Revenue Growth Momentum
PayPal grew total revenue by 4.3% year-over-year to $33.2B in FY2025, reflecting continued expansion in payment volumes and monetization improvements across its platform.
Source: 10-K Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
PayPal delivered strong FY2025 results with revenue up 4.3% to $33.2B, net income surging 26.2% to $5.2B, and EPS jumping 35.5% to $5.46, driven by significant margin expansion and disciplined cost management.
Revenue
$33.17B
+4.32% YoY
EPS (Diluted)
$5.41
+35.59% YoY
Operating Income
$6.07B
+13.90% YoY
Source: SEC XBRL
PayPal Holdings (PYPL) reported FY2025 revenue of $33.17B, up 4.3% year over year. Operating margin was 18.3%, up 1.6 points from 16.7% a year earlier. Operating cash flow was $6.42B, down 13.9% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.38 | 1.30 | Beat +5.9% |
| Mar 2026 | 1.34 | 1.29 | Beat +3.6% |
| Dec 2025This filing | 1.23 | 1.31 | Miss -6.1% |
| Sep 2025 | 1.34 | 1.23 | Beat +9.4% |
Reported EPS of $1.23 versus the $1.31 analyst consensus — a -6.1% miss for Dec 2025.
Compiled by AI from this SEC filing
PayPal grew total revenue by 4.3% year-over-year to $33.2B in FY2025, reflecting continued expansion in payment volumes and monetization improvements across its platform.
Source: 10-K Income Statement
Operating margin improved by approximately 154 basis points to 18.3% in FY2025 (from 16.7% in FY2024), with operating income rising 13.9% to $6.1B, indicating strong operating leverage and cost discipline.
Source: 10-K Income Statement & Key Ratios
Net income grew 26.2% to $5.2B while diluted EPS surged 35.6% to $5.41, with EPS growth significantly outpacing revenue growth due to both earnings improvement and share count reduction from buybacks.
Source: 10-K Income Statement
PayPal returned approximately $6.2B to shareholders in FY2025, including $6.1B in share buybacks and $130M in dividends (the first dividend payment vs. $0 in FY2024), reflecting strong confidence in cash generation.
Source: 10-K Cash Flow Statement
Cash and equivalents increased 20.8% to $8.0B, even as operating cash flow declined 13.9% to $6.4B, suggesting the company maintained a solid liquidity buffer while funding its capital return program.
Source: 10-K Balance Sheet & Cash Flow Statement
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Operating cash flow fell 13.9% year-over-year to $6.4B in FY2025, even as net income rose sharply. This divergence may reflect working capital changes or timing differences in customer balances, and warrants monitoring to ensure earnings quality remains high.
Source: 10-K Cash Flow Statement
PayPal's debt-to-equity ratio stands at approximately 2.96x, reflecting significant financial leverage. With $10.0B in long-term debt and stockholders' equity declining slightly to $20.3B, the company carries meaningful balance sheet risk if earnings or cash flows deteriorate.
Source: 10-K Balance Sheet & Key Ratios
The current ratio of 1.29x indicates that current assets only modestly exceed current liabilities ($59.8B vs. $46.4B). For a payments company holding significant customer funds, any sudden liquidity stress or regulatory requirement to segregate funds could tighten this cushion.
Source: 10-K Balance Sheet & Key Ratios
PayPal operates in an intensely competitive digital payments landscape facing rivals including Apple Pay, Google Pay, Stripe, and traditional card networks. Regulatory changes in payment processing, interchange fees, or data privacy could materially impact revenue growth and margins.
Source: 10-K (inferred from business model and industry context)
Investing cash flow dropped 52.8% to $797M in FY2025, which may reflect reduced proceeds from asset sales or investment portfolio changes. If this signals reduced reinvestment in growth initiatives, it could affect long-term competitive positioning.
Source: 10-K Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 33.17 $B | 31.80 $B | +4.32% |
Operating Income $B | 6.07 $B | 5.33 $B | +13.90% |
Net Income $B | 5.23 $B | 4.15 $B | +26.19% |
EPS (Basic) $ | 5.46 $ | 4.03 $ | +35.48% |
EPS (Diluted) $ | 5.41 $ | 3.99 $ | +35.59% |
Answers draw on this SEC filing and the data on this page
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