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PayPal PYPL is set to report its first-quarter 2025 results on April 29.
PYPL expects flat to low single-digit revenue growth on a currency-neutral basis for the to-be-reported quarter. Non-GAAP earnings are expected between $1.15 per share and $1.17 per share, suggesting 6-8% growth on a year-over-year basis.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $7.83 billion, indicating an increase of 1.64% from the year-ago quarter’s reported figure.
The consensus mark for earnings stands at $1.15 per share, down by a penny over the past 30 days, suggesting a decline of 17.86% from the figure reported in the year-ago quarter.
PayPal Holdings, Inc. Price and Consensus
PayPal Holdings, Inc. price-consensus-chart | PayPal Holdings, Inc. Quote
PayPal’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with an average surprise of 14.26%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Let’s see how things have shaped up for the upcoming announcement.
Strong Portfolio, Rich Partner Base to Aid PYPL’s Q1 Results
PYPL’s first-quarter results are expected to reflect portfolio strength. Fastlane, which enhances the guest checkout experience by allowing users to complete their purchase in one click, remains noteworthy. Strong monetization efforts of Venmo are likely to have aided Total Payments Volume in the to-be-reported quarter.
PYPL’s rich partner base, which includes Amazon AMZN, Shopify SHOP, Apple, Alphabet and Meta Platforms META, has been a key catalyst. The integration of PayPal and Venmo credit or debit cards into Apple Wallet has been a noteworthy development.
PayPal is now an additional processor for Shopify Payments in the United States. Its branded checkout solutions are now integrated into Shopify Payments. This creates a single and unified experience for business owners to drive operational efficiency. PayPal’s partnership with Amazon now brings PayPal Checkout to SMBs, offering Buy with Prime. Its collaboration with Apple and Google to integrate the Venmo debit card with Apple Pay and Google Pay has been a noteworthy development.
PayPal is a top payment method for advertisers and consumers globally across Meta Platforms’ family of apps. Creators and developers are using Hyperwallet. META also uses Braintree for credit card processing.
PayPal is expanding value-added services to boost the merchant experience. In the fourth quarter of 2024, PYPL launched FX-as-a-service, which is an automated currency conversion, and the platform is already live on Meta Platforms. PYPL’s network tokens for automated billing capabilities are live with merchants, including Instacart, Mint Mobile and Poshmark. Expanding value-added services is expected to drive transaction margin in dollar terms. PayPal Everywhere, which was launched in September 2024, is driving significant increases in debit card adoption and opening new categories of spend.