PayPal

PYPL Q2 2025 Earnings

Reported Jul 29, 2025 at 7:00 AM ET · SEC Source

Q2 25 EPS

$1.40

BEAT +8.00%

Est. $1.30

Q2 25 Revenue

$8.29B

BEAT +2.57%

Est. $8.08B

vs S&P Since Q2 25

-42.7%

TRAILING MARKET

PYPL -29.2% vs S&P +13.4%

Market Reaction

Did PYPL Beat Earnings? Q2 2025 Results

PayPal delivered a convincing beat in Q2 2025, posting non-GAAP EPS of $1.40 against a consensus estimate of $1.30, an 8.00% positive surprise, while revenue climbed 5.1% year-over-year to $8.29 billion, clearing expectations by 2.57%. The headline n… Read more PayPal delivered a convincing beat in Q2 2025, posting non-GAAP EPS of $1.40 against a consensus estimate of $1.30, an 8.00% positive surprise, while revenue climbed 5.1% year-over-year to $8.29 billion, clearing expectations by 2.57%. The headline numbers reflected meaningful operating leverage, with GAAP operating income rising 14% and transaction margin dollars, a metric management watches closely, growing 7% to $3.84 billion, signaling that the company's strategic pivot toward higher-margin branded checkout experiences is gaining traction. Total payment volume reached $443.55 billion, up 6%, and active accounts grew 2% to 438 million. Encouraged by the momentum, PayPal raised its full-year non-GAAP EPS guidance to $5.15 to $5.30, up from a prior range of $4.95 to $5.10. Yet shares fell after earnings, as investors focused on a deceleration in branded checkout payment volume growth, from 6% in Q1 to 5% in Q2, with tariff pressures cited as a contributing factor, tempering enthusiasm despite the otherwise strong quarter.

Key Takeaways

  • Strength in PayPal and Venmo branded checkout experiences
  • Growth in PSP and value-added services
  • Transaction margin dollars grew 7%, or 8% excluding interest on customer balances
  • GAAP operating margin expansion of 134 basis points to 18.1%
  • Non-GAAP operating margin expansion of 132 basis points to 19.8%
  • Active accounts grew 2% to 438 million
  • Total payment volume grew 6% to $443.5 billion
  • Payment transactions ex-PSP grew 6%
24/7 Wall St

PYPL YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

PYPL Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25
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PYPL Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“PayPal had a strong second quarter. We delivered another quarter of profitable growth, driven by continued strength across many of our strategic initiatives ranging from PayPal and Venmo branded experiences to PSP and value-added services. Based on our momentum, we are raising our full year transaction margin dollar and EPS guidance.”

— Alex Chriss, Q2 2025 Earnings Press Release