PayPal Shares Slide 9% Despite Earnings Beat As Transaction Growth Slows

PayPal (NASDAQ:PYPL) reported stronger-than-expected second-quarter earnings, but shares fell 9% intra-day as investors reacted to slowing transaction growth despite robust financials.

The company posted adjusted earnings per share of $1.40, above analysts’ estimate of $1.30. Revenue reached $8.3 billion, exceeding the $8.08 billion consensus and marking a 5% increase from the year-ago quarter.

Transaction margin dollars rose 7% to $3.8 billion, and 8% excluding interest on customer balances. However, total payment transactions fell 5% to 6.2 billion. When excluding payment service provider volumes, transactions increased 6%.

Total payment volume climbed 6% to $443.5 billion, or 5% on a currency-neutral basis.

PayPal raised its full-year EPS guidance to $5.15–$5.30, up from $4.95–$5.10 and above analyst estimates of $5.10. For Q3, the company projected adjusted EPS of $1.18–$1.22 versus the $1.21 consensus.