PomegraPayPal Stock Rises 2% After 2,000 Job Cuts, Profit Raise
Why is PayPal stock up today?
PayPal (PYPL) stock rose about 2% to roughly $56 on Tuesday after the company announced 2,000-plus job cuts and raised its profit outlook, shrugging off a revenue miss that sent shares lower premarket.
Key numbers
| Q3 revenue | $8.58B+2% YoY; est. $8.71B |
|---|---|
| Adjusted EPS | $1.45+8% YoY; est. $1.31 |
| 2026 EPS outlook | ~$5.60from $5.38 |
| Job cuts | 2,000+25%+ of manager roles |
| Savings target | $1.5Bover 2–3 years; $700M by end-2026 |
| PYPL share price | $55.85+1.56% at 1:09 PM EDT |
What happened
PayPal (PYPL) stock rose about 2% to roughly $56 on Tuesday after the company announced 2,000-plus job cuts and raised its profit outlook, shrugging off a revenue miss that sent shares lower premarket. Shares had dipped 2% to 3% before the market opened because sales of $8.58B, up 2% from a year ago, missed the $8.71B analysts expected. Adjusted profit of $1.45 a share beat the $1.31 forecast, and PayPal lifted its yearly profit target (its outlook) to about $5.60. It is cutting over 2,000 jobs and using AI, such as customer-service agents, to reach $1.5B in savings over two to three years.
Why it matters
PayPal (PYPL) is showing it can grow profit even when sales barely grow, which helped its shares recover from an early drop. Cutting more than 2,000 jobs and adding AI tools lowers costs, with $700 million in yearly savings targeted by the end of 2026. The catch is that sales rose only 2%, so profit gains lean on cost cuts rather than new customers.
Who this affects
- MarketmixedMedium impact
- Investors weigh stronger profit against slow sales growth.
- CompanybullishMedium impact
- Shareholders gain from higher profit forecast; 2,000 employees lose jobs.
- CompetitorsneutralLow impact
- Block, Affirm and Adyen face a leaner PayPal.
- IndustrymixedLow impact
- Payments firms lean further on AI to cut costs.
PayPal vs Block, Affirm, Adyen
How we got here
Premarket, shares fell about 2–3% to near $54; outlets differ on the exact drop.
PayPal reports Q3, raises 2026 profit outlook and announces 2,000+ job cuts.
Shares reverse to $55.85, up 1.56% at 1:09 PM EDT, and near $56 later.
What to watch
- Whether Q4 profit lands near PayPal's $1.43 guidance versus the $1.35 Street estimate.Q4 2026
- Progress toward $700M in savings by year-end and the wider $1.5B goal.2026-12-31
- Whether sales growth rises above 2%, with Q4 revenue expected near $9.00B.Q4 2026
Educational content only. Not investment advice.
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