Research memoPayPal Holdings, Inc. (PYPL) · NASDAQMemo of October 18, 2026

PayPal stock forecast

PayPal's weighted scenario reaches $67.00 in October 2027; the bear case has 30% probability, the base case 50% and the bull case 20%. It hinges on turning payment volume into durable margin while containing credit losses.

56.70
Share price today, USD
105.20 (+89 %)
Weighted scenario, October 2029
9.4%
Real free cash flow yield
9.8x
P/E, next 12 months
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Every number traced to PayPal's filings8 chapters · 16,409 words191 sources cited

Where could PayPal's shares be by 2029?

The weighted forecast reaches $67.00 in October 2027. That implies +19%. It reaches $105.20 in October 2029. That implies +89%. The bear case has 30% probability, the base case 50% and the bull case 20%.

PayPal’s weighted path is $67.00 in October 2027, or a 19% return including dividends. It reaches $83.74 in October 2028, a 50% return, and $105.20 in October 2029, an 89% return.

Share price in October 2029: our three scenarios (USD)Today 56.758.22Bear · 30 % · +6%109.40Base · 50 % · +96%165.16Bull · 20 % · +195%
What the shares could be worthUSD per share at each date; in brackets the return since today's 56.70, dividends included
CaseProbabilityOctober 2027October 2028October 2029
Bear30 %50.42 (-10 %)53.20 (-4 %)58.22 (+6 %)
Base50 %70.63 (+26 %)88.07 (+57 %)109.40 (+96 %)
Bull20 %82.79 (+47 %)118.73 (+112 %)165.16 (+195 %)
Weighted100 %67.00 (+19 %)83.74 (+50 %)105.20 (+89 %)

What this means. The weighted row is the probability-based average of the bear, base, and bull cases, not a separate prediction.

What has to go right for PayPal's base case—and what could go wrong?

The bear case requires branded checkout to keep losing shopper choice, while Braintree volume grows without enough transaction margin. Higher funding costs, credit losses or transformation spending then prevent savings from reaching profit. The first price is $50.42 in October 2027. The last is $58.22 in October 2029. Its probability is 30% because checkout grew only 2%, transaction margin dollars grew 1% and operating margin contracted.

The bull case requires checkout repair, stronger Venmo paid use, better-priced Braintree volume and savings that exceed reinvestment. The first price is $82.79. The final price is $165.16. Its probability is 20% because all four improvements must arrive together, while current transaction-margin conversion remains weak.

How much cash does PayPal really make?

In Q2 2026, operating cash flow was $1,983 million and FCF was $1,775 million. PayPal’s adjusted FCF was $1,832 million after excluding the timing difference between originating BNPL receivables held for sale and selling them. In the first half of 2026, loan sales produced $15.8 billion of cash. That cash is real, but it is not automatically recurring cash from payment processing.

Follow the money: real free cash flowUS$ millions
20252024202320222021
Cash from operations6,4167,4504,8435,8135,797
− Capital spending852683623706908
= Free cash flow5,5646,7674,2205,1074,889
− Stock pay1,0021,2301,4751,2611,376
= Real free cash flow4,5625,5372,7453,8463,513

What this means. The free cash flow includes money PayPal lends to customers, so it is not only cash from its payment business.

What does an investor pay for PayPal today?

What an investor pays todayUS$ millions
Today (Oct 18, 2026)
Share price56.70
P/E, last 12 months (calculated)10.7x
P/E, next 12 months (calculated)9.8x
EV / revenue, last 12 months (calculated)1.5x
Free cash flow yield (calculated)11.5%
Real free cash flow yield (calculated)9.4%

What this means. PayPal's free cash flow figures include its consumer and merchant lending business, not just cash from its payment services.

From the full memo · 1. The business

PayPal is a payments company: it helps people and businesses move money, and it earns fees when it completes those movements. To understand its business, follow a dollar from a shopper or sender to PayPal, through the costs and risks, and onward to the merchant, recipient or lender.

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Where these numbers come from

More on PayPal

PayPal dividendPayPal earnings

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