PayPal (NASDAQ:PYPL) Issues Quarterly Earnings Results, Misses Expectations By $0.06 EPS

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

PayPal Trading Down 0.7%

NASDAQ:PYPL opened at $52.33 on Tuesday. The firm has a market capitalization of $48.96 billion, a price-to-earnings ratio of 10.49, a price-to-earnings-growth ratio of 0.66 and a beta of 1.43. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.34 and a quick ratio of 1.34. The business has a fifty day moving average price of $58.87 and a 200-day moving average price of $65.24. PayPal has a one year low of $52.06 and a one year high of $89.71.

Insider Transactions at PayPal

In other PayPal news, EVP Aaron Webster sold 9,282 shares of the firm’s stock in a transaction that occurred 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 sale, the executive vice president owned 35,699 shares in the company, valued at approximately $2,366,486.71. This trade represents a 20.64% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, 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 stock was sold at an average price of $59.84, for a total transaction of $249,054.08. Following the completion of the transaction, the insider directly owned 30,983 shares of the company’s stock, valued at $1,854,022.72. This represents a 11.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.08% of the stock is owned by insiders.

Hedge Funds Weigh In On PayPal

Several institutional investors have recently added to or reduced their stakes in PYPL. Revolve Wealth Partners LLC acquired a new stake in PayPal in the fourth quarter valued at approximately $248,000. United Bank grew its holdings in shares of PayPal by 40.1% during the 2nd quarter. United Bank now owns 17,388 shares of the credit services provider’s stock worth $1,292,000 after purchasing an additional 4,974 shares during the period. Brighton Jones LLC boosted its position in shares of PayPal by 15.2% during the 4th quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider’s stock worth $596,000 after purchasing an additional 924 shares during the period. Sivia Capital Partners LLC grew its position in PayPal by 41.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider’s stock valued at $332,000 after acquiring an additional 1,310 shares in the last quarter. Finally, PharVision Advisers LLC purchased a new position in PayPal in the 3rd quarter valued at approximately $228,000. Hedge funds and other institutional investors own 68.32% of the company’s stock.

Analyst Ratings Changes

Several research firms recently weighed in on PYPL. Raymond James Financial restated a “hold” rating on shares of PayPal in a research note on Thursday, January 15th. HSBC cut their target price on PayPal from $93.00 to $72.00 and set a “buy” rating on the stock in a research note on Tuesday, January 27th. Macquarie lifted their price target on PayPal from $95.00 to $100.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 29th. Mizuho cut their price objective on shares of PayPal from $84.00 to $75.00 and set an “outperform” rating on the stock in a research report on Monday, December 22nd. Finally, JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $70.00 target price (down from $85.00) on shares of PayPal in a report on Thursday, December 4th. Twelve investment analysts have rated the stock with a Buy rating, twenty-four have assigned a Hold rating and six have given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $73.10.

PayPal News Roundup

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

About PayPal

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.