PayPal Holdings Inc (NASDAQ:PYPL, ETR:2PP) topped Wall Street estimates for second-quarter earnings and revenue on Tuesday and raised its full-year profit forecast, as strong growth in branded checkout and Venmo helped boost payment volumes.
Non-GAAP earnings per share rose 18% to $1.40, above analysts’ average estimate of $1.30, while revenue climbed 5% year-over-year to $8.29 billion, exceeding expectations of $8.09 billion.
Total payment volume (TPV) grew 6% to $443.55 billion, with Venmo contributing $81.98 billion, a 12% increase from the prior year.
“We delivered another quarter of profitable growth, driven by continued strength across many of our strategic initiatives ranging from PayPal and Venmo branded experiences to PSP and value‑added services,” said CEO Alex Chriss in a statement.
Despite the strong quarter, shares of PayPal fell 7% in early trading Tuesday, as investors focused on third-quarter earnings guidance that largely aligned with expectations. The company forecast adjusted earnings per share of $1.18 to $1.22 for the current quarter, compared with analysts’ estimate of $1.21.
PayPal raised its full-year adjusted EPS guidance to a range of $5.15 to $5.30, up from previous expectations and ahead of the $5.10 consensus. The company also projected 2025 free cash flow between $6 billion and $7 billion.
Transaction margin dollars, a key profitability metric, rose 7% to $3.84 billion in the quarter. Active accounts reached 438 million, up 2% from the prior year.
Chriss said PayPal is investing in innovations such as agentic commerce, ads, stablecoins, and PayPal World, which he said will broaden the company’s global footprint and enhance its branded experiences.