PayPal Although we reported results that exceeded our second quarter expectations, we slowed growth in trading margins, an important measure of profitability. After the report, the stock slipped over 5%.
Here’s how the company compared it to Wall Street estimates based on analyst research by LSEG:
Earnings per share: $1.40 adjusted vs. $1.30 forecast: $82.9 billion vs. $8.08 billion
Revenues rose 5% from $7.89 billion the previous year as CEO Alex Chriss worked to roll off revenue streams with lower margins.
The trading margin dollar rose 7% to $3.84 billion, recording the company’s sixth quarter growth.
That metric growth slowed surges from 8% in the first quarter, when it excluded one-off profits that boosted results earlier this year. Brand checkout volumes also slowed to 5%, compared to 6% in the first quarter adjusted for LEAP day.
The total payment volume, which shows how digital payments are being made in the broader economy, beat the $443.6 billion estimate, according to StreetAccount. The number of active accounts rose 2% against expectations of 437.8 million.
PayPal’s stock has been nearly 10% lower so far this year.
PayPal shares fell 8.4% per year as of Monday’s closing, while NASDAQ has grown by around 10% in 2025.
Venmo’s revenues rose more than 20% from the previous year, following a 20% jump in the first quarter, but the company did not provide a dollar figure. Venmo’s total payments increased by 12%, increasing its highest growth rate in three years.
Chriss focuses on monetizing key acquisitions such as Braintree and Venmo. doordash, Starbucks Ticketmaster is also one of the companies that accepts Venmo as one way consumers can pay.
“The continued strength across many of our strategic initiatives, from PayPal and Venmo brand experiences to acting as payment service providers and other services, has led to another quarter of profitable growth,” Chriss said.
For the third quarter, PayPal adjusts for adjusted earnings between $1.18 to $1.22 per share, but the average analyst estimate was $1.20. Transaction margin dollars are expected to increase by 4% to $3.76 billion to $3.82 billion.
Prior to PayPal’s revenue, some analysts had hit a cautiously optimistic tone. Goldman Sachs noted that branded checkout growth is likely to improve sequentially from 4% in the first quarter.
Morgan Stanley pointed to stronger e-commerce data and progress on PayPal’s checkout initiative. The advanced integration is currently open to 45% of US merchants from 30% in December, and is expected to help branded checkout volumes rematch. The bank has also flagged the momentum ongoing with the Braintree volume.
PayPal is currently up from its forecast of $4.95 to $5.10, adjusting its revenues of $5.15 to $5.30 per share. Third quarter guidance is roughly inline as expected, but updated outlook means strong in the fourth quarter. The company also forecasts free cash flows of between $6 billion and $7 billion a year.
Watch: PayPal’s crypto lead to enable merchants to buy and sell virtual assets
