PayPal Holdings Inc. (PYPL) shares rose about 4% at the close during regular trading hours on July 28. Earlier, the company reported Q2 EPS and revenue that both exceeded expectations and raised its full-year guidance; after hours, the stock fell 0.18%. Morgan Stanley maintained an “Underweight” rating, saying that executing the company’s internal transition strategy could create “significant value” for shareholders, and noting that PayPal is trending toward stability rather than facing immediate trading pressure.
PayPal Q2 2026 Results Beat Expectations: Both EPS and Revenue Exceed
PayPal’s Q2 2026 earnings showed both EPS and revenue exceeding market expectations, and the company immediately raised its full-year performance guidance. Morgan Stanley said improved prospects for PayPal’s branded payments business and the raised full-year outlook both indicate increased confidence from management. BTIG said results “beat expectations across the board,” adding that management stated the board of directors is committed to maximizing shareholder value with an “open and objective” attitude.
Although the article didn’t fully disclose the specific EPS and revenue figures, it consistently cited that results beat expectations—which became a direct catalyst for the stock’s rise.
Morgan Stanley and BTIG’s Take: Transition Strategy First, Low Likelihood of Near-Term Acquisition
The two analyst firms’ latest views on PayPal are as follows:
Morgan Stanley: Maintains an “Underweight” rating; believes PayPal’s decision to refuse to comment on acquisition rumors is the right move; says executing the internal transition strategy can create “significant value” for shareholders; and notes that the company is moving toward stability rather than facing immediate trading pressure.
BTIG: Maintains a “Neutral” rating; results “beat expectations across the board”; management said the board of directors takes an “open and objective” approach, but it remains focused on executing the transition plan; BTIG also said it expects PayPal will not be acquired in the near term.
Background: Stripe and Advent’s Acquisition Proposal Rejected
Earlier this month, Stripe Inc. and private equity firm Advent International jointly proposed acquiring PayPal at a price of $60.50 per share, implying a valuation of more than $53 billion. PayPal said the offer price was too low. On the Stocktwits platform, investor sentiment shifted from “bearish” to “neutral” over the past 24 hours, and message volume rose from “low” to “high.” Over the past 30 days, message volume surged 2933%, and the number of followers increased by 0.4%.
Some retail traders believe PayPal’s strong performance could push the stock price to $60 in the short term and eventually break above $80. Other traders estimate that, given earnings above expectations, raised guidance, and ongoing share buybacks, the potential acquisition price could be around $82.
FAQ
How did the stock perform after PayPal (PYPL) released its Q2 2026 earnings?
PYPL shares rose about 4% at the close during regular trading hours on Tuesday, July 28, and fell 0.18% after hours as of the time of publication. The company’s Q2 EPS and revenue both beat expectations, and it raised full-year guidance. PYPL shares are down about 2.4% year-to-date.
What are Morgan Stanley and BTIG’s ratings and acquisition outlook for PayPal?
Morgan Stanley maintained an “Underweight” rating, saying PayPal is trending toward stability rather than facing immediate trading pressure, and that executing the transition strategy could create “significant value” for shareholders. BTIG maintained a “Neutral” rating, said results “beat expectations across the board,” and said it expects PayPal will not be acquired in the near term.
What was the acquisition price proposed by Stripe and Advent, and why did PayPal reject it?
Earlier this month, Stripe Inc. and Advent International jointly proposed acquiring PayPal at $60.50 per share (implying a valuation of more than $53 billion). PayPal said the offer price was too low and rejected the acquisition proposal. Some retail traders on Stocktwits estimated that, considering the company’s performance and share buybacks, a more reasonable acquisition price could be around $82.
