Story Stocks^®

PayPal (PYPL) comfortably exceeded 3Q25 EPS and revenue expectations as Total Payment Volume (TPV) growth accelerated to +8% yr/yr from +6% in Q2, signaling improving transaction momentum. The pickup marks a reversal from the slowdown earlier this year tied to repricing initiatives at Braintree, PYPL’s unbranded processing unit. However, the development that's really driving shares higher today is PYPL's separate announcement regarding a new partnership with OpenAI, the developer and owner of ChatGPT.

• Total margin dollars rose 6% yr/yr to $3.9 bln, supported by stronger take rates, improved cost discipline, and ongoing efficiency gains in infrastructure and risk management.
• Branded checkout growth remained sluggish at +5%, matching Q2, as PYPL continues to lose share to Apple (AAPL) Pay, Shop Pay, and other integrated platforms.
• PYPL declared its first-ever dividend of $0.14 per share, payable December 10, 2025, signaling management’s confidence in cash flow stability.
• The stock's rally is amplified on news that PYPL will power instant checkout and agentic commerce within ChatGPT, which now has 800 mln weekly users -- potentially a major boost to payment volume growth.
• Investors are watching to see how much incremental volume the OpenAI deal generates and whether OpenAI will eventually allow competing fintechs to process payments.

Briefing.com Analyst Insight:

PYPL delivered one of its most encouraging quarters in recent memory, pairing solid top-line and margin growth with a strategically significant AI-era partnership. The integration with OpenAI could extend PYPL’s reach into conversational commerce -- a fast-emerging frontier for digital payments. Still, the payoff will depend on user adoption and exclusivity, as execution risk remains high. The new dividend underscores confidence in profitability, but sluggish branded checkout growth remains a weak spot. With shares still below pre-2022 levels, this report may mark a sentiment shift -- though sustained TPV acceleration in Q4 will be key to validating the rebound.