Stripe is reportedly in early discussions about acquiring PayPal Holdings, Inc., according to a Bloomberg report released on February 25, 2026. The privately held fintech firm, valued at $159 billion after a recent employee tender offer, is said to be evaluating a purchase of all or part of PayPal, whose market capitalization hovers around $43 billion.
PayPal’s latest quarterly results show a 4% increase in net revenues to $8.7 billion and a 38% rise in GAAP earnings per share to $1.53 in Q4 2025, while the full‑year 2025 figures show net revenues up 4% to $33.2 billion and GAAP EPS up 35% to $5.41. The company’s branded checkout segment experienced only 1% growth in total payment volume on a currency‑neutral basis, highlighting execution challenges in that area.
Stripe’s 2025 payment volume reached $1.9 trillion, a 34% year‑over‑year increase, and the firm’s revenue suite is on track to hit a $1 billion annual run rate in 2026. Enterprise clients such as Microsoft and Nvidia are expanding their use of Stripe’s platform, and the company cites artificial‑intelligence initiatives as a key growth driver.
The potential transaction would combine Stripe’s modern, scalable infrastructure and its growing stablecoin business with PayPal’s extensive global user base and merchant network. A premium offer could reshape competitive dynamics in the digital payments sector and provide Stripe with an indirect path to a public listing, while giving PayPal shareholders a potentially attractive exit in a challenging market environment.
The announcement was met with a positive market reaction, with analysts noting the strategic fit and the potential for a short squeeze as speculation about the deal spread. The market’s enthusiasm reflects the perceived value of a combined entity that could leverage complementary strengths in technology, scale, and customer reach.
Management commentary underscores the strategic intent: Stripe co‑founder John Collison highlighted the firm’s growing enterprise adoption and the tailwind from AI, while PayPal’s interim CEO Jamie Miller emphasized the company’s solid performance in 2025 and the need for stronger execution in branded checkout. Incoming CEO Enrique Lores expressed confidence in driving innovation and delivering results in the post‑transition period.
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