Paypal (PYPL) reported $8.68 billion in revenue for the quarter ended December 2025, representing a year-over-year increase of 3.7%. EPS of $1.23 for the same period compares to $1.19 a year ago.
The reported revenue represents a surprise of -1.07% over the Zacks Consensus Estimate of $8.77 billion. With the consensus EPS estimate being $1.29, the EPS surprise was -4.36%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Paypal performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Total Payment Volume (TPV): $475.14 billion versus $468.32 billion estimated by seven analysts on average.
- Transaction margin: 46.5% compared to the 46.3% average estimate based on six analysts.
- Transaction take rate: 1.7% versus the six-analyst average estimate of 1.7%.
- Transaction expense rate: 0.9% versus the four-analyst average estimate of 0.9%.
- Total take rate: 1.8% compared to the 1.9% average estimate based on four analysts.
- Active accounts: 439 versus 440 estimated by four analysts on average.
- Transaction and Credit loss rate: 0.1% versus 0.1% estimated by three analysts on average.
- Number of payment transactions: 6,754 versus the two-analyst average estimate of 6,607.
- Net Revenues- Revenues from other value added services: $857 million versus $835.17 million estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +10.2% change.
- Net Revenues- Transaction revenues: $7.82 billion versus $7.93 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +3% change.
View all Key Company Metrics for Paypal here>>>
Shares of Paypal have returned -11.7% over the past month versus the Zacks S&P 500 composite's +1.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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PayPal Holdings, Inc. (PYPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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