PayPal reported better-than-expected results for the second quarter and raised its full-year guidance for transaction margin dollars and earnings per share. The stock slipped greater than 5% following the report.
Here’s how the corporate did compared with Wall Street estimates, based on a survey of analysts by LSEG:
- Earnings per share:Â $1.40 adjusted vs. $1.30 expected
- Revenue:Â $8.29 billion vs. $8.08 billion expected
Sales increased 5% from $7.89 billion a yr earlier, as CEO Alex Chriss worked to roll off lower-margin revenue streams.
Transaction margin dollars, a key measure of profitability, rose 7% to $3.84 billion, marking the corporate’s sixth straight quarter of growth.
Growth in that metric slowed sequentially, down from 8% in the primary quarter when excluding a one-time profit that boosted results earlier this yr. Branded checkout volumes also slowed to five%, compared with 6% in the primary quarter when adjusted for Leap Day.
Total payment volume, a sign of how digital payments are faring within the broader economy, beat estimates, coming in at $443.6 billion, compared with the $433.6 billion analysts had projected, in accordance with StreetAccount. The variety of energetic accounts rose 2% to 438 million, versus expectations of 437.8 million.
PayPal shares are nearly 10% lower thus far this yr.
PayPal shares have fallen 8.4% for the yr, as of Monday’s close, while the Nasdaq is up about 10% in 2025.
Venmo revenue grew greater than 20% from a yr earlier, following a 20% jump in the primary quarter, though the corporate didn’t provide a dollar figure. Total payment volume for Venmo increased 12%, its highest growth rate in three years.
Chriss has focused on higher monetizing key acquisitions similar to Braintree and Venmo. DoorDash, Starbucks and Ticketmaster are amongst businesses now accepting Venmo as a technique consumers will pay.
“We delivered one other quarter of profitable growth, driven by continued strength across lots of our strategic initiatives starting from PayPal and Venmo branded experiences” to acting as payment service provider and other services, Chriss said within the statement.
For the third quarter, PayPal forecast adjusted earnings per share of $1.18 to $1.22, compared with the typical analyst estimate of $1.20. Transaction margin dollars are expected to extend 4% to between $3.76 billion and $3.82 billion, the corporate said.
Ahead of PayPal’s earnings, some analysts had struck a cautiously optimistic tone. Goldman Sachs noted that branded checkout growth was prone to improve sequentially to around 6%, up from 4% in the primary quarter.Â
Morgan Stanley pointed to stronger e-commerce data and progress on PayPal’s checkout initiatives. Advanced integrations are actually live at 45% of U.S. merchants, up from 30% in December, and are expected to assist branded checkout volumes reaccelerate. The bank also flagged ongoing momentum in Braintree volumes.
PayPal now expects full-year adjusted earnings per share of $5.15 to $5.30, up from its prior forecast of $4.95 to $5.10. While third-quarter guidance is roughly inline with expectations, the updated outlook implies a stronger fourth quarter. The corporate also projects free money flow of $6 billion to $7 billion for the yr.
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