PayPal (PYPL 2.81%) reported increased active user numbers in the most recently completed quarter.
PayPal (PYPL 2.81%) has had a tough start to 2025, with its shares down more than 20%. However, the company recently turned in solid Q1 results and issued upbeat guidance while laying out its growth strategy for this year.
Earnings season is in full swing. While the barrage of information can be overwhelming, the fresh financial updates that executive teams provide can give investors a much-needed glimpse into how certain businesses are performing.
PayPal is trading near a FWD PEG ratio of 1 when looking at 2026 earnings expectations. PayPal trades below long-term growth rates in earnings, revenue, and free cash flow. Q1 earnings showed amazing growth in margin expansion and profitability, but revenue growth being only 1% is still the one black eye.
The market reaction to PayPal's Q1 2025 earnings was quite mixed, and this shows that the market is still undecided about the company's future. At the same time, the earnings release contained some important positives and, in my view, was yet another step in the right direction. The company's capital allocation is also working in favor of long-term investors and is one more reason to retain my Buy rating on the stock amidst the falling consumer confidence.
PayPal's Q1 2025 performance was strong, with $7.8 billion in revenue and a non-GAAP EPS of $1.33, beating estimates by $0.17. Despite doubling revenue and net income since 2017 and allocating $30 billion to share repurchases, PYPL shares remain undervalued, trading at 2017 levels. I recommend shifting from share repurchases to a hybrid approach of dividends and buybacks to unlock value and attract dividend-focused investors.
In this video, I will be going over PayPal's (PYPL 2.19%) first-quarter earnings report and key comments made by management during the earnings call. Watch the short video to learn more, consider subscribing, and click the special offer link below.
PayPal Holdings, Inc.'s stock has declined significantly, presenting a buying opportunity as it remains undervalued with a favorable risk-reward ratio despite short-term struggles. Q1 2025 results show minimal revenue growth but strong operating income and EPS growth, though free cash flow declined sharply. Management maintains optimistic long-term growth targets, expecting double-digit growth in transaction market dollars and non-GAAP EPS, supported by share buybacks and cost improvements.
PayPal's first-quarter 2025 results benefit from strong payment volume amid challenging macroeconomic conditions.
PayPal Holdings, Inc. reported better-than-expected Q1 earnings, with a significant EPS beat, despite a slight revenue miss, and shares are currently trading at an attractive valuation. The company demonstrated strong cost controls, reducing operating expenses by 2%, which contributed to a 16% increase in operating profits and a 23% EPS growth. PayPal continues to execute substantial share buybacks, reducing its share count by 1.5% in Q1 alone, with plans for $6 billion in buybacks this year.
Although the revenue and EPS for Paypal (PYPL) give a sense of how its business performed in the quarter ended March 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Here's our initial take on PayPal's (PYPL 0.08%) fiscal 2025 first-quarter financial report.