PayPal (NASDAQ:PYPL) Posts Quarterly Earnings Results, Misses Estimates By $0.06 EPS

PayPal (NASDAQ:PYPL) released its quarterly earnings data on Tuesday. The credit services provider reported $1.23 earnings per share for the quarter, missing the consensus estimate of $1.29 by ($0.06), Briefing.com reports. PayPal had a net margin of 14.96% and a return on equity of 25.64%. The firm had revenue of $8.68 billion during the quarter, compared to the consensus estimate of $8.82 billion. During the same quarter in the previous year, the firm earned $1.19 earnings per share. The business’s revenue was up 4.0% compared to the same quarter last year.

Here are the key takeaways from PayPal’s conference call:

• Enrique Lores was appointed President & CEO (effective March 1) to accelerate execution and discipline, with Jamie as interim CEO during transition and David Dorman named Board Chair.
• Online branded checkout underperformed (1% Q4 TPV growth, currency-neutral) due to U.S. retail weakness, German softness, slower high-growth verticals and deployment issues; the company will prioritise experience, presentment, and selection and increase merchant-focused investments to restore momentum.
• Venmo, BNPL and PSP were bright spots — Venmo revenue rose ~20% to $1.7B with 100M+ active accounts, BNPL TPV exceeded $40B (+20% YoY), and enterprise/PSP profitability and margins meaningfully improved.
• For 2026 PayPal expects roughly flat-to-slightly-down transaction-margin dollars after about a ~3-point headwind from targeted growth investments (mainly branded checkout and BNPL); management guided to modest EPS pressure but reaffirmed ~$6B buybacks and at least $6B adjusted free cash flow.

PayPal Price Performance

Shares of PYPL stock opened at $52.33 on Tuesday. PayPal has a fifty-two week low of $52.06 and a fifty-two week high of $89.71. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.34 and a current ratio of 1.34. The firm has a market capitalization of $48.96 billion, a price-to-earnings ratio of 10.49, a PEG ratio of 0.66 and a beta of 1.43. The stock’s 50-day simple moving average is $58.87 and its 200-day simple moving average is $65.24.

Insider Activity at PayPal

In other news, EVP Aaron Webster sold 9,282 shares of PayPal stock in a transaction on Monday, November 10th. The shares were sold at an average price of $66.29, for a total transaction of $615,303.78. Following the completion of the sale, the executive vice president directly owned 35,699 shares in the company, valued at approximately $2,366,486.71. The trade was a 20.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Suzan Kereere sold 4,162 shares of the company’s stock in a transaction on Wednesday, November 19th. The shares were sold at an average price of $59.84, for a total value of $249,054.08. Following the completion of the transaction, the insider directly owned 30,983 shares in the company, valued at approximately $1,854,022.72. The trade was a 11.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.08% of the company’s stock.

Institutional Trading of PayPal

Several large investors have recently added to or reduced their stakes in the company. Kelleher Financial Advisors acquired a new position in shares of PayPal in the third quarter valued at about $30,000. Towarzystwo Funduszy Inwestycyjnych PZU SA boosted its position in PayPal by 60.7% in the third quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 1,350 shares of the credit services provider’s stock valued at $91,000 after buying an additional 510 shares during the last quarter. Palisade Asset Management LLC acquired a new position in PayPal in the 3rd quarter worth approximately $157,000. Quarry LP raised its position in PayPal by 11.2% during the 3rd quarter. Quarry LP now owns 2,880 shares of the credit services provider’s stock worth $193,000 after buying an additional 291 shares during the last quarter. Finally, Truefg LLC acquired a new stake in PayPal during the 2nd quarter valued at approximately $206,000. Hedge funds and other institutional investors own 68.32% of the company’s stock.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Board names Enrique Lores as President & CEO (effective March 1) and David W. Dorman as independent board chair — management change seen as a fresh leadership reset that could improve strategic execution and investor confidence. PayPal Appoints Enrique Lores as Chief Executive Officer and David W. Dorman as Independent Board Chair
• Positive Sentiment: Several opinion pieces argue PYPL is materially undervalued and present a buying case at current levels — this narrative can attract value investors if management and guidance show signs of improvement. PayPal: Golden Buying Opportunity Before Q4 Earnings
• Neutral Sentiment: PayPal released its Q4 and full‑year 2025 results — the print and accompanying guidance will be the near‑term catalyst; investors should focus on revenue growth, active account trends, payment volume, margins, and any forward guidance changes. PayPal Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: BTIG reiterated a Neutral rating ahead of Q4 — the firm’s stance highlights caution: shares already trade with low forward P/E, so upside depends on execution and guidance rather than valuation alone. BTIG Maintains Neutral on PayPal (PYPL) Ahead of Q4 2025 Earnings
• Neutral Sentiment: Wall Street forecasts and price targets were adjusted ahead of earnings — this repricing is why volatility is elevated; watch post‑earnings analyst reactions for direction. Top Wall Street Forecasters Revamp PayPal Expectations Ahead Of Q4 Earnings
• Negative Sentiment: Analysts and previews warn competitive pressures remain a material risk to growth and margins — continued market share pressure or weak guidance could keep the stock under pressure. PayPal Q4 earnings preview: Competitive pressures remain a threat

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on PYPL. Deutsche Bank Aktiengesellschaft lowered their price target on shares of PayPal from $75.00 to $65.00 and set a “hold” rating for the company in a research report on Friday, December 5th. Redburn Partners set a $50.00 target price on PayPal in a report on Wednesday, January 28th. Keefe, Bruyette & Woods lifted their price target on PayPal from $85.00 to $90.00 and gave the company an “outperform” rating in a report on Wednesday, October 29th. Stephens set a $65.00 price target on PayPal in a research report on Friday, January 16th. Finally, Wells Fargo & Company decreased their price objective on PayPal from $74.00 to $67.00 and set an “equal weight” rating for the company in a research note on Tuesday, December 9th. Twelve research analysts have rated the stock with a Buy rating, twenty-four have issued a Hold rating and six have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $73.10.

PayPal Company Profile

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and merchants to send and receive payments online, on mobile devices and at the point of sale. The company provides a broad set of payment solutions, including a digital wallet, merchant payment processing, checkout services, invoicing and fraud-management tools. PayPal’s platform is designed to support e-commerce, in-person retail and person-to-person transfers, targeting both individual consumers and businesses of varying sizes.

Key products and services in PayPal’s portfolio include the PayPal wallet and checkout ecosystem, the Venmo peer-to-peer mobile app, Braintree’s developer-focused payment gateway, Xoom for international money transfers, and PayPal Credit and buy-now-pay-later options.