Here’s What You Can Anticipate in PayPal Holdings’ Upcoming Earnings Announcement

Overview of PayPal Holdings, Inc.

PayPal Holdings, Inc. (PYPL) stands as a prominent player in the fintech industry, offering a comprehensive digital payments platform that links consumers and businesses for both online and in-person transactions, as well as money transfers and other payment solutions. Based in San Jose, California, PayPal has established itself as a global leader in digital commerce, serving millions of users worldwide. The company currently boasts a market capitalization of approximately $55.1 billion.

Upcoming Earnings and Analyst Expectations

PayPal is scheduled to announce its fourth quarter 2025 financial results on February 3, 2026, prior to the market opening. Analysts are forecasting an earnings per share (EPS) of $1.29 for the quarter, reflecting an 8.4% increase from the $1.19 reported in the same period last year. Notably, PayPal has consistently exceeded Wall Street’s earnings projections for the past four quarters.

Financial Outlook

For the entire fiscal year 2025, PayPal’s EPS is projected to reach $5.36, marking a 15.3% rise from the $4.65 reported in 2024. Looking ahead to fiscal 2026, earnings per share are anticipated to climb by 9.3% year-over-year to $5.86.

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Stock Performance Comparison

Over the last 12 months, PayPal’s share price has dropped by 34.4%. In contrast, the Financial Select Sector SPDR Fund (XLF) has gained 14.9%, and the S&P 500 Index ($SPX) has risen by 17.7% during the same period.

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Challenges Facing PayPal

The decline in PayPal’s stock over the past year can be attributed to investor concerns about slowing growth and intensifying competition within the digital payments sector. In the third quarter of 2025, the company’s active accounts increased by just 1% year-over-year. Meanwhile, total payment transactions fell by 5%, and transactions per active account over the trailing twelve months dropped by 6%, suggesting users are making fewer transactions. Broader economic challenges, such as weaker consumer spending and uncertainties related to tariffs, have also negatively impacted investor sentiment.

Analyst Ratings and Price Targets

Analysts maintain a cautious stance on PayPal, with a consensus rating of “Hold.” Out of 42 analysts, eight rate the stock as a “Strong Buy,” two as a “Moderate Buy,” 27 as a “Hold,” one as a “Moderate Sell,” and four as a “Strong Sell.” The average price target among analysts is $74.73, which implies a potential upside of 29.6% from current levels.