By Vahid Karaahmetovic

Investing.com -- PayPal reported second-quarter earnings that topped Wall Street estimates on Wednesday and raised its full-year profit guidance.

The company posted second-quarter earnings per share of $1.38, beating the analyst estimate of $1.28. Revenue came in at $8.68 billion, up 3% on a currency-neutral basis, above the $8.47 billion consensus.

Looking ahead, PayPal raised its full-year 2026 EPS guidance to $5.38, up from its previous guidance of a low-single-digit decline to slightly positive growth, and above the $5.31 consensus.

For the third quarter, the company expects adjusted EPS to decline by a low-single-digit percentage from the prior-year figure of $1.34.

"I'm encouraged by the progress we made this quarter. We moved with urgency to sharpen our transformation plan and advance our growth strategies across our three businesses," said Enrique Lores, CEO of PayPal.

"Based on the strength of our execution and confidence in the trajectory of the business, we're raising our full-year non-GAAP guidance. Our transformation is well underway, and we're executing with discipline on our priorities to deliver durable, profitable growth over the long term."

The company said transaction margin dollars rose 1% to $3.9 billion during the second quarter, while transaction margin dollars excluding interest on customer balances rose 3% to $3.6 billion. Adjusted operating income fell 8% to $1.5 billion, with the adjusted operating margin contracting 248 basis points to 17.4%.

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Total payment volume rose 10% to $486.4 billion, or 9% on a currency-neutral basis. Payment transactions increased 8% to 6.8 billion, or 7% excluding payment service provider transactions. Payment transactions per active account rose 3% to 60.0 on a trailing 12-month basis, or 7% excluding PSP transactions.

Active accounts rose 0.3% year-over-year to 439 million, though they declined slightly on a sequential basis, down 0.04%, or 0.2 million accounts.

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