PayPal has reported a robust 45% increase in net income for the first quarter of 2025, buoyed by strong earnings per share and effective cost management. According to Reuters, the company's non-GAAP EPS stood at $1.33, beating analyst expectations of $1.16, although its total revenue of $7.79 billion fell slightly short of the anticipated $7.85 billion.
The financial report highlighted several key factors contributing to PayPal's performance. Total Payment Volume (TPV) rose by 4% year-over-year, and the branded checkout transaction volume saw a 6% growth, excluding leap day effects. Notably, operating expenses decreased by 4%, showcasing the company's adept cost control measures. Despite maintaining its adjusted profit forecast between $4.95 and $5.10 per share, PayPal acknowledged ongoing economic uncertainties impacting its outlook.
Despite these achievements, PayPal's stock faced a slight decline, with shares dropping 1% in pre-market trading and being down 24% for the year amid competition from tech giants like Apple and Google. As of the latest trade, PayPal's stock price was recorded at $66.32. These factors reflect the competitive pressures in the financial technology space, even as PayPal continues to navigate a challenging economic landscape.