PayPal signals openness to higher bid after Q2 earnings beat
Original: PayPal leaves the door open to a higher takeover offer following earnings beat
Why This Matters
PayPal's earnings beat and open-ended M&A stance could pressure Stripe to raise its $53.4B bid.
PayPal CEO Enrique Lores said the company would consider any path creating 'superior value' for shareholders, stopping short of rejecting Stripe and Advent International's $60.50/share ($53.4B) takeover bid following a Q2 earnings beat on July 28, 2026.
On its Q2 2026 earnings call, PayPal CEO Enrique Lores declined to directly address Stripe and Advent International's $53.4 billion takeover offer of $60.50 per share, but left the door open to a higher bid. He stated the company would 'carefully consider' any lever or path that creates 'superior value' for shareholders beyond its current standalone strategy. PayPal reported adjusted EPS of $1.38, beating estimates of $1.28, and revenue of $8.68 billion—up 5% year-over-year and above the $8.47 billion consensus. Adjusted free cash flow came in at $1.8 billion. Financial firm Cantor estimated PayPal's fair value at approximately $70 per share, well above the offer price; shares currently trade around $58. Lores also updated investors on PayPal's AI-driven turnaround, which includes restructuring into three segments—checkout solutions, consumer financial services/Venmo, and payment services/crypto—and a target of at least $1.5 billion in gross run-rate savings over two to three years. The company is also migrating to cloud infrastructure and reducing platform complexity.