Major U.S. equities indexes climbed to fresh intraday highs Tuesday in the wake of strong corporate earnings and as the Federal Reserve's two-day meeting kicked off. The Dow Jones Industrial Average, Nasdaq, and S&P 500 all set fresh records for a third straight session.
PayPal Holdings Inc (NASDAQ:PYPL, ETR:2PP) shares powered nearly 11% higher in early trading on Tuesday after the company announced an agreement with OpenAI that will allow ChatGPT users to buy products using PayPal's payment platform. Beginning next year, PayPal users can purchase items through the AI platform, and its merchants can sell on ChatGPT, with their inventory listed there.
While the top- and bottom-line numbers for Paypal (PYPL) give a sense of how the business performed in the quarter ended September 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
The fintech sector is buzzing today, after two heavyweights stepped into the earnings confessional.
PayPal beat earnings and revenue, raised guidance, and launched its first-ever quarterly dividend.
Paypal (PYPL) came out with quarterly earnings of $1.34 per share, beating the Zacks Consensus Estimate of $1.19 per share. This compares to earnings of $1.2 per share a year ago.
PayPal is also instituting its first dividend, boosting its full-year forecast and partnering with OpenAI.
PayPal Holdings, Inc. is rated a Strong Buy, as it remains undervalued despite recent share price underperformance and cautious market sentiment. Q3 earnings are expected to be a key catalyst, with solid revenue growth, positive analyst revisions, and a strong historical earnings surprise record. Recent partnerships with Google and BigCommerce, plus the launch of PayPal Ads Manager, position PYPL for long-term growth and ecosystem expansion.
Paxos, the blockchain partner of PayPal, mistakenly minted $300 trillion worth of the online payment giant's stablecoin last week in what the company called a “technical error.” Chad Cascarilla, Paxos CEO, joins CNBC's 'Money Movers' to discuss what happened.
PYPL's Q3 results hinge on transaction revenues, fueled by Venmo growth, new payment features and rising digital commerce trends.
PayPal is trading at historically low valuations, despite ongoing revenue and profit growth. New growth drivers include Braintree's contract renegotiations, advertising expansion, crypto initiatives, and rapid adoption of Venmo and debit cards. PYPL's forward P/E ratio and FCF yield are significantly below its growth potential, with innovations and partnerships positioning it for outperformance.
Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) gained 1.76% over the past month after losing 3.41% and 11.12% the two months prior.