(Bloomberg/Paige Smith and Georgie McKay) — PayPal Holdings Inc. raised its full-year earnings guidance and announced a tie-up with OpenAI to embed its digital wallet into ChatGPT, sending its shares soaring in early New York trading.
With consumers continuing to show spending strength, PayPal raised its 2025 adjusted earnings-per-share forecast to $5.35 to $5.39, up from the $5.15 to $5.30 it reported in July. The firm also announced a dividend program that will pay 14 cents a share this quarter.
“This is a stronger company today than we were two years ago,” Chief Executive Officer Alex Chriss said in a statement Tuesday. “With differentiated competitive advantages, clear strategic direction and building execution momentum, we believe we are exceptionally well-placed to win into the future.”
Shares of PayPal, which had slumped almost 18% this year through Monday, surged 14% in early New York trading.
Hundreds of millions of OpenAI users already use the startup’s generative artificial intelligence to find products, and the new tie-up will mean PayPal provides the payment technology to turn those searches into actual purchases.
Third Quarter
PayPal’s third-quarter transaction and credit losses exceeded analysts’ estimates, jumping more than 37% from a year earlier to $483 million, compared with the $479 million expected.
Total payment volume beat expectations of $450.3 billion, increasing 8% to $458.1 billion. Transaction margin dollars, which represents how much the company earns from processing transactions after expenses, were $3.87 billion.
During the period, the private credit firm Blue Owl Capital Inc. agreed to buy about $7 billion of PayPal’s buy-now, pay-later loans over the next two years – another example of how the $1.7 trillion private credit market continues to expand. PayPal will handle all customer-facing activities for the loans, including underwriting and servicing, but won’t have to hold the assets on its balance sheet.
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