PayPal (NASDAQ:PYPL) Issues Quarterly Earnings Results

PayPal (NASDAQ:PYPL) posted its quarterly earnings results on Tuesday. The credit services provider reported $1.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.29 by ($0.06), Briefing.com reports. PayPal had a net margin of 15.77% and a return on equity of 25.42%. The company had revenue of $8.68 billion during the quarter, compared to the consensus estimate of $8.82 billion. During the same period in the prior year, the company posted $1.19 EPS. PayPal’s quarterly revenue was up 4.0% on a year-over-year basis.

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

PYPL opened at $41.03 on Thursday. The stock has a fifty day moving average price of $58.06 and a 200 day moving average price of $64.85. The company has a current ratio of 1.29, a quick ratio of 1.34 and a debt-to-equity ratio of 0.49. PayPal has a 1 year low of $39.96 and a 1 year high of $79.74. The stock has a market cap of $38.39 billion, a price-to-earnings ratio of 7.58, a PEG ratio of 0.52 and a beta of 1.43.

PayPal Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be issued a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Wednesday, March 4th. PayPal’s dividend payout ratio (DPR) is currently 11.22%.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on PYPL. William Blair reissued a “market perform” rating on shares of PayPal in a research note on Tuesday. The Goldman Sachs Group cut their price target on shares of PayPal from $64.00 to $41.00 and set a “sell” rating on the stock in a report on Wednesday. Stephens reduced their price target on shares of PayPal from $65.00 to $45.00 and set an “equal weight” rating for the company in a research report on Wednesday. Morgan Stanley decreased their price objective on shares of PayPal from $50.00 to $34.00 and set an “underweight” rating for the company in a research note on Wednesday. Finally, Daiwa Capital Markets downgraded shares of PayPal from an “outperform” rating to a “neutral” rating and cut their target price for the company from $77.00 to $61.00 in a research note on Tuesday, January 13th. Ten investment analysts have rated the stock with a Buy rating, thirty-one have assigned a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $62.88.

Insider Transactions at PayPal

In other news, insider Suzan Kereere sold 4,162 shares of PayPal stock in a transaction dated 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 sale, the insider directly owned 30,983 shares in the company, valued at $1,854,022.72. The trade was a 11.84% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Aaron Webster sold 9,282 shares of the stock in a transaction that occurred on Monday, November 10th. The stock was sold at an average price of $66.29, for a total value of $615,303.78. Following the completion of the transaction, the executive vice president owned 35,699 shares in the company, valued at $2,366,486.71. This represents a 20.64% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.08% of the stock is owned by company insiders.

Hedge Funds Weigh In On PayPal

Hedge funds have recently bought and sold shares of the business. Kelleher Financial Advisors acquired a new stake in shares of PayPal in the third quarter worth about $30,000. Towarzystwo Funduszy Inwestycyjnych PZU SA increased its holdings in shares of PayPal by 60.7% during the 3rd quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 1,350 shares of the credit services provider’s stock valued at $91,000 after acquiring an additional 510 shares during the last quarter. Palisade Asset Management LLC bought a new position in shares of PayPal in the 3rd quarter valued at approximately $157,000. Truefg LLC acquired a new stake in PayPal in the 2nd quarter worth approximately $206,000. Finally, Main Street Financial Solutions LLC acquired a new stake in PayPal in the 2nd quarter worth approximately $210,000. 68.32% of the stock is owned by institutional investors and hedge funds.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Contrarian/bull case — some analysts and commentators see the post?earnings sell?off as a buying opportunity and a chance for outsized gains if execution improves; Macquarie has reaffirmed an Outperform rating with a $100 target. Is PayPal Offering Opportunity Macquarie Outperform Note
• Positive Sentiment: Some firms (RBC, Susquehanna) retained positive ratings despite lowering targets, signaling analytic disagreement about the depth/timing of the company’s recovery. RBC Cuts Target to $59 Susquehanna Lowers to $63
• Neutral Sentiment: Capital?return actions: PayPal announced a quarterly dividend and has signaled discretionary buybacks — supportive for near?term shareholder returns but flagged by some as trading growth for yield. TipRanks on Buybacks/Dividend
• Neutral Sentiment: Underlying transaction volume showed some growth (TPV up year?over?year) but branded?checkout growth is slowing — mixed operational signals that leave recovery dependent on execution. TPV Growth Note
• Negative Sentiment: Earnings and guidance miss — Q4 adjusted EPS of $1.23 vs. $1.29 expected and revenue slightly below consensus; management issued a weaker 2026 profit outlook, a primary driver of the sell?off. Q4 Results & Call
• Negative Sentiment: Leadership upheaval — CEO Alex Chriss was replaced and Enrique Lores will become CEO (interim until March 1). The surprise leadership change increased uncertainty about strategy/timing of a turnaround. TechCrunch: New CEO
• Negative Sentiment: Analyst downgrades and price?target cuts accelerated — multiple firms moved to Hold/Market?perform or lowered targets (Citi to $42, JPM to $46, Stephens $45, HSBC to Hold), amplifying selling pressure. TipRanks: Downgrades Roundup
• Negative Sentiment: Securities?law inquiries — several law firms have opened investigations into the gap between prior outlook and results, adding legal/ reputational risk. PR Newswire: Investigation
• Negative Sentiment: Market reaction — shares have slid to new multi?month lows and the sell?off wiped billions of market cap in a short period, raising the bar for any near?term rebound. AmericanBankingNews: Shares Down After Earnings

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.