PayPal leaves the door open to a higher takeover offer following earnings beat

PayPal is seemingly inactive unfastened to Stripe’s $53.4 cardinal takeover bid, conscionable not astatine the terms the second had offered.

On the company’s Q2 2026 net telephone connected Tuesday, PayPal CEO Enrique Lores didn’t afloat unopen down the thought of a deal, saying the institution would see a way that created “superior value” for its shareholders.

While that’s not the aforesaid arsenic saying, “PayPal’s not for sale,” it inactive suggests the institution doesn’t judge Stripe and Advent International’s current connection of $60.50 per share values it correctly, particularly aft the institution reported better-than-expected nett and revenue, and said it had made advancement connected its turnaround strategy.

An investigation from fiscal services steadfast Cantor valued PayPal astatine person to $70 per share. The company’s shares are presently trading astatine astir $58.

PayPal reported adjusted nett of $1.38 per share, beating expectations of $1.28 per share. Revenue was up 5% year-over-year to $8.68 billion, supra estimates of $8.47 billion. And adjusted escaped currency travel of $1.8 cardinal gives the institution country to proceed investing successful its products and strategy.

That doesn’t mean PayPal would locomotion distant from a takeover bid.

While Lores didn’t straight code Stripe’s offer, saying PayPal doesn’t remark connected imaginable mergers oregon marketplace speculation, helium did admit that a viable M&A bid would not beryllium dismissed outright.

“If we spot levers oregon a way that we judge would make superior worth for our shareholders than executing our existent strategy, we would, of course, cautiously see them,” helium told investors connected Tuesday.

PayPal is inactive engaged with its AI-focused turnaround, which included a restructuring exercise to streamline its operations into 3 segments: checkout solutions and PayPal; user fiscal services (and Venmo); and outgo services and crypto. The institution has said it volition make further outgo savings arsenic it embraces AI successful areas similar coding, lawsuit service, enactment operations, and hazard management.

Lores offered an update connected this strategy connected Tuesday, saying the institution was “making bully progress” connected its program to present astatine slightest $1.5 cardinal successful gross run-rate savings implicit the adjacent 2 to 3 years. He besides said PayPal is connected way to region 3 organizational layers crossed the company, and is continuing to modernize its technology. This past spot includes migrating from its information halfway to the cloud, gathering a much modular and scalable architecture, and reducing level complexity.

“We judge that executing the translation strategy I person outlined volition make important worth for shareholders. That remains our focus,” Lores said. “While determination is inactive important enactment ahead. I person beardown condemnation successful our absorption and successful our quality to execute.”