PayPal (NASDAQ:PYPL) Announces Quarterly Earnings Results

Key Points

• PayPal reported quarterly EPS of $1.23, missing the consensus by $0.06, and revenue of $8.68 billion versus $8.82 billion expected, with top-line growth of 4.0% year‑over‑year.
• The board named Enrique Lores as President & CEO (effective March 1) and David W. Dorman as independent board chair, a management reset aimed at improving strategic execution and investor confidence.
• Wall Street has trimmed price targets and the consensus rating is Hold (consensus target $73.10), while analysts warn that competitive pressures and recent insider selling could keep the stock under pressure.

PayPal (NASDAQ:PYPL - Get Free Report) announced its quarterly earnings data on Tuesday. The credit services provider reported $1.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.29 by ($0.06), Briefing.com reports. The firm had revenue of $8.68 billion for the quarter, compared to analysts' expectations of $8.82 billion. PayPal had a net margin of 14.96% and a return on equity of 25.64%. The business's quarterly revenue was up 4.0% on a year-over-year basis. During the same period in the previous year, the company posted $1.19 EPS.

PayPal Price Performance

Shares of PayPal stock opened at $52.33 on Tuesday. The company has a 50-day simple moving average of $58.87 and a two-hundred day simple moving average of $65.24. PayPal has a twelve month low of $52.06 and a twelve month high of $89.71. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 0.56. The stock has a market capitalization of $48.96 billion, a price-to-earnings ratio of 10.49, a price-to-earnings-growth ratio of 0.66 and a beta of 1.43.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on PYPL. Evercore ISI decreased their price objective on shares of PayPal from $75.00 to $65.00 and set an "in-line" rating for the company in a report on Monday, December 8th. Cantor Fitzgerald raised PayPal to a "hold" rating in a research note on Tuesday, January 27th. Redburn Partners set a $50.00 price target on shares of PayPal in a research note on Wednesday, January 28th. Robert W. Baird restated a "neutral" rating and set a $66.00 target price (down previously from $83.00) on shares of PayPal in a research note on Friday, December 12th. Finally, JPMorgan Chase & Co. reaffirmed a "neutral" rating and set a $70.00 price objective (down from $85.00) on shares of PayPal in a report on Thursday, December 4th. Twelve research analysts have rated the stock with a Buy rating, twenty-four have assigned a Hold rating and six have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, PayPal has a consensus rating of "Hold" and a consensus price target of $73.10.

PayPal News Roundup

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Board names Enrique Lores as President & CEO (effective March 1) and David W. Dorman as independent board chair — management change seen as a fresh leadership reset that could improve strategic execution and investor confidence. PayPal Appoints Enrique Lores as Chief Executive Officer and David W. Dorman as Independent Board Chair
• Positive Sentiment: Several opinion pieces argue PYPL is materially undervalued and present a buying case at current levels — this narrative can attract value investors if management and guidance show signs of improvement. PayPal: Golden Buying Opportunity Before Q4 Earnings
• Neutral Sentiment: PayPal released its Q4 and full‑year 2025 results — the print and accompanying guidance will be the near‑term catalyst; investors should focus on revenue growth, active account trends, payment volume, margins, and any forward guidance changes. PayPal Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: BTIG reiterated a Neutral rating ahead of Q4 — the firm’s stance highlights caution: shares already trade with low forward P/E, so upside depends on execution and guidance rather than valuation alone. BTIG Maintains Neutral on PayPal (PYPL) Ahead of Q4 2025 Earnings
• Neutral Sentiment: Wall Street forecasts and price targets were adjusted ahead of earnings — this repricing is why volatility is elevated; watch post‑earnings analyst reactions for direction. Top Wall Street Forecasters Revamp PayPal Expectations Ahead Of Q4 Earnings
• Negative Sentiment: Analysts and previews warn competitive pressures remain a material risk to growth and margins — continued market share pressure or weak guidance could keep the stock under pressure. PayPal Q4 earnings preview: Competitive pressures remain a threat

Insider Activity at PayPal

In other news, insider Suzan Kereere sold 4,162 shares of the firm's stock in a transaction on Wednesday, November 19th. The shares were sold at an average price of $59.84, for a total transaction of $249,054.08. Following the completion of the transaction, the insider owned 30,983 shares of the company's stock, valued at approximately $1,854,022.72. This trade represents a 11.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Aaron Webster sold 9,282 shares of the firm's stock in a transaction dated Monday, November 10th. The stock was sold at an average price of $66.29, for a total value of $615,303.78. Following the transaction, the executive vice president owned 35,699 shares of the company's stock, valued at $2,366,486.71. This trade represents a 20.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.08% of the stock is owned by insiders.

Institutional Trading of PayPal

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Maia Wealth LLC raised its position in PayPal by 2.5% during the third quarter. Maia Wealth LLC now owns 6,404 shares of the credit services provider's stock valued at $424,000 after purchasing an additional 155 shares in the last quarter. GeoWealth Management LLC boosted its stake in shares of PayPal by 6.2% during the third quarter. GeoWealth Management LLC now owns 3,214 shares of the credit services provider's stock valued at $216,000 after purchasing an additional 188 shares during the period. Security National Bank of SO Dak boosted its position in PayPal by 2.0% during the 2nd quarter. Security National Bank of SO Dak now owns 13,438 shares of the credit services provider's stock valued at $999,000 after buying an additional 260 shares during the period. Prosperity Wealth Management Inc. boosted its holdings in shares of PayPal by 3.9% during the third quarter. Prosperity Wealth Management Inc. now owns 7,295 shares of the credit services provider's stock worth $489,000 after purchasing an additional 271 shares during the period. Finally, IHT Wealth Management LLC lifted its holdings in PayPal by 3.5% in the 2nd quarter. IHT Wealth Management LLC now owns 8,677 shares of the credit services provider's stock worth $645,000 after buying an additional 290 shares during the period. Institutional investors own 68.32% of the company's stock.

About PayPal

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and merchants to send and receive payments online, on mobile devices and at the point of sale. The company provides a broad set of payment solutions, including a digital wallet, merchant payment processing, checkout services, invoicing and fraud-management tools. PayPal's platform is designed to support e-commerce, in-person retail and person-to-person transfers, targeting both individual consumers and businesses of varying sizes.

Key products and services in PayPal's portfolio include the PayPal wallet and checkout ecosystem, the Venmo peer-to-peer mobile app, Braintree's developer-focused payment gateway, Xoom for international money transfers, and PayPal Credit and buy-now-pay-later options.

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