PayPal Reports Mixed Financial Performance Amid Market Challenges

PayPal Holdings, Inc. (PYPL), with a market capitalization of $63.6 billion, provides a technology platform for digital payments to merchants and consumers globally. Based in San Jose, California, it offers services through well-known brand names such as PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy.

Market Performance Overview

Over the past 52 weeks, PYPL shares have underperformed relative to the broader market. The stock has decreased by 1.1% during this period, while the S&P 500 Index ($SPX) has risen by 11.7%. Year-to-date, PYPL is down 23.4%, contrasting sharply with the SPX’s more modest decline of 4.7%.

Financial Results and Future Projections

Following the release of its Q1 2025 results on April 29, PayPal’s stock climbed 2.1%. The company reported revenues of $7.8 billion, marking a 1% increase from the previous year. PayPal’s adjusted Earnings Per Share (EPS) was $1.33, a 23% rise year-over-year, and exceeded analyst expectations by 15.7%. Looking ahead, PayPal anticipates adjusted EPS for fiscal 2025 to be between $4.95 and $5.10.

Analyst Expectations

For the current fiscal year, ending December 2025, analysts forecast a greater than 9% increase in adjusted EPS, projecting it to reach $5.07. PayPal has consistently met or surpassed consensus estimates over the last four quarters, indicating a robust earnings surprise history.

Consensus Rating Insights

A survey of 44 analysts covering PYPL reveals a consensus rating of “Moderate Buy.” This includes 17 “Strong Buy” ratings, two “Moderate Buy” ratings, 22 “Holds,” and three “Strong Sells.” This sentiment reflects a slight dip from three months ago, when there were 18 “Strong Buy” ratings.

Price Target Adjustments

On April 30, Baird analyst Colin Sebastian raised PayPal’s price target to $79, while maintaining an “Outperform” rating. Currently, PYPL is trading below the mean price target of $81.61. Notably, the highest target from analysts is set at $125, indicating a potential upside of 91.1%.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.