PayPal Holdings (NASDAQ:PYPL) shares trade near 52-week lows ahead of fourth-quarter financial results. Could a strong earnings report on Tuesday before the market opens help lift PayPal stock?
Here are the earnings estimates, analyst ratings and key items to watch.
PayPal Q4 Earnings
Analysts expect PayPal to report fourth-quarter revenue of $8.78 billion, up from $8.37 billion in last year's fourth quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in eight of the last 10 quarters, including in two straight quarters.
Analysts expect PayPal to report fourth-quarter earnings per share of $1.29, up from $1.19 in last year's fourth quarter.
The company has beaten analyst estimates in six straight quarters and in nine of the last 10 quarters overall.
Guidance from the company calls for fourth-quarter earnings per share to be in a range of $1.27 to $1.31.
PayPal Analyst Ratings
Analysts have been mostly neutral on PayPal stock heading into the quarterly earnings results. Here are the latest analyst ratings on PayPal and their price targets:
- Cantor Fitzgerald: Initiated with a Neutral rating, price target $60
- Piper Sandler: Maintained Neutral rating, lowered price target from $76 to $74
- Susquehanna: Maintained Positive rating, lowered price target from $94 to $90
- Citigroup: Maintained Neutral rating, lowered price target from $78 to $60
Key Items to Watch for PayPal's Q4 Earnings
PayPal's financial results come after the company recently announced it would acquire Cymbio. The acquisition is expected to boost the company's efforts for AI-driven commerce.
PayPal could share more details on the acquisition and what it could mean for financials, with the deal expected to close in the first half of 2026.
Founded in 2015, Cymbio helps merchants connect to marketplaces and AI shopping experiences. PayPal will integrate Cymbio into its platform and could better target customers and offer more tools for its merchant partners.
PayPal's third-quarter financial results saw shares trade higher after a double beat, the initiation of a dividend plan, and a collaboration with OpenAI. The news wasn't enough to keep shares higher as the stock now trades at 52-week lows.
In the third quarter, PayPal reported total payment volume of $458.1 billion, up 8% year-over-year. The company saw payment transactions down 5% year-over-year in the quarter, with payment transactions per active account declining.
Investors and analysts will likely be looking for more payment volume growth, but also want to see a rebound in payment transactions.
Another key figure to watch will be active accounts. PayPal reported 438 million active accounts in the third quarter, up 1% year-over-year.
Along with the Cymbio acquisition, investors and analysts will be looking for more details on PayPal's AI plans, including the partnership previously announced with OpenAI to expand payments and shopping capabilities within ChatGPT.
With the fiscal year complete, investors may also be looking to hear more about guidance for the next fiscal year, which could ultimately determine which direction shares head after Tuesday.
PayPal Stock Price Action
PayPal stock is up 0.4% to $52.92 on Monday versus a 52-week trading range of $52.06 to $89.71. PayPal stock is down 40.9% over the last 52 weeks.
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