PayPal has raised its guidance after beating estimates last quarter, driven by revenue growth across segments and regions.
Earnings per share were US$1.34, rising 12% year-over-year and above Zacks estimates of $1.19. Revenue was up 7% to $8.42 billion, beating estimates by 1.95%.
“PayPal delivered another strong quarter and we are raising guidance, with broad-based profitable growth across branded experiences, PSP, and Venmo,” said PayPal CEO Alex Chriss.
“We have returned the company to growth and are on pace for 6% to 7% transaction margin dollar growth in 2025 when excluding interest on customer balances. We are also building for an agentic future, partnering with leaders such as Google, OpenAI, and Perplexity.”
Operating income was $1.57 billion, up 6%. Net income was $1.29 billion, rising 5%.
The company’s full-year guidance projects earnings per share of $5.35-5.39. In July, it had forecast earnings per share of $5.15-5.30.
Its fourth quarter outlook expects earnings per share of $1.27-1.31.
Transaction revenues increased by 6% to $7.52 billion, while revenue from other services was up 15% to $895 million. The number of payment transactions dropped by 5%.
United States revenues, which represent 56% of total revenue, grew by 5% to $4.75 billion. International revenues increased by 10% to $3.66 billion.
PayPal will partner with OpenAI to allow ChatGPT users to pay with PayPal while shopping in the app, the company also said today. Businesses using PayPal will be available to buy from within ChatGPT.
PayPal’s (NASDAQ: PYPL) share price closed at $73.02, up from its previous close at $70.25. Its market capitalisation is $69.75 billion.
