Key facts
- PayPal raised its full-year adjusted profit forecast to $5.60 per share.
- Adjusted operating margin expanded 16 basis points to 18.8% in the third quarter.
- Total payment volume grew 7% to $487.1 billion in the third quarter.
- Third-quarter adjusted profit was $1.45 per share, exceeding estimates of $1.31.
- Fourth-quarter adjusted profit is expected to be $1.43 per share.
PayPal raised its full-year adjusted profit forecast on Tuesday, citing improving margins and resilient consumer spending as its turnaround efforts gain traction. The company now expects adjusted profit of about $5.60 per share, up from its previous forecast and analyst expectations of $5.38. CEO Enrique Lores expressed confidence in the path to profitable growth, following his appointment earlier this year. The company is implementing cost-saving measures, including job cuts and AI adoption, aiming for $700 million in gross run-rate cost savings by the end of 2026. In the third quarter, total payment volume grew 7% to $487.1 billion, and adjusted profit came in at $1.45 per share, surpassing estimates.