PayPal's (PYPL) Q1 results topped estimates, with upside partially driven by share repurchases, but weaker-than-expected Q2 guidance and the decision to reiterate full-year guidance suggest no clear operating inflection, BofA Securities said Wednesday.

Management reiterated confidence in PayPal's two-sided network, global scale and brands, while outlining more than $1.5 billion in run-rate cost savings over the next two to three years as part of a broader reset, according to the note.

Investor reaction was tempered by a weaker near-term outlook for Q2 and fiscal 2026, the reinvestment of most savings rather than near-term earnings upside, and confirmation that business resegmentation will not begin until next year, the brokerage said.

BofA updated its price objective to $53 from $55, based on a 9x multiple of its revised adjusted second-12-month earnings per share estimate of $5.86, up from $5.46.

BofA maintained a neutral rating on PayPal.

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