PayPal Holdings (NASDAQ:PYPL) posted better-than-expected revenue and EPS for Q2, giving management the confidence to raise full-year guidance. For the full year, transaction margin dollars are now expected between $15.35 billion and $15.5 billion, while EPS guidance was lifted to $5.15–$5.30.
Total payment volume (TPV) grew 6% year-over-year and sequentially, driven largely by Venmo, which saw TPV growth of over 45% YoY. Monthly active accounts also rose modestly, up 2% year-over-year. Growth continued across the debit card and buy now, pay later (BNPL) offerings. The Braintree transition—shedding unprofitable contracts—appears complete, with flat growth in Q2 versus a decline in Q1, and expectations of a rebound in Q3.
Despite the highlights and upbeat commentary on emerging growth drivers like agentic AI and stablecoins, investor skepticism remains. Margins compressed slightly from Q1, total payment transactions declined again year-over-year, and free cash flow fell below $1 billion. Updates on key initiatives like branded checkout and Fast Lane showed progress but lacked the momentum to shift the narrative.
For more details, key highlights, and commentary, check out the high-level earnings summary.
