PayPal Rises 8% as Q2 Earnings and Revenue Surpass Expectations

PayPal (NASDAQ:PYPL) saw its shares climb 8% intra-day today after reporting second-quarter earnings and revenue that surpassed analyst expectations.

The company announced an EPS of $1.19 for Q2, significantly higher than the Street estimate of $0.98. Revenue for the quarter reached $7.9 billion, slightly exceeding the projected $7.82 billion.

PayPal's total payment volume surged to $416.81 billion, marking an 11% increase year-over-year and coming close to the analyst forecast of $417.27 billion. Transaction revenue grew by 9.1% year-over-year to $7.15 billion, surpassing the estimate of $7.08 billion. The number of active customer accounts stood at 429 million, a slight 0.5% decrease from the previous year but still above the expected 427.47 million.

Looking forward, PayPal plans to repurchase $6 billion in shares, an increase from its previous forecast of at least $5 billion. The company also raised its free cash flow projection to approximately $6 billion, up from the earlier estimate of about $5 billion.

For the third quarter, PayPal anticipates adjusted EPS to grow by high single digits and revenue to increase by mid-single digits. For the full fiscal year, the company expects adjusted EPS growth in the low to mid-teens, improving from its prior forecast of mid- to high-single-digit growth.