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PayPal (NASDAQ:PYPL) shares fell sharply in early trading on Tuesday after the digital payments company posted mixed first-quarter earnings, with top-line results falling short of Wall Street forecasts.
Adjusted earnings per share came in at $1.33, surpassing the $1.16 consensus estimate and marking a 23% year-over-year increase.
However, revenue for the March quarter rose just 1% to $7.79 billion, trailing analysts' expectations of $7.85 billion. The sluggish growth was attributed to a slowdown in payment activity. Total payment volume rose 3% to $417.2 billion, while the number of transactions fell 6% to 6 billion.
The company reiterated its full-year 2025 guidance, forecasting adjusted EPS between $4.95 and $5.10. That range implies a slight beat over the $5-per-share average analyst estimate. Some investors may have expected an upgrade following the Q1 earnings beat.
For Q2 2025, PayPal projected adjusted EPS of $1.24 to $1.26, ahead of the $1.21 Wall Street estimate.
PayPal's stock slipped 3.5% on the day, extending a 24% year-to-date decline.
This article first appeared on GuruFocus.