PayPal projects $6 billion in free cash flow for fiscal year 2026. This capital funds a transformation involving $1.5 billion in cost reductions driven by AI and organizational changes. The company also allocates funds for platform modernization and share buybacks.
First-quarter revenue increased. Total user accounts declined to 439 million. Transaction take rates and operating margins compressed.
PayPal forecasts a 9% year-over-year earnings decline for the second quarter.