PayPal Reports Better-Than-Expected Q1 Earnings But Flags Uncertainty In Global Macro Environment

synopsis

PayPal Holdings, Inc. (PYPL) reported upbeat first-quarter profits on Tuesday but held back from updating its full-year guidance, citing uncertainty in the global macroeconomic environment.

The fintech company reported quarterly net revenue of $7.8 billion, marking a 1% year-over-year growth, which was below the analyst estimate of $7.84 billion, according to Finchat data.

The company’s net revenue from the U.S. declined marginally in the quarter, offset by a 3% increase in international net revenues. U.S. net revenue, however, accounted for 57% of the company’s overall revenue in the quarter.

PayPal’s adjusted earnings per share came in at $1.33, up from $1.08 in the corresponding period of 2024, and above an expected $1.16.

Total payment volume increased 3% to $417.2 billion despite a 7% decrease in the number of payment transactions to six billion.

PayPal CEO Alex Chriss said that the company had a “great start to the year.”

“This is our fifth consecutive quarter of profitable growth with progress across branded checkout, PSP, omnichannel, and Venmo,” he said. “Our foundation is solid, and we have multiple ways to win.”

The company maintained its full-year guidance, citing uncertainty in the global macro environment despite a strong start to the year.

PayPal now expects full-year adjusted EPS to be $4.95 to $5.10 and second-quarter (Q2) earnings to be $1.29 to $1.31.

PYPL stock is down by about 23% so far this year and by about 1% over the past 12 months.

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