PayPal Holdings Inc (NASDAQ:PYPL) is likely to report its revenue ahead of consensus for the fourth quarter, while announcing in-line adjusted earnings, according to JPMorgan.
The PayPal Holdings Analyst: Analyst Tien-tsin Huang reiterated a Neutral rating on the stock.
The PayPal Holdings Thesis: The branded checkout growth assumption of 3% seems to have some downside risk, Huang said in the note.
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Management has stuck with its “8%+ branded growth target in 2027,” Huang wrote. This “likely requires material progress on converting merchants to latest checkout integration, in addition to solid returns on investments in Agentic and BNPL flows.”
The analyst estimates Branded checkout growth of 5% for 2026, higher than Street expectations of 3.5%, provided PayPal’s execution is “sharp.”
PayPal could generate in-line adjusted earnings in 2026, assuming the company “maintains a high level of share repurchase spend (93% of FCF) to protect EPS during this investment year,” he added.
PYPL Price Action: Shares of PayPal Holdings had declined by 1.08% to $55.99 at the time of publication on Tuesday.
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