PayPal Earnings Pop 27% Under New Reporting Method. PayPal Stock Is Set To Break Out.

PayPal Holdings reported a 27% increase in first-quarter earnings under a new accounting method, surpassing expectations with revenue of $7.7 billion and earnings of $1.08 per share. The digital payments firm also raised its 2024 profit outlook, forecasting mid to high single-digit percentage growth in adjusted EPS.

Under the new reporting regime, key financial metrics like total payment volume and active accounts showed significant growth, with the former rising 14% to $403.9 billion. PayPal's management, under new CEO Alex Chriss, emphasized ongoing strategic adjustments aimed at long-term success, alongside plans for substantial share buybacks totaling at least $5 billion in 2024.