PayPal Holdings Inc (NASDAQ:PYPL) reported Q1 non-GAAP EPS of $1.33, topping analysts' average estimate of $1.16, while revenue of $7.80 billion missed the Street by $40 million. The mixed beat-miss highlights PayPal's challenge to reignite growth amid contract headwinds and a cautious consumer backdrop.
EARNINGS AND REVENUE Earnings: Non-GAAP EPS rose 15% YoY to $1.33 vs. $1.16 expected. Revenue: Up 1% to $7.80 billion, shy of the $7.84 billion consensus.
PAYMENT VOLUME & TRANSACTIONS TPV: Total payment volume increased 3% YoY to $417.2 billion (4% FX-neutral). Transactions: Processed 6.0 billion payments, down 7% overall but up 6% excluding payment service provider (PSP) renegotiations. Margin: Transaction-margin dollars grew low?single-digits, reflecting branded-checkout strength offset by PSP mix shifts.
USER METRICS Active Accounts: Grew 2% YoY to 436 million, adding 1.5 million sequentially. TPA: Transactions per active account fell 1% to 59.4 but climbed 4% ex-PSP volume.
MANAGEMENT COMMENTARYCEO Alex Chriss said branded-checkout enhancements and Venmo debit-card adoption drove durable margin expansion, noting PayPal has the best-in-class checkout on desktop and mobile. CFO Jamie Miller underscored $1.2 billion in Q1 share buybacks and full-year free cash flow of $6.8 billion, crediting AI and automation investments for operational efficiency and supporting targeted marketing spend.
STRATEGIC INITIATIVESPayPal's 2025 playbook centers on four pillars: Win Checkout via latency cuts and conversion lifts; Scale Omni with PayPal Everywhere; Grow Venmo through new social-commerce features; and Accelerate SMB with integrated payment and financing tools. Key partnerships and product launcheslike FX-as-a-service and network-token billingare set to boost cross-sell opportunities.
OUTLOOKThe company reaffirmed full-year guidance of $4.955.10 in non-GAAP EPS and 4.55% transaction-margin-dollar growth. Investors will watch Q2 results in late July and November's Investor Day for deeper visibility on execution and medium-term targets.
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