PayPal Raises Profit Forecast Amidst Slow Branded Checkout Growth
PayPal (PYPL) reported third-quarter results featuring an 8% year-over-year increase in adjusted EPS, beating analyst estimates and prompting management to raise full-year profit guidance. However, the stock's reaction was muted due to concerns over slowing revenue growth and stagnant performance in its most profitable segment, branded checkout, which saw payment volume grow only 1% on a currency-neutral basis. While high-growth areas like Venmo (up 14%) and Buy Now, Pay Later (up 25%) are expanding, they represent a small fraction of total transaction margin dollars. Current earnings growth is being driven primarily by aggressive cost-cutting measures—targeting $1.5 billion in annual savings—and significant share buybacks rather than organic core business expansion. Investors remain cautious until the company demonstrates renewed momentum in its primary branded checkout service.
Tickers: $PYPL
Topics: branded checkout growth earnings beat guidance raise revenue miss transaction margin
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