PayPal reports a decrease in quarterly branded volume growth, as concerns over tariffs impacting e-commerce spending loom large. Despite exceeding profit forecasts, shares fell by 8% in early trading, with U.S. consumers cutting back on retail purchases due to rising prices on essentials.

Online branded checkout growth slowed to 5% in the second quarter, raising concerns about consumer spending amid trade tensions. PayPal CFO Jamie Miller emphasizes the need to monitor tariffs and trading friction’s impact on global economic activity. The company saw a slowdown in volumes on the China-U.S. corridor post-tariffs, but has since seen improvement in July.

PayPal focuses on reviving growth in high-margin businesses such as Venmo, leading to a profit forecast hike for 2025. Analysts remain cautious about branded total payment volume growth and potential softening in consumer spending. The company now expects an adjusted annual profit in the range of $5.15 to $5.30 per share, an increase from previous estimates.

Under CEO Alex Chriss, PayPal shifts focus to profitability over top-line growth, with Venmo revenue growing by 20% in Q2. Transaction margin dollars increase by 7% to $3.8 billion, showcasing efforts to drive higher-margin volumes and streamline costs. Adjusted operating margins expand to 19.8%, addressing investor concerns about market share erosion.

Read more at Yahoo Finance: PayPal lifts 2025 profit target; branded volume softness weighs on shares