Why Did PayPal Stock Jump Today?

By Johnny Rice | October 28, 2025, 5:05 PM

Key Points

  • PayPal released better-than-expected quarterly earnings today.

  • The company also announced users of ChatGPT will be able to use PayPal to pay for products using AI.

Shares of PayPal (NASDAQ: PYPL) jumped on Tuesday, finishing the day up 3.9%. The move came as the S&P 500 and the Nasdaq Composite gained 0.2% and 0.8%, respectively.

PayPal stock spiked as much as 12.8% today after the company released its third-quarter earnings, topping Wall Street's targets. The company also announced a key partnership with OpenAI.

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ChatGPT users will be able to pay with their PayPal wallets

PayPal's Q3 numbers came in better than analysts had expected. The company's adjusted earnings per share (EPS) of $1.34 on sales of $8.4 billion beat consensus targets of $1.20 a share on $8.2 billion. PayPal also announced, for the first time, it will pay shareholders a dividend of 14 cents per share.

The company also announced a deal with OpenAI to integrate its payment systems into the ChatGPT interface. Users will be able to pay for products directly through the AI tool using their PayPal digital wallets.

The OpenAI logo.

Image source: Getty Images.

PayPal CEO Alex Chriss said that "hundreds of millions of loyal PayPal wallet holders" will soon be able to "have a safe and secure checkout experience" directly through ChatGPT.

PayPal has inked deals with other AI providers, and its latest earnings release indicates Chriss's turnaround efforts are working. I think it's worth owning at its current valuation.

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short December 2025 $75 calls on PayPal. The Motley Fool has a disclosure policy.

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