PayPal Holdings (NASDAQ:PYPL) will release its quarterly earnings report on Tuesday, 2025-10-28. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate PayPal Holdings to report an earnings per share (EPS) of $1.20.
The announcement from PayPal Holdings is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Earnings Track Record
During the last quarter, the company reported an EPS beat by $0.10, leading to a 2.44% drop in the share price on the subsequent day.
Here's a look at PayPal Holdings's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.3 | 1.16 | 1.12 | 1.07 |
| EPS Actual | 1.4 | 1.33 | 1.19 | 1.20 |
| Price Change % | -2.0 | -1.00 | 2.00 | -3.00 |
Performance of PayPal Holdings Shares
Shares of PayPal Holdings were trading at $69.77 as of October 24. Over the last 52-week period, shares are down 12.18%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Insights Shared by Analysts on PayPal Holdings
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on PayPal Holdings.
Analysts have given PayPal Holdings a total of 7 ratings, with the consensus rating being Neutral. The average one-year price target is $84.0, indicating a potential 20.4% upside.
Comparing Ratings Among Industry Peers
The following analysis focuses on the analyst ratings and average 1-year price targets of Fiserv, Block and Fidelity National Info, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Fiserv, with an average 1-year price target of $151.33, suggesting a potential 116.9% upside.
- Analysts currently favor an Buy trajectory for Block, with an average 1-year price target of $85.14, suggesting a potential 22.03% upside.
- Analysts currently favor an Neutral trajectory for Fidelity National Info, with an average 1-year price target of $80.43, suggesting a potential 15.28% upside.
Overview of Peer Analysis
In the peer analysis summary, key metrics for Fiserv, Block and Fidelity National Info are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| PayPal Holdings | Neutral | 5.11% | $3.84B | 6.23% |
| Fiserv | Outperform | 8.01% | $3.41B | 4.02% |
| Block | Buy | -1.64% | $2.54B | 2.47% |
| Fidelity National Info | Neutral | 5.06% | $952M | -3.22% |
Key Takeaway:
PayPal Holdings ranks highest in revenue growth among its peers. It also leads in gross profit margin. However, it has a lower return on equity compared to some peers. Overall, PayPal Holdings is positioned favorably compared to its peers in this analysis.
Unveiling the Story Behind PayPal Holdings
PayPal was spun off from eBay in 2015 and provides electronic payment solutions to merchants and consumers, with a focus on online transactions. The company had 434 million active accounts at the end of 2024. The company also owns Venmo, a person-to-person payment platform.
Key Indicators: PayPal Holdings's Financial Health
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Revenue Growth: PayPal Holdings displayed positive results in 3 months. As of 30 June, 2025, the company achieved a solid revenue growth rate of approximately 5.11%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Net Margin: PayPal Holdings's net margin excels beyond industry benchmarks, reaching 15.21%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): PayPal Holdings's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 6.23%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.57%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: PayPal Holdings's debt-to-equity ratio is below the industry average at 0.56, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for PayPal Holdings visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
