Paypal shares up after earnings outlook

Investing.com -- PayPal (NASDAQ:PYPL) shares rose approximately 3% in premarket trading Tuesday after the company outlined its medium-term growth targets for 2025 to 2027.

The outlook comes alongside an announcement of the fintech giant’s Investor Day in New York City, which it will host on Tuesday at 8:30 a.m. EST. The Investor Day announcement included a new unified merchant offering, a strategic partnership with Verifone, and plans for international expansion of its Fastlane checkout service.

PayPal reaffirmed its 2025 outlook, projecting at least 5% growth in transaction margin dollars, excluding interest on customer balances, and a 6-10% increase in non-GAAP earnings per share (EPS).

Looking further ahead, the company aims for over 10% growth in transaction margin dollars and more than 20% growth in non-GAAP EPS.

PayPal President and CEO Alex Chriss highlighted the company's focus on returning to profitable growth in 2024 and its strategy to unify its platform for a better consumer and merchant experience.

“Looking ahead, we expect high single-digit transaction margin dollar growth and low teens non-GAAP EPS growth by 2027,” Chriss said. “We have a clear strategy designed to accelerate profitable growth for years to come.”

Regarding the new offerings, PayPal introduced PayPal Open, a merchant platform offering commerce tools within its ecosystem and integrations with external partners. Launching in the US, it will expand to the UK and Germany next year, with more markets to follow.

The company also unveiled an expanded partnership with Verifone, combining in-person payments with PayPal’s processing and e-commerce capabilities for an omnichannel solution.

Additionally, PayPal is extending its collaboration with JPMorgan (NYSE:JPM) Payments to bring its Fastlane guest checkout service to merchants in the UK and Europe.