PayPal's third-quarter adjusted EPS rose 8% year over year, beating analyst estimates, and management raised full-year profit guidance, yet the stock was up only 1% at 2 p.m. ET on earnings day. Revenue grew 2% to $8.58 billion, below expectations, and branded checkout payment volume rose just 1% on a currency-neutral basis, the fourth straight quarter in the 1% to 2% range, while the take rate fell to 1.58% from 1.64%. Venmo payment volume grew 14%, BNPL volume 25%, and US PayPal and Venmo debit card volume more than 60%. Most earnings growth came from cost cuts, with over 2,000 roles eliminated and savings targeted at over $1.5 billion annually, plus $6 billion of buybacks over 12 months that cut the weighted share count by 11%. The article argues the market doubts the core business will grow again, noting the stock trades below 10 times expected 2026 earnings.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: PayPal Just Raised Its Profit Forecast, and the Stock Barely Moved. Here’s Why
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