PayPal's (PYPL.US) second quarter performance exceeds expectations, raising annual profit guidance.

PayPal (PYPL.US) has raised its earnings forecast for 2025 based on the growth momentum of its various businesses, including the Venmo payment platform, marking the effectiveness of its brand upgrade strategy. According to the financial report, the adjusted net profit in the second quarter reached $1.37 billion, a 10% increase year-on-year; the adjusted diluted earnings per share was $1.40, exceeding analysts' expectations. The company announced in a statement on Tuesday that it expects the adjusted earnings per share for 2025 to be between $5.15 and $5.30, an increase from the previously forecast range of $4.95 to $5.10. CEO Alex Chriss has been committed to integrating the once-fragmented business. Although the strategy has not been smooth sailing, revenue growth has led PayPal to also raise its transaction margin revenue expectations a key metric reflecting actual earnings after deducting transaction processing costs, now expected to reach $15.35 billion to $15.5 billion, higher than the previous forecast of $15.2 billion to $15.4 billion. Transaction margin revenue in the second quarter increased by 7% year-on-year, climbing to $3.84 billion. Chriss stated in the announcement, "Through the continued efforts of multiple strategic initiatives, we have once again achieved profit growth." Under the leadership of this CEO, the company is focusing on monetizing existing businesses and simultaneously increasing the influence of the PayPal brand in offline and online scenarios. The company stated that revenue growth on the Venmo platform in the quarter reached 20%. PayPal's total payment volume in the second quarter reached $443.5 billion, surpassing analysts' expectations of $435.7 billion. The company recently launched a platform that supports consumers using their national digital wallets for global shopping and will allow merchants to accept over 100 cryptocurrencies for settlement. In June, PayPal also added credit card products to strengthen its presence in offline payment scenarios.