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Research Alert: CFRA

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

PYPL delivered mixed Q1 2026 results with adjusted EPS of $1.34 vs. $1.33 prior year, beating consensus by $0.07 on revenue of $8.4B (+7% Y/Y), which beat by $300M. However, profitability metrics deteriorated with operating margins contracting 182-229 bps amid competitive pressures. We think the meaningful TPV acceleration to $464B (+11% Y/Y vs. +9% in Q4) indicates improving transaction momentum despite ongoing user engagement challenges. Management reiterated full-year guidance, suggesting a cautious outlook under CEO Enrique Lores' leadership. User metrics remained problematic with active accounts growing just 1% to 439M and transactions per account declining 1% to 58.7, highlighting persistent engagement challenges. We believe the strong cash generation of $1.7B in adjusted FCF enabled $1.5B in share repurchases and a $0.14 quarterly dividend, demonstrating management's confidence in durable cash flows despite execution risks in the competitive digital payments landscape.

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