KeyCorp Has Bullish Outlook for PayPal FY2026 Earnings

Key Points

• KeyCorp raised PayPal’s FY2026 EPS estimate to $5.61 from $5.40, above the $5.58 consensus forecast, and projected FY2027 EPS of $5.93.
• PayPal’s latest quarterly results beat expectations on earnings, reporting $1.45 EPS versus the $1.31 consensus, though revenue of $8.58 billion fell short of estimates and grew just 2% year over year.
• Analyst sentiment remains cautious: PayPal has an overall “Hold” rating and a $55.94 consensus price target, despite the stock opening at $57.01 and the company maintaining a quarterly dividend of $0.14 per share.

PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) - Investment analysts at KeyCorp raised their FY2026 earnings estimates for PayPal in a research report issued to clients and investors on Tuesday, October 27th. KeyCorp analyst A. Schmidt now expects that the credit services provider will earn $5.61 per share for the year, up from their prior estimate of $5.40. The consensus estimate for PayPal's current full-year earnings is $5.58 per share. KeyCorp also issued estimates for PayPal's Q4 2026 earnings at $1.44 EPS and FY2027 earnings at $5.93 EPS.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its quarterly earnings data on Tuesday, October 27th. The credit services provider reported $1.45 earnings per share for the quarter, beating the consensus estimate of $1.31 by $0.14. The firm had revenue of $8.58 billion for the quarter, compared to analysts' expectations of $8.71 billion. PayPal had a net margin of 13.78% and a return on equity of 24.39%. The business's quarterly revenue was up 2.0% on a year-over-year basis. During the same quarter last year, the company posted $1.34 EPS.

Other equities research analysts also recently issued research reports about the stock. Truist Financial boosted their price objective on shares of PayPal from $53.00 to $58.00 and gave the company a "hold" rating in a research report on Friday, October 23rd. Jefferies Financial Group raised PayPal from a "hold" rating to a "buy" rating in a report on Tuesday, July 28th. Bank of America increased their price target on shares of PayPal from $53.00 to $54.00 and gave the stock an "underperform" rating in a research report on Wednesday. Evercore set a $45.00 price objective on PayPal in a report on Tuesday, October 27th. Finally, UBS Group decreased their price target on PayPal from $61.00 to $60.00 and set a "neutral" rating on the stock in a research note on Wednesday. Eight investment analysts have rated the stock with a Buy rating, thirty-one have given a Hold rating and six have given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $55.94.

PayPal Stock Performance

NASDAQ PYPL opened at $57.01 on Monday. The business has a 50 day moving average price of $55.36 and a 200-day moving average price of $50.04. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.56. The company has a market cap of $47.36 billion, a price-to-earnings ratio of 10.88, a P/E/G ratio of 1.20 and a beta of 1.33. PayPal has a 52 week low of $38.46 and a 52 week high of $70.35.

Institutional Trading of PayPal

Hedge funds have recently made changes to their positions in the company. Covestor Ltd grew its position in PayPal by 35.8% in the 3rd quarter. Covestor Ltd now owns 3,949 shares of the credit services provider's stock worth $207,000 after purchasing an additional 1,040 shares during the last quarter. Rakuten Investment Management Inc. raised its stake in PayPal by 7.4% in the 3rd quarter. Rakuten Investment Management Inc. now owns 226,620 shares of the credit services provider's stock valued at $12,213,000 after acquiring an additional 15,668 shares during the period. First Nebraska Trust Co bought a new position in shares of PayPal during the third quarter valued at approximately $1,690,000. VCI Wealth Management LLC bought a new position in PayPal in the 3rd quarter worth $1,144,000. Finally, Greenfield Seitz Capital Management LLC purchased a new stake in shares of PayPal in the 3rd quarter worth $216,000. 68.32% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, insider Suzan Kereere sold 3,379 shares of the stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $55.72, for a total transaction of $188,277.88. Following the sale, the insider owned 30,983 shares of the company's stock, valued at approximately $1,726,372.76. This represents a 9.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 552 shares of the firm's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $54.80, for a total transaction of $30,249.60. Following the completion of the transaction, the chief accounting officer owned 2,400 shares in the company, valued at $131,520. The trade was a 18.70% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 13,437 shares of company stock valued at $768,417 over the last quarter. 0.63% of the stock is owned by corporate insiders.

PayPal Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 24th. Investors of record on Friday, December 4th will be issued a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Friday, December 4th. PayPal's dividend payout ratio (DPR) is 10.69%.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal’s earnings-call commentary highlighted progress in diversifying beyond its traditional checkout business, including growth in financial services, strong Venmo engagement, product expansion and continued cost discipline. These developments suggest improving operating execution and helped support the stock. The 5 most interesting analyst questions from PayPal’s Q3 earnings call
• Positive Sentiment: PayPal remains viewed as a potentially attractive value stock: commentary points to ongoing revenue growth, robust free cash flow and substantial share-repurchase capacity. Its relatively low valuation could provide downside support if the turnaround gains traction. Is PayPal Stock a Value or a Value Trap?
• Neutral Sentiment: KeyCorp raised its 2027 EPS forecasts for the first and third quarters but lowered its fourth-quarter estimate, leaving the overall earnings outlook mixed rather than materially changed.
• Neutral Sentiment: PayPal is included among financial-transaction companies that could benefit from resilient consumer spending, cross-border payments and strategic acquisitions. However, rising technology costs and inflation remain industry-wide risks. 5 Financial Transaction Stocks to Watch Amid Cost and Inflation Pressure
• Negative Sentiment: Barclays downgraded PayPal to Underweight and cut its price target to $53 from $56, citing slowing growth in core checkout, secular pressure on the branded button and a lower likelihood of a takeover. Barclays lowers PayPal stock to Underweight on slowing fundamentals
• Negative Sentiment: Several firms, including Canaccord Genuity, Needham, BTIG and Bernstein, maintained Hold or Neutral views, while Citigroup lowered its expectations. The broad lack of bullish analyst conviction continues to weigh on sentiment.

PayPal Company Profile

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and businesses to send, receive, and manage money online and through mobile devices. Its services support online checkout, peer-to-peer payments, money transfers, payment processing, invoicing, and other commerce-related transactions.

The company's portfolio includes the PayPal and Venmo brands, Braintree's payment processing technology, and Xoom's international money transfer service. PayPal also offers merchant tools, digital wallets, payment solutions, and consumer financing products through its platform and related services.

PayPal traces its origins to 1998 and became an independent publicly traded company after separating from eBay in 2015.

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