PayPal Holdings Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.53%.
Did PYPL Beat Earnings? Q3 2025 Results
PayPal capped a strong third quarter of 2025 with results that cleared the bar on both top and bottom lines, <a href="https://247wallst.com/investing/2025/10/28/why-paypal-is-up-10-after-q3-earnings/">sending shares sharply higher</a> as investors welcomed signs that CEO Alex Chriss's turnaround narrative is gaining real traction. Non-GAAP EPS of $1.34 came in 11.25% ahead of the $1.20 consensus estimate, while revenue of $8.42 billion grew 7.3% year over year and topped expectations by 2.21%, driven by broad-based momentum across PayPal's branded checkout, PSP, and Venmo businesses. Transaction margin dollar growth remained on track for the company's 6% to 7% full-year target, and total payment volume climbed to $458.09 billion, up 8%. Perhaps as significant as the headline numbers, PayPal's board declared the company's first-ever quarterly cash dividend of $0.14 per share, a milestone underscoring confidence in sustained free cash flow generation of $1.72 billion in the quarter. Management raised full-year non-GAAP EPS guidance to $5.35 to $5.39 and guided Q4 non-GAAP EPS to $1.27 to $1.31, while flagging strategic partnerships with Google, OpenAI, and Perplexity as part of a longer-term push into AI-powered commerce.
- Broad-based profitable growth across branded experiences, PSP, and Venmo
- Total payment volume increased 8% to $458.1 billion
- Transaction margin dollars grew 6% to $3.9 billion
- Transaction margin dollars excluding interest on customer balances grew 7% to $3.6 billion
- Payment transactions ex-PSP increased 7%
- International net revenues grew 10% YoY
- Other value added services revenue grew 15% YoY
- GAAP EPS benefited from favorable swing in strategic investment portfolio impacts
“PayPal delivered another strong quarter and we are raising guidance, with broad-based profitable growth across branded experiences, PSP, and Venmo. 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.”
PayPal CEO, on the earnings call
Forward Guidance & Outlook
PayPal raised its full-year 2025 guidance following Q3 results. For Q4 2025, the company guides GAAP EPS of $1.23–$1.27 and non-GAAP EPS of $1.27–$1.31 (vs. $1.19 prior year). For full-year 2025, GAAP EPS guidance was raised to $5.11–$5.15 (from $4.90–$5.05) and non-GAAP EPS to $5.35–$5.39 (from $5.15–$5.30). The company is on pace for 6%–7% transaction margin dollar growth in 2025 excluding interest on customer balances. Free cash flow guidance was reaffirmed. PayPal is also building for an agentic future through partnerships with Google, OpenAI, and Perplexity.
PYPL YoY Financials
PYPL Revenue by Segment
PYPL Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.