PayPal has reported a 7% increase in GAAP and non-GAAP net revenues to $8.4bn in the third quarter (Q3) of the financial year 2025 (FY25) ending 30 September, compared to $7.8bn in Q3 2024.
Its GAAP (generally accepted accounting principles) net income rose 24% to $1.24bn, while the non-GAAP net income during the quarter grew 5% to $1.28bn in Q3 2025.
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The GAAP operating income grew 9% to $1.52bn, and non-GAAP operating income increased 6% to $1.56bn.
PayPal saw its GAAP earnings per share (EPS) grow 32% to $1.303 and non-GAAP EPS by 12% to $1.34.
Total payment volume (TPV) for the quarter rose by 8% to $458.1bn. However, payment transactions saw a 5% decrease, with 6.3 billion transactions processed.
Excluding payment service providers (PSP) transactions, there was a 7% rise in payment transactions.
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By GlobalDataOn a trailing 12-month basis, the number of payment transactions per active account (TPA) fell by 6% to 57.6, though TPA excluding PSP transactions rose by 5%.
The number of active accounts saw a slight 1% increase, reaching 438 million. Active accounts, on a sequential basis, grew by 0.1%, or by 0.3 million.
As of 30 September 2025, the company’s cash, cash equivalents, and investments amounted to $14.4bn, while its total debt stood at $11.4bn.
During the third quarter of 2025, the company returned $1.5 billion to its stockholders by repurchasing around 21 million shares of common stock.
The updated guidance for the fourth quarter of 2025 indicates a GAAP EPS range of $1.23 to $1.27 and a non-GAAP EPS range of $1.27 to $1.31, compared to the prior year’s fourth quarter EPS of $1.11 and $1.19, respectively.
For the full fiscal year 2025, PayPal’s GAAP EPS guidance has been raised to a range of $5.11 to $5.15, up from the previous estimate of $4.90 to $5.05, while the non-GAAP EPS guidance has been adjusted to $5.35 to $5.39, compared to the earlier range of $5.15 to $5.30. This marks a significant increase from the prior year’s figures of $3.99 for GAAP EPS and $4.65 for non-GAAP EPS.
Meanwhile, PayPal has rolled out agentic commerce services, aimed at helping merchants engage customers in the AI-driven shopping landscape.
The company also announced that it will adopt the Agentic Commerce Protocol (ACP) to expand payments and commerce in ChatGPT.
Recently, Mastercard and PayPal have extended their partnership, integrating the agentic payments platform, Mastercard Agent Pay, into PayPal’s wallet.
