PayPal (PYPL) official guidance

We remain on track to achieve at least $1.5 billion in gross run rate cost savings over the next 2-3 years and are increasing our expectations exiting the fourth quarter to a run rate of more than $700 million.

We now expect transaction margin dollars to increase to approximately $15.7 billion, or $14.6 billion excluding interest on customer balances, mid-single-digit growth in non-transaction operating expenses, and non-GAAP EPS to increase to approximately $5.60.

For the fourth quarter, we expect low double-digit revenue growth on a currency neutral basis, slightly positive growth in transaction margin dollars, TM dollars excluding interest on customer balance to be slightly positive, and flat to low single-digit growth in non-transaction operating expenses and non-GAAP EPS of approximately $1.43.

We are targeting 2027 non-GAAP EPS growth similar to this year as we position the business for faster, more durable growth over time.

Our guidance now includes at least $6.5 billion of adjusted free cash flow and continues to incorporate approximately $6 billion in share repurchases.

We now expect transaction margin dollars to increase to approximately $15.7 billion, or $14.6 billion excluding interest on customer balances, mid-single-digit growth in non-transaction operating expenses, and non-GAAP EPS to increase to approximately $5.60.

For the fourth quarter, we expect low double-digit revenue growth on a currency neutral basis, slightly positive growth in transaction margin dollars, TM dollars excluding interest on customer balance to be slightly positive, and flat to low single-digit growth in non-transaction operating expenses and non-GAAP EPS of approximately $1.43.

For the fourth quarter, we expect low double-digit revenue growth on a currency neutral basis, slightly positive growth in transaction margin dollars, TM dollars excluding interest on customer balance to be slightly positive, and flat to low single-digit growth in non-transaction operating expenses and non-GAAP EPS of approximately $1.43.

Our guidance now includes at least $6.5 billion of adjusted free cash flow and continues to incorporate approximately $6 billion in share repurchases.

For online branded checkout, we continue to expect low single-digit TPV growth on a currency neutral basis for the full year, in line with our prior expectations.

This assumes that headwinds in Europe, including the impact from the removal of the EU de minimis tax exemption, continue to persist and result in similar 1%-2% online branded growth throughout the fourth quarter.

We now expect transaction margin dollars to increase to approximately $15.7 billion, or $14.6 billion excluding interest on customer balances, mid-single-digit growth in non-transaction operating expenses, and non-GAAP EPS to increase to approximately $5.60.

We now expect transaction margin dollars to increase to approximately $15.7 billion, or $14.6 billion excluding interest on customer balances, mid-single-digit growth in non-transaction operating expenses, and non-GAAP EPS to increase to approximately $5.60.

For the fourth quarter, we expect low double-digit revenue growth on a currency neutral basis, slightly positive growth in transaction margin dollars, TM dollars excluding interest on customer balance to be slightly positive, and flat to low single-digit growth in non-transaction operating expenses and non-GAAP EPS of approximately $1.43.

For the fourth quarter, we expect low double-digit revenue growth on a currency neutral basis, slightly positive growth in transaction margin dollars, TM dollars excluding interest on customer balance to be slightly positive, and flat to low single-digit growth in non-transaction operating expenses and non-GAAP EPS of approximately $1.43.

| GAAP EPS2 | ~$5.07 | Mid-single digit decline | $5.41 |

| GAAP EPS | ~$1.37 | N/A | $1.53 |

We have already identified actions to unlock approximately $400 million of new run rate gross savings by the end of this year, with a portion to be realized in the fourth quarter.

We are making good progress on our plan to deliver at least $1.5 billion of gross run rate savings over the next two to three years.

Turning to more specifics for the third quarter, we expect low double-digit revenue growth on a currency-neutral basis, slightly positive growth in transaction margin dollars, transaction margin dollars excluding interest on customer balances to be slightly positive to growing low single digits, high single-digit growth in non-transaction operating expenses, and non-GAAP earnings per share to decline within a low single-digit range.