PayPal lifts cost focus after muted checkout growth, shares trade below recent highs

By Anna Wagner, Analysts & Consensus desk. Reviewed prior to publication on 2026-06-23, 07:38.

PayPal Holdings Inc (US70450Y1038) remains in analyst focus on NASDAQ after its latest quarterly numbers showed only modest progress in branded checkout while management sharpened its cost-efficiency and AI agenda. The stock continues to trade clearly below its 52-week high, even as total payment volume and earnings grew in the first quarter, according to recent market commentary.

What recent figures show

In the first quarter of 2026, PayPal reported total payment volume of roughly 464 billion US dollars, up about 8 percent on a currency-neutral basis versus the prior year, according to a detailed analysis of the results published by Nasdaq and Zacks. Revenues increased around 5 percent on a currency-neutral basis in the same period, underscoring that the broader payments platform remains in growth mode despite investor skepticism.

Online branded checkout, the core PayPal button business that competes directly with offerings from Stripe, Apple and others, grew only about 2 percent year over year on a currency-neutral basis in the quarter, a slight improvement from 1 percent growth in the previous quarter but still a muted pace for such a central franchise. Management highlighted stronger momentum in the United States, while European markets such as the United Kingdom and Germany remained softer and weighed on the branded trajectory, according to that same commentary.

Analyst views and valuation picture

Analysts at Zacks currently assign PayPal shares a Rank #3 (Hold) with a full-year 2026 earnings-per-share estimate of 5.30 US dollars that has remained unchanged over the past two months, signaling a largely stable but cautious consensus on the path ahead in their recent update. Over the last three months, PayPal shares declined roughly 5.2 percent, underperforming both the broader financial transaction services industry and the S&P 500 Index in that period, which keeps the valuation under scrutiny for investors comparing the stock to peers such as Block and Adyen.

On a forward 12-month price-to-earnings basis, the PayPal stock trades at about 7.7 times expected earnings, according to the same analysis, significantly below the around 16.9 times multiple cited for the wider financial transaction services group. This valuation gap contributes to a Value Score of A in the Zacks framework, suggesting that many of the operational concerns around branded checkout and competitive pressure may already be reflected in the current share price level, even as growth in some segments remains moderate.

The business behind the stock

PayPal generates most of its revenue by charging transaction fees on payments processed through its digital wallet, branded checkout button, Venmo and Braintree enterprise services, with additional income from value-added services such as currency conversion and merchant solutions described on its corporate site for consumers and merchants. The group positions itself as a two-sided network connecting more than 400 million active consumer accounts with millions of merchants worldwide, monetizing both sides of the payment relationship.

Where the shares trade today

PayPal shares (US70450Y1038) most recently traded on NASDAQ at around 42.35 US dollars as of 2026-06-23, 06:59 (IST-based quote timestamp converted from a live price overview), leaving the stock roughly 47 percent below its 52-week high and about 10 percent above its 52-week low, according to an updated trading snapshot.

This article is for informational purposes only and does not constitute investment advice, an offer or a solicitation to buy or sell any financial instrument. Historical performance is not a reliable indicator of future results. Investors should conduct their own research or consult a qualified adviser before making investment decisions.