PayPal Eyes Double-Digit EPS Growth By 2027, Teams Up With Verifone, J.P. Morgan & More

PayPal Holdings, Inc. PYPL traded higher premarket on Tuesday after the company issued an outlook ahead of its Investor Day event.

The company reiterated guidance for adjusted EPS growth of 6%-10% and transaction margin dollar growth, excluding the impact of interest on customer balances of growth of at least 5%.

The company expects high single-digit transaction margin dollar growth and low teens+ adjusted EPS growth by 2027. 

For the long term, PayPal sees transaction margin dollar growth, excluding the impact of interest on customer balances of 10%+ and adjusted EPS growth of 20%+.

Apart from this, PayPal will introduce PayPal Open, a unified platform for businesses to access and integrate commerce tools, including payments, financial services and risk solutions. It will be launched in the U.S. soon, with expansions to the UK and Germany next year and more markets to follow.

PayPal is also expanding its partnership with Verifone to provide enterprise merchants with a seamless omni-channel payment solution.

Also, the company strengthened its partnership with J.P. Morgan Payments to introduce Fastlane for merchants in the UK and Europe. It is expected to enhance guest checkout speed by over 36% compared to traditional methods.

Earlier this month, the company reported fiscal fourth-quarter revenue growth of 4% year over year to $8.37 billion, topping the analyst consensus estimate of $8.26 billion and adjusted EPS of $1.19, beating the analyst consensus estimate of $1.12.

Investors can gain exposure to the stock via Direxion Shares ETF Trust Direxion Daily Crypto Industry Bull 2X Shares LMBO and iShares FinTech Active ETF BPAY.

Price Action: PYPL shares are up 2.92% at $77.45 premarket at the last check Tuesday.

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