PayPal (PYPL) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy PYPL?
Source: NASDAQ.COM
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Analyst Views on PYPL
Wall Street analysts forecast PYPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PYPL is 72.86 USD with a low forecast of 51.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
29 Analyst Rating
6 Buy
19 Hold
4 Sell
Hold
Current: 52.330
Low
51.00
Averages
72.86
High
100.00
Current: 52.330
Low
51.00
Averages
72.86
High
100.00
About PYPL
PayPal Holdings, Inc. offers a technology platform. The Company’s products are designed to enable digital payments and simplify commerce experiences for consumers and merchants to make selling, shopping, and sending and receiving money simple, personalized, and secure, online or offline, including mobile. It provides consumers with a digital wallet that enables them to send payments to merchants securely using a variety of funding sources, which include a bank account, a PayPal or Venmo account balance, its consumer credit products, a credit card, a debit card, certain cryptocurrencies, or other stored value products. It operates a global, two-sided network at scale that connects consumers and merchants with 434 million active accounts across approximately 200 markets. Its brands include PayPal, Braintree, Venmo, Xoom, Hyperwallet, PayPal Zettle, PayPal Honey, and Paidy. It offers financing products through the PayPal Working Capital (PPWC) and PayPal Business Loan (PPBL).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
PayPal's Q4 Earnings Preview Ahead of Results
- Earnings Expectations: Analysts anticipate PayPal's Q4 revenue to reach $8.78 billion, up from $8.37 billion last year, reflecting a strong performance as the company has beaten revenue estimates in 8 of the last 10 quarters, potentially supporting a stock rebound.
- Earnings Per Share Forecast: The expected Q4 earnings per share is $1.29, an increase from $1.19 in the previous year, with the company having surpassed EPS estimates in 9 of the last 10 quarters, indicating sustained profitability improvements.
- Analyst Rating Dynamics: Ahead of the earnings report, analysts have mostly maintained neutral ratings on PayPal, with Cantor Fitzgerald initiating a Neutral rating at a $60 price target, while Piper Sandler lowered its target from $76 to $74, reflecting cautious market sentiment regarding future performance.
- Strategic Significance of Cymbio Acquisition: PayPal's recent announcement to acquire Cymbio is expected to enhance its capabilities in AI-driven commerce, with investors keen to understand the financial implications of this deal, particularly how it will improve customer targeting and merchant tool integration post-closure in the first half of 2026.
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Adyen: A Top Stock for Long-Term Investment
- Business Robustness: Adyen is a leading fintech company that offers integrated payment services, enabling clients to process over $1 trillion in payment volume globally, demonstrating its strong market position and consistent revenue generation.
- Growth Prospects: Despite a lackluster stock performance in recent years, Adyen is actively expanding into the U.S. market and plans to penetrate the large-format retail sector, initiatives expected to unlock significant revenue growth and margin improvement.
- Competitive Advantage: By providing risk management and fraud protection services without relying on intermediaries, Adyen has established a strong economic moat, ensuring high switching costs for clients and enhancing customer loyalty.
- Investment Appeal: With the current stock price around $15 and a robust gross margin of 83.34%, Adyen is viewed as a compelling long-term investment opportunity, particularly for patient investors looking for growth.
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PayPal (PYPL) Q4 2025 Earnings Call Transcript
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Palantir and Teradyne Stocks Surge Post Earnings
- Palantir Stock Surge: Following a fourth-quarter report that exceeded expectations, Palantir's shares jumped over 11%, driven by increased spending on AI data tools from businesses and government agencies, highlighting its potential as a rapidly growing and highly profitable software and consulting firm.
- Teradyne's Strong Performance: Teradyne's stock surged more than 20% after reporting better-than-expected fourth-quarter results, with management's fiscal Q1 guidance for 2026 significantly surpassing estimates, indicating robust demand that solidifies its market position.
- Sandisk's Continued Rise: Sandisk's stock rose another 4% after closing at record highs for four consecutive sessions, reflecting a more than 180% increase year-to-date, driven by strong momentum in AI infrastructure trades, despite JPMorgan suspending its rating for policy reasons.
- Alphabet's Financing Update: Alphabet's Waymo announced a $16 billion raise at a $126 billion valuation, with Alphabet contributing $13 billion, as analysts remain optimistic about fundamentals, forecasting an acceleration in the large-cap advertising market by 2026.
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PayPal Reports Increased Net Income in Q4 2026
- Net Income Growth: PayPal's net income for Q4 2026 reached $1.44 billion, a 28.6% increase from $1.12 billion in the previous year, although the market reacted negatively with a 16.57% drop in pre-market trading.
- Earnings Per Share Increase: The earnings per share for the quarter was $1.53, up 37.8% from $1.11 last year, indicating improved profitability, yet it fell short of analysts' expectations of $1.29.
- Adjusted Net Income Decline: Despite the growth in net income, adjusted net income decreased from $1.21 billion to $1.16 billion, highlighting challenges in cost management and special items that may impact future earnings outlook.
- Cautious Future Outlook: PayPal anticipates a mid-single digit decline in earnings per share for Q1 2026, with similar trends expected for the full year, reflecting a cautious stance towards the future market environment.
See More
PayPal Reports Disappointing Q4 Results and CEO Transition
- Weak Revenue Growth: PayPal's Q4 revenue grew only 4% year-over-year to $8.68 billion, falling short of the $8.80 billion analyst consensus, indicating increased pressure in market competition that may affect future investor confidence.
- Transaction Volume and Account Data: While total payment volumes rose 9% year-over-year to $475.1 billion, the number of payment transactions per active account decreased by 5%, averaging $57.7, reflecting weakened user engagement that could hinder future revenue growth.
- CEO Transition Impact: PayPal appointed Enrique Lores as the new CEO, succeeding Alex Chriss, with Lores' successful transformation experience at HP expected to bring new strategic direction and growth momentum to the company.
- Cautious Future Outlook: The company anticipates a mid-single-digit decline in adjusted EPS for Q1 2026, with management stating they will no longer commit to long-term financial targets, opting for annual guidance instead, reflecting a cautious stance given current market conditions.
See More
PayPal's Q4 Earnings Preview Ahead of Results
- Earnings Expectations: Analysts anticipate PayPal's Q4 revenue to reach $8.78 billion, up from $8.37 billion last year, reflecting a strong performance as the company has beaten revenue estimates in 8 of the last 10 quarters, potentially supporting a stock rebound.
- Earnings Per Share Forecast: The expected Q4 earnings per share is $1.29, an increase from $1.19 in the previous year, with the company having surpassed EPS estimates in 9 of the last 10 quarters, indicating sustained profitability improvements.
- Analyst Rating Dynamics: Ahead of the earnings report, analysts have mostly maintained neutral ratings on PayPal, with Cantor Fitzgerald initiating a Neutral rating at a $60 price target, while Piper Sandler lowered its target from $76 to $74, reflecting cautious market sentiment regarding future performance.
- Strategic Significance of Cymbio Acquisition: PayPal's recent announcement to acquire Cymbio is expected to enhance its capabilities in AI-driven commerce, with investors keen to understand the financial implications of this deal, particularly how it will improve customer targeting and merchant tool integration post-closure in the first half of 2026.
See More
Adyen: A Top Stock for Long-Term Investment
- Business Robustness: Adyen is a leading fintech company that offers integrated payment services, enabling clients to process over $1 trillion in payment volume globally, demonstrating its strong market position and consistent revenue generation.
- Growth Prospects: Despite a lackluster stock performance in recent years, Adyen is actively expanding into the U.S. market and plans to penetrate the large-format retail sector, initiatives expected to unlock significant revenue growth and margin improvement.
- Competitive Advantage: By providing risk management and fraud protection services without relying on intermediaries, Adyen has established a strong economic moat, ensuring high switching costs for clients and enhancing customer loyalty.
- Investment Appeal: With the current stock price around $15 and a robust gross margin of 83.34%, Adyen is viewed as a compelling long-term investment opportunity, particularly for patient investors looking for growth.
See More
PayPal (PYPL) Q4 2025 Earnings Call Transcript
See More
Palantir and Teradyne Stocks Surge Post Earnings
- Palantir Stock Surge: Following a fourth-quarter report that exceeded expectations, Palantir's shares jumped over 11%, driven by increased spending on AI data tools from businesses and government agencies, highlighting its potential as a rapidly growing and highly profitable software and consulting firm.
- Teradyne's Strong Performance: Teradyne's stock surged more than 20% after reporting better-than-expected fourth-quarter results, with management's fiscal Q1 guidance for 2026 significantly surpassing estimates, indicating robust demand that solidifies its market position.
- Sandisk's Continued Rise: Sandisk's stock rose another 4% after closing at record highs for four consecutive sessions, reflecting a more than 180% increase year-to-date, driven by strong momentum in AI infrastructure trades, despite JPMorgan suspending its rating for policy reasons.
- Alphabet's Financing Update: Alphabet's Waymo announced a $16 billion raise at a $126 billion valuation, with Alphabet contributing $13 billion, as analysts remain optimistic about fundamentals, forecasting an acceleration in the large-cap advertising market by 2026.
See More
PayPal Reports Increased Net Income in Q4 2026
- Net Income Growth: PayPal's net income for Q4 2026 reached $1.44 billion, a 28.6% increase from $1.12 billion in the previous year, although the market reacted negatively with a 16.57% drop in pre-market trading.
- Earnings Per Share Increase: The earnings per share for the quarter was $1.53, up 37.8% from $1.11 last year, indicating improved profitability, yet it fell short of analysts' expectations of $1.29.
- Adjusted Net Income Decline: Despite the growth in net income, adjusted net income decreased from $1.21 billion to $1.16 billion, highlighting challenges in cost management and special items that may impact future earnings outlook.
- Cautious Future Outlook: PayPal anticipates a mid-single digit decline in earnings per share for Q1 2026, with similar trends expected for the full year, reflecting a cautious stance towards the future market environment.
See More
PayPal Reports Disappointing Q4 Results and CEO Transition
- Weak Revenue Growth: PayPal's Q4 revenue grew only 4% year-over-year to $8.68 billion, falling short of the $8.80 billion analyst consensus, indicating increased pressure in market competition that may affect future investor confidence.
- Transaction Volume and Account Data: While total payment volumes rose 9% year-over-year to $475.1 billion, the number of payment transactions per active account decreased by 5%, averaging $57.7, reflecting weakened user engagement that could hinder future revenue growth.
- CEO Transition Impact: PayPal appointed Enrique Lores as the new CEO, succeeding Alex Chriss, with Lores' successful transformation experience at HP expected to bring new strategic direction and growth momentum to the company.
- Cautious Future Outlook: The company anticipates a mid-single-digit decline in adjusted EPS for Q1 2026, with management stating they will no longer commit to long-term financial targets, opting for annual guidance instead, reflecting a cautious stance given current market conditions.
See More
