PayPal Holdings Inc. (NASDAQ:PYPL) reported better-than-expected third-quarter earnings Tuesday, supported by improving margins, resilient consumer spending and cost reductions, although revenue fell short of Wall Street expectations.
Following the results, the stock is trading nearly 2% lower. 71 billion.
31. 8 billion.
8 on a trailing 12-month basis. 89 billion consensus estimate, Bloomberg reported.
6 million from the previous quarter. Cost Cuts Support Turnaround Profitability remained under pressure.
8%. ” PayPal said it remains on track to achieve $700 million in gross run-rate cost savings by the end of 2026, driven partly by more than 2,000 job cuts and a reduction of more than 25% in managerial roles.
The company is also streamlining operations, optimizing its portfolio and expanding its use of artificial intelligence, including AI-powered customer service agents. 5 billion in gross run-rate savings over the next two to three years.
05 billion in adjusted free cash flow during the quarter. As of Sept.
8 billion at the end of 2025. The board declared a quarterly dividend of 14 cents per share, payable Dec.
24. 5 billion to shareholders through the repurchase of about 28 million shares during the quarter.
See More: Top Value Stocks Resilient Consumer Spending Supports Growth PayPal benefited from steady consumer spending despite economic uncertainty and persistent inflation. The company is also expanding beyond its traditional checkout business and targeting higher-value consumers as it seeks to diversify revenue sources and strengthen long-term growth.
Competition and Strategic Changes Remain in Focus PayPal continues to face stiff competition from Apple Inc. (NASDAQ:AAPL), Alphabet Inc.
(NASDAQ:GOOG) Google and emerging financial technology companies as it seeks to regain momentum following its pandemic-era growth surge, Reuters reported Tuesday. The company has also undergone a CEO transition and restructuring while attracting takeover interest.
A reported bid from Stripe and Advent International valued PayPal at about $53 billion, but the board considered the offer inadequate. 35.
38. 39 per share.
90 during premarket trading on Tuesday, according to Benzinga Pro data.
