PayPal (NASDAQ:PYPL) Posts Earnings Results, Beats Expectations By $0.14 EPS

Key Points

• PayPal reported a quarterly earnings per share (EPS) of $1.34, exceeding analysts' estimates of $1.21 by $0.13, with revenue increasing by 7.3% year-over-year.
• The company updated its Q4 2025 EPS guidance to a range of 1.270-1.310 and FY 2025 guidance to 5.350-5.390.
• PayPal's stock has a market cap of $67.12 billion and is currently rated as a "Hold" by multiple analysts, with an average price target of $82.46.

PayPal (NASDAQ:PYPL - Get Free Report) released its quarterly earnings data on Tuesday. The credit services provider reported $1.34 EPS for the quarter, beating analysts' consensus estimates of $1.20 by $0.14, Zacks reports. PayPal had a net margin of 14.49% and a return on equity of 25.35%. The business had revenue of $8.42 billion during the quarter, compared to analysts' expectations of $8.21 billion. During the same quarter in the prior year, the company earned $1.20 EPS. The firm's quarterly revenue was up 7.3% on a year-over-year basis. PayPal updated its Q4 2025 guidance to 1.270-1.310 EPS and its FY 2025 guidance to 5.350-5.390 EPS.

PayPal Price Performance

PayPal stock traded up $7.83 during mid-day trading on Tuesday, reaching $78.08. The company had a trading volume of 46,685,825 shares, compared to its average volume of 11,744,730. PayPal has a fifty-two week low of $55.85 and a fifty-two week high of $93.66. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.56. The company has a market cap of $74.60 billion, a P/E ratio of 16.62, a P/E/G ratio of 1.08 and a beta of 1.44. The business has a fifty day simple moving average of $68.95 and a 200 day simple moving average of $69.92.

Wall Street Analysts Forecast Growth

PYPL has been the topic of several recent research reports. Deutsche Bank Aktiengesellschaft set a $75.00 price target on PayPal in a research note on Tuesday, July 29th. Seaport Res Ptn upgraded PayPal from a "strong sell" rating to a "hold" rating in a report on Monday, July 14th. Macquarie restated an "outperform" rating and issued a $95.00 price target on shares of PayPal in a report on Wednesday, July 30th. JMP Securities cut their price target on PayPal from $110.00 to $100.00 and set a "market outperform" rating on the stock in a report on Wednesday, July 30th. Finally, Wells Fargo & Company upgraded PayPal to a "hold" rating in a report on Wednesday, October 22nd. Fifteen research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $82.46.

Insider Buying and Selling at PayPal

In other news, CAO Chris Natali sold 7,102 shares of PayPal stock in a transaction on Thursday, July 31st. The shares were sold at an average price of $69.35, for a total transaction of $492,523.70. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Suzan Kereere sold 4,162 shares of PayPal stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $69.39, for a total transaction of $288,801.18. Following the transaction, the insider owned 48,483 shares in the company, valued at approximately $3,364,235.37. This trade represents a 7.91% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 15,102 shares of company stock worth $1,046,607 over the last quarter. Corporate insiders own 0.08% of the company's stock.

Hedge Funds Weigh In On PayPal

Hedge funds have recently bought and sold shares of the company. Revolve Wealth Partners LLC bought a new position in PayPal during the fourth quarter worth $248,000. Brighton Jones LLC raised its stake in PayPal by 15.2% during the fourth quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider's stock worth $596,000 after buying an additional 924 shares during the last quarter. Sivia Capital Partners LLC raised its stake in PayPal by 41.5% during the second quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider's stock worth $332,000 after buying an additional 1,310 shares during the last quarter. IHT Wealth Management LLC increased its stake in PayPal by 3.5% in the second quarter. IHT Wealth Management LLC now owns 8,677 shares of the credit services provider's stock valued at $645,000 after purchasing an additional 290 shares in the last quarter. Finally, White Knight Strategic Wealth Advisors LLC increased its stake in PayPal by 17.3% in the second quarter. White Knight Strategic Wealth Advisors LLC now owns 7,063 shares of the credit services provider's stock valued at $525,000 after purchasing an additional 1,041 shares in the last quarter. Institutional investors own 68.32% of the company's stock.

PayPal Company Profile

PayPal Holdings, Inc operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards.