PayPal (PYPL) Q4 2025 earnings summary

Executive summary

• Leadership transition announced with Enrique Lores appointed as President and CEO to drive execution and innovation, with Jamie Miller serving as interim CEO during the transition.

• Achieved second consecutive year of diversified, profitable growth, with transaction margin dollars (TM$) ex. interest up 6% and non-GAAP EPS up 14% year-over-year in FY'25.

• 2025 performance was solid across multiple business lines, but branded checkout underperformed expectations due to slower merchant adoption and macroeconomic headwinds.

• Strategic investments targeted at branded checkout, BNPL, consumer engagement, and next-gen growth vectors to drive long-term benefits.

• Venmo revenue accelerated to $1.7B, up ~20% year-over-year, with active accounts and engagement metrics showing continued momentum.

Financial highlights

• FY'25 total payment volume (TPV) reached $1.79T, up 7% year-over-year (6% FXN); 4Q'25 TPV was $475B, up 9% (6% FXN).

• FY'25 revenue was $33.2B, up 4% (4% FXN); 4Q'25 revenue was $8.68B, up 4% (3% FXN).

• FY'25 non-GAAP EPS was $5.31, up 14% year-over-year; 4Q'25 non-GAAP EPS was $1.23, up 3%.

• FY'25 GAAP net income rose 26% to $5.2B; GAAP EPS up 35% to $5.41.

• Adjusted free cash flow for FY'25 was $6.41B; returned $6.0B to shareholders via repurchases.

Outlook and guidance

• FY'26 guidance: TM$ and TM$ ex. interest expected to be roughly flat or slightly declining, with low single-digit revenue growth.

• FY'26 non-GAAP EPS growth projected to be flat to slightly positive; GAAP EPS expected to decline mid-single digits.

• FY'26 adjusted free cash flow expected to exceed $6B, with $6B planned for share repurchases and ~$1B in CAPEX.

• No longer providing multi-year growth outlook; guidance will be given one year at a time due to market and execution uncertainties.

• Targeted growth investments in 2026 will represent a 3-point headwind to TM dollar growth but are expected to drive durable long-term benefits.