Investing.com -- PayPal Holdings, Inc. (NASDAQ: PYPL) reported first-quarter results that exceeded analyst expectations on both revenue and earnings. The company's shares are up 3.2% premarket.

PYPL posted adjusted earnings per share of $1.34, beating the analyst consensus of $1.27 by $0.07. Revenue increased 7% YoY to $8.4 billion, surpassing the $8.05 billion estimate. On a currency-neutral basis, revenue grew 5%. Total payment volume climbed 11% to $464.0 billion, or 8% on a currency-neutral basis, while payment transactions rose 7% to 6.5 billion.

"I'm energized by the opportunity to improve execution and accelerate PayPal's growth," said Enrique Lores, President and CEO. "We are taking deliberate steps to sharpen our strategy, simplify our organization, and improve both our growth trajectory and cost structure by focusing our investments where we believe they will have the greatest impact."

For the second quarter, PayPal guided to a high-single digit decline in adjusted EPS, or approximately -9%. The company reiterated its full-year guidance for adjusted EPS to range from a low-single digit decline to slightly positive growth.

Transaction margin dollars excluding interest on customer balances increased 3% to $3.5 billion. However, GAAP operating margin contracted 182 basis points to 17.8%, while adjusted operating margin declined 229 basis points to 18.4%.

PayPal's board declared a quarterly dividend of $0.14 per share, payable June 25, 2026.