PayPal's Growth Outlook for the Next Three Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17 hours ago
0mins
Should l Buy PYPL?
Source: Fool
- Stock Decline: PayPal's stock has fallen approximately 40% over the past three years due to stagnant account and sales growth, although it currently trades at a historically low P/E ratio of nine times earnings, indicating potential undervaluation.
- Revenue Growth Constraints: Following eBay's switch to Adyen in 2018, PayPal's revenue growth faced significant throttling; while the pandemic provided temporary relief, sustaining that momentum has proven challenging amid increasing competition.
- User Growth Stagnation: From 2022 to 2025, PayPal's active accounts grew marginally from 435 million to 439 million, yet its revenue increased at a 6% CAGR, primarily driven by enhanced transaction frequency per user and effective cost management.
- Future Growth Expectations: Analysts forecast that from 2025 to 2028, PayPal's revenue and EPS will grow at CAGRs of 4% and 6%, respectively, with steady growth anticipated through the introduction of new products and services, enhancing its market position.
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Analyst Views on PYPL
Wall Street analysts forecast PYPL stock price to rise
29 Analyst Rating
6 Buy
19 Hold
4 Sell
Hold
Current: 44.670
Low
51.00
Averages
72.86
High
100.00
Current: 44.670
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.
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- Surge in Dispute Volume: In 2025, Visa processed over 106 million charge disputes globally, marking a 35% increase since 2019, highlighting the urgent need for efficient processing tools that enhance the company's competitive edge in the market.
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- Revenue Growth Constraints: Following eBay's switch to Adyen in 2018, PayPal's revenue growth faced significant throttling; while the pandemic provided temporary relief, sustaining that momentum has proven challenging amid increasing competition.
- User Growth Stagnation: From 2022 to 2025, PayPal's active accounts grew marginally from 435 million to 439 million, yet its revenue increased at a 6% CAGR, primarily driven by enhanced transaction frequency per user and effective cost management.
- Future Growth Expectations: Analysts forecast that from 2025 to 2028, PayPal's revenue and EPS will grow at CAGRs of 4% and 6%, respectively, with steady growth anticipated through the introduction of new products and services, enhancing its market position.
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- Surge in Dispute Volume: In 2025, Visa processed over 106 million charge disputes globally, marking a 35% increase since 2019, highlighting the urgent need for efficient processing tools that enhance the company's competitive edge in the market.
- Merchant Support Features: Three of the new tools focus on merchants, enabling them to proactively manage disputes before escalation by providing generative AI responses and detailed order insights, thereby reducing disputes arising from unfamiliar charges and improving customer satisfaction.
- Comprehensive Automation Platform: The other three tools support issuers and acquirers by utilizing predictive AI models for case analysis and establishing an integrated dispute management platform, aiming to shift from reactive to proactive management, thereby enhancing processing efficiency.
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- Leadership Change: PayPal announced the sudden departure of CEO Alex Chriss on February 3, 2026, admitting that execution on its 'Branded Checkout' initiative was below expectations and retracting its 2027 financial targets, highlighting a significant disconnect between internal operations and public optimism.
- Lawsuit Background: Hagens Berman has filed a class action lawsuit against PayPal and its executives, alleging violations of federal securities laws during the class period from February 25, 2025, to February 2, 2026, seeking to recover losses for all investors who purchased PayPal stock during this timeframe.
- Stock Price Crash: Following the leadership change and withdrawal of financial targets, PayPal's stock plummeted from $52.33 on February 2, 2026, to $41.70 on February 3, 2026, erasing over $10 billion in shareholder value in a single day, significantly impacting investor confidence.
- Investor Action: Investors are urged to apply by April 20, 2026, to become Lead Plaintiff in the lawsuit, reflecting a strong concern for corporate governance and transparency in light of the recent developments.
See More
PayPal's Growth Outlook for the Next Three Years
- Stock Decline: PayPal's stock has fallen approximately 40% over the past three years due to stagnant account and sales growth, although it currently trades at a historically low P/E ratio of nine times earnings, indicating potential undervaluation.
- Revenue Growth Constraints: Following eBay's switch to Adyen in 2018, PayPal's revenue growth faced significant throttling; while the pandemic provided temporary relief, sustaining that momentum has proven challenging amid increasing competition.
- User Growth Stagnation: From 2022 to 2025, PayPal's active accounts grew marginally from 435 million to 439 million, yet its revenue increased at a 6% CAGR, primarily driven by enhanced transaction frequency per user and effective cost management.
- Future Growth Expectations: Analysts forecast that from 2025 to 2028, PayPal's revenue and EPS will grow at CAGRs of 4% and 6%, respectively, with steady growth anticipated through the introduction of new products and services, enhancing its market position.
See More
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- Growth Challenges: PayPal's stock has declined approximately 40% over the past three years due to stalled account and sales growth, although its current P/E ratio of nine times earnings suggests potential undervaluation.
- Revenue Setbacks: The loss of eBay as a payment partner in 2018 throttled PayPal's revenue growth, and while the pandemic provided temporary relief, sustaining that momentum has proven difficult amid increasing competition.
- Declining Take Rates: PayPal's transaction take rate has dropped from 2.89% in 2015 to 1.66% in 2025, primarily due to reliance on lower-margin platforms like Braintree and Venmo, which has pressured overall profitability.
- Future Outlook: Analysts expect PayPal's revenue and EPS to grow at CAGRs of 4% and 6% from 2025 to 2028, respectively, with the potential for its stock to double to over $100 in the next three years, contingent on stabilizing its profitability metrics.
See More
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