PayPal beats on earnings, raises full-year outlook as Venmo growth accelerates
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PayPal beats on earnings, raises full-year outlook as Venmo growth accelerates

Why This Matters

PayPal topped Wall Street estimates for the quarter and raised full-year guidance, as CEO Alex Chriss pushes profitability over volume.

July 29, 2025
11:04 AM
4 min read
AI Enhanced

From what the evidence shows, In this articlePYPL your favorite stocksCREATE FREE ACCOUNTwatch now8:4408:44Stellar's Denelle Dixon on PayPal launching its stablecoin on the foundation's blockchainCrypto WorldPayPal reported better-than-expected results for the second quarter and raised its full-year guidance for transaction margin dollars and earnings per.

Market analysis shows stock slipped more than 4% ing the report. Nevertheless, Here's how the company did compared with Wall Street estimates, based on a survey of analysts by LSEG:Earnings per : $1.

Nevertheless, 40 adjusted vs. At the same time, 30 expectedRevenue: $8. Meanwhile, 29 billion vs. Moreover, 08 billion expectedSales increased 5% from $7.

Nevertheless, 89 billion a year earlier, as CEO Alex Chriss worked to roll off lower-margin revenue s, in today's market environment.

Additionally, Transaction margin dollars, a key measure of fitability, rose 7% to $3. 84 billion, marking the company's sixth straight quarter of growth.

Furthermore, Conversely, Total payment volume, an indication of how digital payments are faring in the broader economy, beat estimates, coming in at $443. 6 billion, compared with the $433.

6 billion analysts had jected, according to StreetAccount. The number of active accounts rose 2% to 438 million, versus expectations of 437.

Nevertheless, Stock Chart IconStock chart iconPayPal s are nearly 10% lower so far this year. However, PayPal s have fallen 8 (this bears monitoring).

On the other hand, 4% for the year, as of Monday's close, while the Nasdaq is up 10% in 2025, given the current landscape.

Venmo revenue grew more than 20% from a year earlier, ing a 20% jump in the first quarter, though the company didn't vide a dollar figure.

Total payment volume for Venmo increased 12%, its highest growth rate in three years. Chriss has focused on better monetizing key acquisitions such as Braintree and Venmo.

DoorDash, Starbucks and Ticketmaster are among es now accepting Venmo as one way consumers can pay.

Moreover, Watch now2:0402:04GENIUS Act stablecoin rules are great for PayPal, says Mizuho's Dan DolevCrypto World"We dered another quarter of fitable growth, driven by continued strength across many of our strategic initiatives ranging from PayPal and Venmo branded experiences" to acting as payment service vider and other services, Chriss said in the statement.

For the third quarter, PayPal forecast adjusted earnings per of $1. 22, compared with the average analyst estimate of $1. Moreover, Transaction margin dollars are expected to increase 4% to between $3.

76 billion and $3, considering recent developments. 82 billion, the company said, in today's market environment.

Additionally, Don’t miss these insights from CNBC Bank of America says these five stocks have more room to run ahead of earningsThese overbought stocks could take a dip after the market's record gainsGoldman Sachs is getting worried the economyWhat the prediction are saying the big Wall Street events aheadAhead of PayPal's earnings, some analysts had struck a cautiously optimistic tone.

On the other hand, Goldman Sachs noted that branded checkout growth was ly to imve sequentially to around 6%, up from 4% in the first quarter.

On the other hand, Morgan Stanley pointed to stronger e-commerce data and gress on PayPal's checkout initiatives. Advanced integrations are now at 45% of U.

Merchants, up from 30% in December, and are expected to help branded checkout volumes reaccelerate. The bank also flagged momentum in Braintree volumes, considering recent developments.

PayPal now expects full-year adjusted earnings per of $5. Moreover, Conversely, 30, up from its prior forecast of $4.

While third-quarter guidance is roughly inline with expectations, the d outlook implies a stronger fourth quarter, considering recent developments.

On the other hand, The company also jects free cash flow of $6 billion to $7 billion for the year, in light of current trends.

Moreover, WATCH: PayPal's crypto lead on allowing merchants to buy and sell virtual assetswatch now12:1212:12PayPal's crypto lead on allowing merchants to buy and sell virtual assetsCrypto World.

FinancialBooklet Analysis

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Key Insights

  • Earnings performance can signal broader sector health and future investment opportunities
  • Merger activity often signals industry consolidation and potential valuation re-rating for similar companies
  • Financial sector news can impact lending conditions and capital availability for businesses

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  • Could this earnings performance indicate broader sector trends or company-specific factors?
  • Does this M&A activity signal industry consolidation or strategic repositioning?
  • Could this financial sector news affect lending conditions and capital availability?

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