William Blair Issues Pessimistic Outlook for PayPal Earnings

PayPal Holdings, Inc. (NASDAQ:PYPL) – William Blair reduced their Q1 2025 earnings per share (EPS) estimates for PayPal in a research note issued on Tuesday, February 25th. William Blair analyst A. Jeffrey now expects that the credit services provider will earn $1.18 per share for the quarter, down from their previous estimate of $1.19. The consensus estimate for PayPal’s current full-year earnings is $5.03 per share. William Blair also issued estimates for PayPal’s Q4 2025 earnings at $1.42 EPS and FY2026 earnings at $5.75 EPS.

PayPal (NASDAQ:PYPL) last announced its quarterly earnings data on Tuesday, February 4th. The credit services provider reported $1.19 earnings per share for the quarter, beating the consensus estimate of $1.11 by $0.08. The business had revenue of $8.37 billion during the quarter, compared to analyst estimates of $8.27 billion. PayPal had a return on equity of 23.67% and a net margin of 13.04%. The company’s revenue was up 4.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.48 earnings per share.

PYPL has been the subject of several other reports. Keefe, Bruyette & Woods upped their target price on PayPal from $92.00 to $104.00 and gave the company an “outperform” rating in a report on Monday, December 9th. BTIG Research reaffirmed a “neutral” rating on shares of PayPal in a report on Tuesday, February 4th. Macquarie upped their target price on PayPal from $115.00 to $117.00 and gave the company an “outperform” rating in a report on Monday, February 10th. JPMorgan Chase & Co. reaffirmed an “overweight” rating on shares of PayPal in a report on Tuesday, February 4th. Finally, Robert W. Baird reduced their target price on PayPal from $100.00 to $95.00 and set an “outperform” rating for the company in a report on Wednesday, February 5th. Fourteen equities research analysts have rated the stock with a hold rating, twenty have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $89.97.

PayPal Trading Down 1.8 %

Shares of PayPal stock opened at $70.73 on Thursday. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.48. The firm has a market cap of $69.97 billion, a price-to-earnings ratio of 17.64, a price-to-earnings-growth ratio of 1.27 and a beta of 1.44. The business has a fifty day simple moving average of $83.93 and a 200-day simple moving average of $80.89. PayPal has a fifty-two week low of $56.97 and a fifty-two week high of $93.66.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in PYPL. Norges Bank acquired a new position in shares of PayPal during the 4th quarter valued at about $1,086,508,000. Mizuho Securities USA LLC grew its holdings in PayPal by 12,919.4% in the 3rd quarter. Mizuho Securities USA LLC now owns 10,500,000 shares of the credit services provider’s stock valued at $819,315,000 after buying an additional 10,419,351 shares during the last quarter. Capital Research Global Investors grew its holdings in PayPal by 108.2% in the 4th quarter. Capital Research Global Investors now owns 17,924,106 shares of the credit services provider’s stock valued at $1,529,823,000 after buying an additional 9,313,783 shares during the last quarter. FMR LLC grew its holdings in PayPal by 86.3% in the 3rd quarter. FMR LLC now owns 16,762,080 shares of the credit services provider’s stock valued at $1,307,945,000 after buying an additional 7,767,072 shares during the last quarter. Finally, Artisan Partners Limited Partnership grew its holdings in PayPal by 284.0% in the 4th quarter. Artisan Partners Limited Partnership now owns 7,804,334 shares of the credit services provider’s stock valued at $666,100,000 after buying an additional 5,772,198 shares during the last quarter. Institutional investors and hedge funds own 68.32% of the company’s stock.

PayPal Company Profile

PayPal Holdings, Inc operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards.