PayPal HoldingsFRA:2PP -0.93%87 Net Margin % is 13.32% as of Mar. 2026, which is 3% below its 10-year median of 13.78. GuruFocus rates FRA:2PP with a GF Score™ of 87/100 and a GF Value™ of €73.10 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 534 Credit Services companies, PayPal Holdings ranks better than 50.94% on this metric.
Net margin is calculated as Net Income divided by its Revenue. PayPal Holdings's Net Income for the
three
months ended in Mar. 2026 was €963 Mil. PayPal Holdings's Revenue for the
three
months ended in Mar. 2026 was €7,225 Mil. Therefore, PayPal Holdings's net margin for the quarter that ended in Mar. 2026 was 13.32%.
The historical rank and industry rank for PayPal Holdings's Net Margin % or its related term are showing as below:
FRA:2PP'
s Net Margin % Range Over the Past 10 Years
Min: 8.79 Med: 13.78 Max: 19.59
Current: 15
FRA:2PP's Net Margin % is ranked better than 50.94% of 534
companies
in the Credit Services industry
Industry Median: 14.52
vs FRA:2PP: 15.00
PayPal Holdings (FRA:2PP) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
PayPal Holdings Net Margin % Related Terms
PayPal Holdings Net Margin % Historical Data
* Premium members only.
The historical data trend for PayPal Holdings's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:2PP vs AFRM, SYF, SOFI: Net Margin % Comparison
For the Credit Services subindustry, PayPal Holdings's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PayPal Holdings Net Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PayPal Holdings's Net Margin % distribution charts can be found below:
* The bar in red indicates where PayPal Holdings's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PayPal Holdings (FRA:2PP) has a Net Margin % of 13.32% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on PayPal Holdings and its competitors. This is near median its historical median of 13.78. Over the past decade, PayPal Holdings' Net Margin % has ranged from 8.79 to 19.59. According to the industry distribution chart, PayPal Holdings ranks #262 out of 534 companies in the Credit Services industry, placing it in the top 49.1%.
Is PayPal Holdings' Net Margin % too high?
PayPal Holdings' current Net Margin % of 13.32% is near median its 10-year median of 13.78. Over the past 10 years, this metric has ranged from a low of 8.79 to a high of 19.59. The Credit Services industry median Net Margin % is 14.52. PayPal Holdings' value of 13.32% is 8.3% below this industry median. Based on the distribution chart, PayPal Holdings ranks #262 out of 534 companies in the Credit Services industry, which is above the industry midpoint. Overall, PayPal Holdings has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PayPal Holdings' Net Margin % compare to AFRM and SYF?
According to the Credit Services industry distribution chart, PayPal Holdings ranks #262 out of 534 companies for Net Margin %. This puts PayPal Holdings in the upper half of its industry. The industry median Net Margin % is 14.52. PayPal Holdings' value of 13.32% is 8.3% below this benchmark. Historically, PayPal Holdings' own Net Margin % has ranged from 8.79 to 19.59 over the past decade. While the company's 10-year median is 13.78 vs. the industry median of 14.52, PayPal Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Credit Services company?
The median Net Margin % among Credit Services companies is 14.52, based on 534 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PayPal Holdings's current Net Margin % of 13.32% is 8.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on PayPal Holdings and its competitors. For the Credit Services industry, the median Net Margin % is 14.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PayPal Holdings's current Net Margin % is 13.32%, which is near median its own 10-year median of 13.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PayPal Holdings stock overvalued right now?
Based on GuruFocus' analysis, PayPal Holdings (FRA:2PP) is currently considered Significantly Undervalued. The stock's GF Value™ is €73.10, compared to a current price of €37.35 — trading 48.9% below its estimated fair value. The current Net Margin % is 13.32%, which is near median its 10-year median of 13.78 and 8.3% below the Credit Services industry median of 14.52. PayPal Holdings' overall GF Score™ is 87/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For PayPal Holdings (FRA:2PP), the current Net Margin % is 13.32% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PayPal Holdings (FRA:2PP) Overvalued in 2026?
Based on GuruFocus' analysis, PayPal Holdings stock appears to be undervalued.
The current stock price of €37.35 is trading 48.9% below its estimated GF Value™ of €73.10.
GuruFocus considers PayPal Holdings to be Significantly Undervalued.
Key valuation signals for FRA:2PP:
Net Margin %: 13.32% (near median its 10-year median of 13.78)
GF Value™: €73.10 vs. price of €37.35 (48.9% below fair value)
Industry Position: 8.3% below the Credit Services median (#262 of 534)
No single metric tells the full story. See the FRA:2PP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PayPal was spun off from eBay in 2015 and provides electronic payment solutions to merchants and consumers, with a focus on online transactions. The company had 439 million active accounts at the end of 2025. The company also owns Venmo, a person-to-person payment platform.
87GF Score
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