PYPL posts solid Q3 gains as transaction revenues climb 6.4% year over year, powered by online shopping and mobile payment growth.
PayPal's buy now, pay later (BNPL) offering is heading north in time for the holidays. Beginning with this year's holiday shopping season, PayPal Pay in 4 will be available for consumers in Canada, according to a Monday (Nov. 10) press release.
PayPal remains a dominant player in digital payments, but its growth has cooled while competitors continue to expand. Comparing PayPal's valuation and fundamentals with those of Fiserv (FI) highlights an interesting contrast that could influence investors' next move.
PayPal remains a strong long-term buy, trading at historically low valuation multiples despite solid earnings and raised 2025 guidance. PayPal's growth is driven by Venmo, Buy Now Pay Later, merchant solutions, and new initiatives like PayPal World and AI partnerships. Management expects double-digit EPS growth, continues aggressive share buybacks, and introduced a modest dividend, signaling confidence in future performance.
PayPal reported Q3 2025 earnings, which highlight continued profitable growth of both the branded and unbranded segments. Venmo is a secularly attractive brand, with it becoming synonymous with peer-to-peer money transfers among younger consumers. BNPL is another highlight for PayPal this quarter, which I believe is poised to continue as it leverages PayPal's existing assets and scale.
PYPL delivered a double beat in 3Q and raised its FY2025 outlook. The new partnership with OpenAI should have been a bullish catalyst, but the market reaction remained muted. Key growth metrics, including TPV, transaction margin dollars, and active customer accounts, continue to show YoY slowdown. Management's decision to raise the full-year transaction margin dollar outlook was actually driven by stronger-than-expected 3Q results, which implies a muted 4Q outlook.
PayPal's stock has dropped 75% from its all-time high. Its business is maturing but its earnings are still growing.
PYPL posts growth in Q3 revenues, EPS and TPV, lifts 2025 outlook. However, shares slip as investors stay cautious.
Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
PayPal's new role as ChatGPT's default wallet cements its AI-commerce leadership and draws ETF investors seeking fintech growth exposure.
PayPal Holdings delivered strong Q3 results, with revenue and EPS beating estimates, yet the market underappreciated the performance. PYPL's branded and Venmo transaction growth accelerated, transaction margins improved, and a new quarterly dividend enhances its value proposition. Recent partnerships with OpenAI and Google expand the company's total addressable market and reinforce its fintech leadership through AI and agentic commerce initiatives.