PayPal Reports Earnings Beat but Faces Investor Concerns Over Margins and Market Share

The digital payments giant exceeded revenue and profit expectations for Q4 2024, but slower growth in key segments led to a sharp stock decline.

PayPal's Q4 2024 revenue rose 4% to $8.37 billion, and adjusted earnings per share reached $1.19, both surpassing Wall Street estimates.
Total payment volume increased 7% year-over-year to $437.8 billion, though branded checkout growth of 6% fell short of investor expectations.
Operating margins contracted in Q4, raising concerns about profitability despite a 7% annual rise in transaction margin dollars to $14.7 billion.
CEO Alex Chriss emphasized a focus on 'profitable growth' through pricing adjustments, product innovations like Fastlane, and expanded Venmo adoption.
PayPal announced a new $15 billion stock buyback program and provided an optimistic 2025 profit outlook, projecting adjusted EPS of $4.95 to $5.10.