PayPal Q1 Revenue Up 7% to $8.4B as Macquarie Cuts Rating to Neutral
PYPL•Q1 revenue rose 7% YoY to $8.4B with total payment volume climbing 11% to $464B, yet net income fell to $1.11B from $1.29B. Macquarie lowered its rating to Neutral with a $50 price target while management guides flat full-year transaction margin dollars and targets $1.5B in three-year cost savings.
1. Q1 Financial Highlights
PayPal reported Q1 revenue of $8.4B, up 7% year-over-year, while total payment volume rose 11% to $464B. Despite top-line growth, net income declined to $1.11B from $1.29B in the prior year period.
2. Analyst Rating Change
Macquarie downgraded PayPal to a Neutral rating with a $50 price target, citing slowing growth and pressure on margins. The cut reflects concerns over the company’s turnaround pace and recent earnings mix.
3. Guidance and Cost-Cutting Plans
Management expects flat full-year transaction margin dollars despite near-term headwinds, supported by branded checkout stabilization. A strategic reorganization aims to deliver $1.5B in cost savings over three years to bolster profitability.
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