PayPal (PYPL) stock dove on Tuesday following the release of the financial services company’s Q1 2025 earnings report. That’s despite adjusted earnings per share of $1.33 beating Wall Street’s $1.16 estimate. Adjusted EPS also jumped 23% year-over-year.
Revenue for the quarter came in at $7.79 billion, which missed analysts’ estimate of $7.85 billion. Slow growth was behind this shortfall as revenue only increased 1% year-over-year from $7.7 billion in Q1 2024. This came as total payment volume grew 3% to $417.2 billion, but payment transactions decreased 6% to 6 billion.
PayPal stock slipped 2.14% after the company released its earnings report on Tuesday morning. That followed a 0.63% drop yesterday in the lead up to its Q1 results. Investors will also note that PYPL stock is down 23.93% year-to-date.
PayPal Guidance Update
PayPal maintained its 2025 guidance in its latest earnings report. It expects adjusted EPS of $4.95 to $5.10 for the year. With a midpoint of roughly $5.02 per share, this should see the company beat Wall Street’s estimate of $5 per share. Considering its strong Q1 earnings beat, investors may be disappointed that PayPal didn’t increase its 2025 guidance.
PayPal also provided guidance for Q2 2025 in its Q1 earnings report. The company expects adjusted EPS to range from $1.24 to $1.26. According to MainStreetData, this would beat Wall Street’s $1.21 per share estimate for the period.
Is PYPL Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for PayPal is Moderate Buy, based on 17 Buy, 16 Hold, and two Sell ratings over the last three months. With that comes an average price target of $84.69, representing a potential 30.43% upside for PYPL stock. These ratings and price targets will likely change as analysts update their coverage after today’s earnings.
