Companies /Financial Services

PayPal Holdings Inc

NASDAQ: PYPL Credit Services
$54.31
▼ $7.16 (−11.65%) today
Markets open · 11:12am ET

Q1 2025 Earnings

Reported Apr 29, 2025, 7:01am ET · SEC source
$1.33
Beat +14.53%
EPS · est. $1.16
$7.8B
Miss −0.64%
Revenue · est. $7.8B
−0.4%
Trailing market
PYPL vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+3%+6%Apr 29Apr 30report 7:01am ETearnings−0.4%+2.5%
0+3%+6%Apr 29Apr 30earnings−0.4%+2.5%
PYPL +2.5%S&P 500 −0.4%
0+3%+6%Apr 29Apr 30report 7:01am ETearnings−0.6%+2.5%
0+3%+6%Apr 29Apr 30earnings−0.6%+2.5%
PYPL +2.5%NASDAQ −0.6%
0+4%+8%Apr 28May 7report 7:01am ETearnings+1.8%+8.1%
0+4%+8%Apr 28May 7earnings+1.8%+8.1%
PYPL +8.1%S&P 500 +1.8%
0+4%+8%Apr 28May 7report 7:01am ETearnings+2.4%+8.1%
0+4%+8%Apr 28May 7earnings+2.4%+8.1%
PYPL +8.1%NASDAQ +2.4%
+2.14%
Day of report
−0.72%
Next session
+2.61%
One week
+5.97%
30 days

S&P 500 over the same 30 days: +6.33%.

Did PYPL Beat Earnings? Q1 2025 Results

PayPal delivered a sharply mixed first quarter, posting earnings that cleared the bar by a wide margin while revenue came in fractionally light, setting up a nuanced conversation for investors. Adjusted EPS of $1.33 beat the $1.16 consensus estimate by 14.53%, driven by a 31% year-over-year surge in GAAP operating income to $1.53 billion and a 447-basis-point expansion in operating margin to 19.6%, as improved payment processing economics pushed the transaction margin rate to 47.7% from 45.0% a year ago. Revenue of $7.79 billion grew 1.2% year-over-year but missed the $7.84 billion consensus by 0.64%, reflecting modest top-line momentum as total payment volume rose 3% to $417.21 billion and active accounts climbed 2% to 436 million. CEO Alex Chriss framed the quarter as the company's fifth consecutive period of profitable growth, though PayPal left its full-year non-GAAP EPS guidance unchanged at $4.95 to $5.10, citing global macroeconomic uncertainty, with Q2 non-GAAP EPS guided to $1.29 to $1.31.

Key Takeaways
  • Fifth consecutive quarter of profitable growth
  • Transaction margin dollars grew 7% YoY to $3.7 billion
  • GAAP operating margin expanded 447 basis points to 19.6%
  • Non-GAAP operating margin expanded 257 basis points to 20.7%
  • Transaction expense rate improved to 0.89% from 0.97% a year ago
  • Restructuring charges declined significantly from $175M to $39M YoY
  • Active accounts grew 2% to 436 million
  • Payment transactions ex-PSP grew 6%

“PayPal had a great start to the year and our strategy is working. This is our fifth consecutive quarter of profitable growth with progress across branded checkout, PSP, omnichannel, and Venmo.”

PayPal CEO, on the earnings call

Forward Guidance & Outlook

PayPal is maintaining its full-year 2025 guidance despite a strong start to the year, citing uncertainty in the global macro environment. For Q2 2025, the company guides GAAP EPS of $1.24-$1.26 and non-GAAP EPS of $1.29-$1.31. For full-year 2025, GAAP EPS is expected at $4.80-$4.95 and non-GAAP EPS at $4.95-$5.10, unchanged from February 2025 guidance.

PYPL YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$3.0B$6.0B$7.7B$7.8BRevenue$1.2B$1.5BOperating Income$888.0M$1.3BNet Income
$0$3.0B$6.0BRevenueOperating IncomeNet Income

PYPL Revenue by Segment

Transaction Revenues$7.0B+0.0%
Other Value Added Services$775.0M+17.0%

PYPL Revenue by Geography

United States$4.5B+0.0%
Rest of World$3.3B+3.0%

Figures from SEC filings and company reports. Not investment advice.