PayPal shares slumped nearly 9% overnight, despite the company beating analyst earnings and revenue expectations and lifting its full-year profit guidance.

Investors were rattled by signs of slowing growth in key metrics, with PayPal CEO Alex Chriss and CFO Jamie Miller pointing to weakening US retail spending, particularly on Chinese goods impacted by ongoing tariff tensions.

Second-quarter results told a more optimistic story.

Adjusted earnings per share hit US$1.40 (A$2.07), beating forecasts of US$1.30 (A$1.92), while revenue rose 5% year-on-year to US$8.29 billion (A$12.27 billion). Total payment volume (TPV) also beat expectations, up 6% to US$443.5 billion (A$656.2 billion).

However, PayPal-branded checkout growth slowed to 5% – down from 6% in Q1 – while transaction margin dollar growth also decelerated.

That key profitability measure rose 7% to US$3.84 billion (A$5.68 billion), down slightly from the prior quarter’s 8%.

Chriss remains optimistic on PayPal’s trajectory, citing momentum across strategic initiatives.

PayPal-owned Venmo (pictured below) revenue surged more than 20% for the second quarter in a row, and the company raised its full-year EPS outlook to between US$5.15 and US$5.30 (A$7.61–A$7.83), ahead of analyst consensus.

The company is also expanding its footprint in crypto, launching support for over 100 cryptocurrencies and enabling global purchases via domestic digital wallets.

A new PayPal credit card aims to boost in-person transactions, while Chriss continues efforts to streamline operations and better monetise assets like Venmo and Braintree.

Despite the stock dip – its largest intraday fall since February – PayPal’s leadership says its investments in agentic commerce, ads and stablecoins position it well for long-term growth.

As of Tuesday’s close, PayPal shares were down 8.66% to US$71.45 (A$105.72), extending a year-to-date decline of over 8%.