
| Net Income | 3290M | 3796M | -13.33 % |

### Cash Flow

| Concept | Normal | Normalized |
|---|---|---|
| Cash Flow | 4709 | 3912.8 |
| CAPEX | 600 | 600 |
| FCF | 4109 | 3312.8 |
| FCF/Share | 4.91 $ | 3.96 $ |
| Dividend | 370 | 370 |
| Free | 3739 | 2942.8 |

**Scenarios:** Normal (WC=-768) · Normalized*1 (WC=-279)

> *1: WC = average of the last 10 fiscal years: -5.5%. As it is quarterly, the annual amount is divided by 4 per quarter: -279.5M over 9 months. Deviation of reported working capital (-768M) versus theoretical WC (-279.5M): __-488.5M__. Cash Flow after the working capital adjustment is: 4709M - (__-488.5M__) = 5197.5M.
> *2: Taxes: The company should have paid 937.7M in taxes (23% on adjusted EBT of 4077M) and has only paid 420M in cash according to the cash flow statement. Adjustment of __-517.7M__ to Normalized Cash Flow for the tax discrepancy.
> *3: Stock Options / Share-based compensation (SBC): The company reports 767M in share-based compensation added back to operating cash flow. Assuming effective shareholder dilution and given that it is usually granted at a discount, under a conservative approach the full amount of this line item is deducted (__-767M__) from Normalized Cash Flow. The final figure combines the three adjustments to Cash Flow: **4709M __+488.5M__ (working capital) __-517.7M__ (taxes) __-767M__ (stock options) = 3912.8M.**

### Capital Allocation

| Concept | Amount |
|---|---|
| Free | 3739 |
| Short-term investments*2 | -4337 |
| Acquisitions*3 | -122 |
| Buybacks | -4553 |
| Cash*1 | 889 |
| Debt*1 | 1889 |
| Restricted cash (escrow)*4 | 3040 |
| Total | 545 |

**Verification:** More or less reconciles. Even so, there may be some detail I have missed.

> *1: Balance debt: 11583M -> 13472M (+1889M). Net debt: 1161M -> 3192M (+2031M). Balance cash: 8049M -> 7160M (-889M); cash decreased: source of liquidity (+); Cash row = 889M.
> *2: Short-term investments: net flow of marketable securities for the period (purchases of 18555M versus sales of 14218M), net of -4337M (use of capital).
> *3: Acquisitions: 122M was allocated to the purchase of a company (total price of 134M), completed in the first quarter of 2026 and paid mainly in cash (use of funds).
> *4: Restricted cash goes from 15969M to 12929M; the release of 3040M financed the acquisition in the period (122M).

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*Análisis generado con IA por Cifra (https://cifraresearch.com) a partir de la fuente primaria en SEC EDGAR. Fines informativos, no constituye recomendación de inversión.*