PayPal Stock Surges on Q3 Earnings Beat and OpenAI Partnership
PayPal’s stock (PYPL) rose significantly following the release of its Q3 2025 earnings report. The financial results surpassed analyst expectations, contributing to stronger investor sentiment.
Key Financial Highlights
In the earnings report, PayPal reported adjusted earnings per share (EPS) of $1.34. This figure exceeded Wall Street’s estimate of $1.20 and marked a 12% increase from the previous year.
- Revenue: $8.4 billion, surpassing estimates of $8.24 billion.
- Year-over-Year Growth: Revenue increased by 7%.
- Total Payment Volume: Rose 8% to $458.1 billion.
Strategic Partnership with OpenAI
A notable development in the report was PayPal’s announcement of a partnership with OpenAI, the creator of ChatGPT. Starting next year, PayPal services will be integrated into the ChatGPT platform, allowing users to conduct transactions through this AI application.
Stock Performance
On the day after the earnings report, PayPal’s stock saw a pre-market increase of 14.19%. This followed a previous day’s gain of 0.69%. Despite this surge, the stock remains down 17.69% year-to-date and 12.49% over the last 12 months.
Updated Guidance for 2025
PayPal revised its earnings guidance for the full year 2025, now projecting an adjusted EPS between $5.35 and $5.39. This update is a step up from the previous range of $5.15 to $5.30 and indicates a potential to exceed Wall Street’s estimate of $5.24.
Q4 Expectations
For the upcoming fourth quarter of 2025, PayPal expects an adjusted EPS in the range of $1.27 to $1.31, aligning closely with analysts’ expectations of $1.31.
Analyst Ratings and Stock Outlook
Wall Street’s consensus rating for PayPal remains at Hold, based on the evaluation of 10 Buy ratings, 15 Hold ratings, and three Sell ratings over the past three months. The average price target for PYPL stock is set at $80.60, indicating a potential upside of 14.73% for investors.
