PYPL Stock Rises After Company Raises Annual Profit Forecast, Plans To Embed Digital Wallet In ChatGPT

• PayPal CEO Alex Chriss noted that “hundreds of millions of people” turn to ChatGPT each week for help with everyday tasks, including finding products, and over 400 million use PayPal to shop.
• PayPal now expects its annual adjusted earnings per share (EPS) to be between $5.35 and $5.39, up from its prior forecast of $5.15 to $5.30.
• The company’s third-quarter revenue of $8.4 billion topped Wall Street estimates of $8.23 billion, according to data compiled by Fiscal AI.

PayPal (PYPL) shares jumped nearly 15% on Tuesday morning after the company raised its annual adjusted profit forecast and announced that it would adopt the Agentic Commerce Protocol (ACP) to expand payments and commerce in ChatGPT. 

The payments firm said that millions of ChatGPT users will be able to check out instantly using PayPal, and it will support payment processing for merchants leveraging OpenAI Instant Checkout.

“PayPal will also connect its global merchant network to OpenAI, creating a platform for tens of millions of small businesses and the largest brands in the world to sell within ChatGPT,” PayPal said in a statement.

Retail sentiment on PayPal jumped to ‘extremely bullish’ from ‘bearish’ territory compared to a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits.

CEO Alex Chriss’ View

PayPal CEO Alex Chriss noted that “hundreds of millions of people” turn to ChatGPT each week for help with everyday tasks, including finding products, and over 400 million use PayPal to shop.

“By partnering with OpenAI and adopting the Agentic Commerce Protocol, PayPal will power payments and commerce experiences that help people go from chat to checkout in just a few taps for our joint customer bases,” Chriss said.

PayPal said this partnership would bring its wallet to “Instant Checkout,” including multiple funding options such as bank accounts, balances, and cards, as well as PayPal's buyer and seller protections. It would also help with post-purchase services such as tracking and dispute resolution, benefits that consumers value when checking out with PayPal.

The company said that in 2026, ACP will bring in the product catalogs of small businesses and marquee retail brands across apparel, fashion, beauty, home improvement, and electronics to ChatGPT commerce via PayPal's ACP server.

PayPal’s Q3 Results

PayPal now expects its annual adjusted earnings per share (EPS) to be between $5.35 and $5.39, up from its prior forecast of $5.15 to $5.30.

The company’s third-quarter revenue of $8.4 billion topped Wall Street estimates of $8.23 billion, according to data compiled by Fiscal AI. PayPal’s adjusted EPS of $1.34 beat expectations of $1.20.

PayPal said that in the third-quarter, total payment volume increased 8% to $458.1 billion while payment transactions decreased 5% to 6.3 billion. Excluding payment service provider transactions, payment transactions increased 7%, the company added.

Shares of PayPal have declined nearly 18% this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Amazon Layoffs: Retail Giant To Slash 14000 Jobs

Share

·

Add us on