PayPal 10-Q: Q3 Net Income Falls 14% to $1,073M on $255M Restructuring Charge
PYPL sits 46% above its 52-week low of $38.46.
Summary
PayPal's Q3 10-Q shows net income down 14% to $1,073M on a $255M restructuring charge, plus a new FTC investigation and an adverse IRS exam report for 2015-2018.
Key Events · Earnings and Guidance · PYPL
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Q3 Profit Falls on Restructuring
Net income was $1,073M, or $1.25 diluted, versus $1,248M and $1.30 a year ago; operating income fell to $1,402M (16% margin) from $1,520M (18%).
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$152M Workforce Charge, $340M Savings
Restructuring and other expense rose to $255M from $69M, driven by a $152M charge from the 3Q 2026 Plan global workforce reduction, which management expects to save about $340M annualized.
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New FTC Probe and IRS Exam Report
PayPal received a September 2026 FTC CID into fees and purchase protection, and the IRS issued a Revenue Agent's Report proposing adjustments to 2015-2018 taxable income that the company will contest through Appeals.
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$2.0B May Notes Lift Debt
May 2026 issuance of $650M 4.550% 2028, $850M 4.950% 2031 and $500M 5.550% 2036 notes brought total notes outstanding to $12,735M from $10,884M at year-end.
Analysis · PYPL · Trade & Services
The headline numbers were already out this morning via the 8-K, but the full 10-Q shows where the profit went: operating income fell 8% to $1,402M as restructuring and other expense jumped to $255M from $69M, including a $152M charge for the 3Q 2026 workforce reduction that management says will save about $340M a year. Two new legal items matter for the risk case — a September 2026 FTC CID into fees and purchase protection, and an IRS Revenue Agent's Report proposing adjustments to 2015-2018 taxable income that PayPal will fight through Appeals. The balance sheet also carries $2.0B of new May 2026 notes, lifting total notes to $12,735M, while buybacks of 27.5M shares for roughly $1.5B in the quarter left $9.353B on the February 2025 authorization.
How filings like this one have moved
In the 30 days to Oct 27, 2026, 29.9% of the 1374 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.12%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, PYPL was trading at $56.00 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $48B. The 52-week trading range was $38.46 to $79.22. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.