PayPal shows strong Q2 growth with 157% rise in free cash flow and raised earnings guidance.

PayPal reported strong Q2 results with total payment volume up about 10% to $486.45 billion and free cash flow soaring 157% year-over-year. The company raised its guidance for non-GAAP earnings per share and transaction margin dollars, signaling confidence in future performance. PayPal's solid balance sheet supports $6 billion in planned buybacks by 2026 and potential transformative mergers and acquisitions, despite ongoing macroeconomic challenges and competition. Analysts see the stock as undervalued with intrinsic value estimates well above current prices, suggesting significant upside potential.