PayPal Stock Tumbles on Lower-Than-Expected Adjusted Earnings

Shares of PayPal slumped Tuesday as the payment platform’s adjusted earnings missed estimates for the final quarter of 2024.

The owner of its namesake platform and others such as Venmo reported $8.37 billion in revenue for the fourth quarter, up 4% from the same time last year and better than the $8.26 billion analysts had expected, per estimates compiled by Visible Alpha.

PayPal’s (PYPL) net income came in at $1.12 billion, or $1.11 per share, down 20% from a year ago but narrowly above the $1.08 billion and $1.06 per share analysts had expected. Analysts had expected a larger gap between net and adjusted net income, however. The company’s adjusted earnings came in at $1.21 billion, below the $1.44 billion analyst consensus.

EPS Projections Top Estimates While Adjusted Outlook Falls Short

That gap continued into PayPal’s 2025 projections, with the company’s forecast topping earnings per share projections while its adjusted EPS projections fell short.

PayPal expects to earn $1.11 to $1.13 per share for the first quarter and $4.80 to $4.95 per share for the full year, compared to the $1.07 first quarter and $4.67 full-year estimate from analysts. However, the company said it expects adjusted earnings per share from $1.15 to $1.17 per share for the first quarter, and $4.95 to $5.10 for 2025, well below the $1.36 and $5.83 per share analyst consensus.

The payments processor also announced Tuesday that its board approved a new $15 billion stock buyback program, in addition to the $4.86 billion remaining under its previous program that started in the second quarter of 2022.

PayPal shares sank over 9% Tuesday morning, but are still up around 30% over the last 12 months.