Shares of PayPal Holdings, Inc. (NASDAQ: PYPL) jumped 8% on Tuesday following the corporate’s launch of its third quarter 2025 earnings outcomes. Income and earnings got here forward of expectations and the corporate raised its outlook for the complete 12 months. It additionally introduced its partnership with OpenAI to energy agentic commerce.
Higher-than-expected outcomes
In Q3 2025, PayPal’s income and earnings elevated on a year-over-year foundation and beat estimates. Web revenues elevated 7% to $8.4 billion, exceeding expectations of $8.2 billion. GAAP earnings per share grew 32% to $1.30. Adjusted EPS rose 12% to $1.34, surpassing projections of $1.21.
Enterprise efficiency
Within the third quarter, transaction margin {dollars} elevated 6% to $3.9 billion. Complete fee quantity elevated 8% whereas fee transactions decreased 5%. The drop in fee transactions mirrored decrease Enterprise Funds transactions. Lively accounts rose 1% and month-to-month energetic accounts had been up 2%, with contributions from PayPal client accounts and Venmo.
In Q3, PayPal noticed a 6% progress in transaction income, pushed by progress throughout the portfolio, together with branded experiences, PSP, and Venmo. Income from different value-added providers grew 15%, pushed by energy in client and service provider credit score. US revenues grew 5% to $4.7 billion whereas worldwide revenues rose 10% to $3.6 billion YoY.
PayPal introduced it’s partnering with OpenAI to supply immediate checkout and sooner funds processing to customers and retailers by way of the adoption of the Agentic Commerce Protocol. This partnership will present ChatGPT customers with sooner and extra handy funds and commerce providers.
Steering hike
Primarily based on its robust quarterly efficiency, PayPal raised its outlook for the complete 12 months of 2025. The corporate now expects transaction margin {dollars} to vary between $15.45-15.55 billion versus the prior expectation of $15.35-15.50 billion.
GAAP EPS is now anticipated to vary between $5.11-5.15 and adjusted EPS is predicted to vary between $5.35-5.39 in FY2025 versus the earlier ranges of $4.90-5.05 for GAAP EPS and $5.15-5.30 for adjusted EPS.
For the fourth quarter of 2025, PYPL expects transaction margin {dollars} of $4.02-4.12 billion, GAAP EPS of $1.23-1.27, and adjusted EPS of $1.27-1.31. This outlook represents a YoY progress of 2-5% in transaction margin {dollars} and 7-10% in adjusted EPS.
