PayPal Earnings Beat, But Slower Spending And Checkout Use Weigh On Results

PayPal Holdings Inc (NASDAQ:PYPL) stock tanked Tuesday after it reported first-quarter 2025 results.

The company reported:

PayPal held $15.8 billion in cash and equivalents as of March 31, with $12.6 billion in debt.

CEO Alex Chriss said the quarter marked the company’s fifth consecutive quarter of profitable growth, with progress across branded checkout, PSP, omnichannel, and Venmo.

Outlook: PayPal expects a second-quarter adjusted EPS of $1.29-$1.31, compared to $1.19 for the previous year’s period, and the analyst consensus estimate is $1.21.

PayPal reiterated full-year 2025 adjusted EPS of $4.95-$5.10, compared to $4.65 Y/Y. Current analysts estimate an EPS of $5.01.

Mizuho analyst Dan Dolev told Bloomberg he expects that sign of progress to help PayPal shares rebound. He said maintaining the full-year guidance demonstrated the firm’s strength.

Morgan Stanley told CNBC that investor sentiment remained bearish due to the potential impact of tariffs, competitive pressure from Apple Inc (NASDAQ:AAPL), and the risk of a long-term slowdown in branded checkout growth.

Jefferies told CNBC that PayPal’s China cross-border exposure is an emerging risk tied to potential new tariffs and changes to the de minimis exemption.

Price Action: At the last check on Tuesday, PayPal stock was down 2.62% at $63.23 premarket.

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PayPal Holdings Inc (NASDAQ:PYPL) stock tanked Tuesday after it reported first-quarter 2025 results.

The company reported:

Quarterly revenue growth was 1% year-over-year to $7.79 billion, missing the analyst consensus estimate of $7.84 billion.
Adjusted EPS was $1.33, beating the analyst consensus estimate of $1.16.
Total payment volumes increased 3% year-over-year to $417.2 billion in the quarter.
Payment transactions were down 7% to $6 billion
Payment transactions per active account decreased 1% on a trailing 12-month basis to $59.4.
Total active accounts increased by 2% to 436 million. Sequentially, active accounts increased by 0.3%, or 1.5 million.
The operating margin increased 447 basis points to 19.6%, and the adjusted operating margin increased 257 bps to 20.7%.
Operating cash flow was $1.2 billion, and free cash flow was $1 billion.

PayPal held $15.8 billion in cash and equivalents as of March 31, with $12.6 billion in debt.

CEO Alex Chriss said the quarter marked the company’s fifth consecutive quarter of profitable growth, with progress across branded checkout, PSP, omnichannel, and Venmo.

Outlook: PayPal expects a second-quarter adjusted EPS of $1.29-$1.31, compared to $1.19 for the previous year’s period, and the analyst consensus estimate is $1.21.

PayPal reiterated full-year 2025 adjusted EPS of $4.95-$5.10, compared to $4.65 Y/Y. Current analysts estimate an EPS of $5.01.

Mizuho analyst Dan Dolev told Bloomberg he expects that sign of progress to help PayPal shares rebound. He said maintaining the full-year guidance demonstrated the firm’s strength.

Jefferies told CNBC that PayPal’s China cross-border exposure is an emerging risk tied to potential new tariffs and changes to the de minimis exemption.

Price Action: At the last check on Tuesday, PayPal stock was down 2.62% at $63.23 premarket.

Now Read:

Rare Bullish Signal Just Flashed On Wall Street: Will It Power S&P 500 To 6,000?

Image: Shutterstock

PYPLPayPal Holdings Inc

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PayPal Earnings Beat, But Slower Spending And Checkout Use Weigh On Results

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