Digital payments platform PayPal (NASDAQ:PYPL) fell short of the markets revenue expectations in Q4 CY2025 as sales rose 3.7% year on year to $8.68 billion. Its non-GAAP profit of $1.23 per share was 4.5% below analysts’ consensus estimates.

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Revenue: $8.68 billion vs analyst estimates of $8.78 billion (3.7% year-on-year growth, 1.2% miss)

Pre-tax Profit: $1.63 billion (18.8% margin)

Adjusted EPS: $1.23 vs analyst expectations of $1.29 (4.5% miss)

Market Capitalization: $48.96 billion

Originally spun off from eBay in 2015 after being acquired by the auction giant in 2002, PayPal (NASDAQ:PYPL) operates a global digital payments platform that enables consumers and merchants to send, receive, and process payments online and in person.

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, PayPal grew its revenue at a decent 9.1% compounded annual growth rate. Its growth was slightly above the average financials company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. PayPal’s recent performance shows its demand has slowed as its annualized revenue growth of 5.6% over the last two years was below its five-year trend.

Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, PayPal’s revenue grew by 3.7% year on year to $8.68 billion, falling short of Wall Street’s estimates.

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We struggled to find many positives in these results. Its EBITDA missed and its EPS fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 14.6% to $44.86 immediately following the results.

PayPal underperformed this quarter, but does that create an opportunity to invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.